Post-Acquisition Integration: The Structure of the Deal Determines the Human and Organizational Resource Requirements
Acquisitions are a tool of corporate development which have been viewed in two very different ways. In the 1960s, following the logic of portfolio theory, acquisitions were used to reduce shareholder risk, by combining the earning streams of unrelated business. The result was conglomerates. The problem periods for individual businesses and markets offset each other. Shareholders were presented with a package of businesses which performed slightly less well than the stock market averages. Uncertainty was reduced, but who wants an investment in which they are certain to do less well then average?
KeywordsParent Company Equity Financing Human Resource Planning Contingent Payment Manage Cash Flow
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