Predicting Post-Acquisition Performance : Focusing on High-Technology Target Firms

Merger and acquisition (M&A) activity represents a major force in the global business environment, whether measured by the number or the value of deals. Even though existing research finds acquisitions, on average, do not improve firm performance, the dominant explanation for why firms pursue acquisitions is that they seek increased performance. There is a recognized need to model post-acquisition performance to help distinguish between acquisitions that will fail and those that will succeed. By addressing methodological shortcomings in existing post-acquisition performance research, the present research develops a model for predicting when acquisitions of high-technology targets result in improved performance. Implications for both theory and managerial practice are identified.Air Force Inst of Tech Wright-Patterson AFB OH is the author of 'Predicting Post-Acquisition Performance : Focusing on High-Technology Target Firms', published 2002 under ISBN 9781423506294 and ISBN 1423506294.