TY  - CHAP
AB  - Abstract Cross-border mergers and acquisitions are now the fundamental mechanisms of globalization and considered as prime vehicles for business engagement across the countries through the foreign direct investment route. Significant amounts of foreign funds are crossing the country borders for acquisitions with the objectives of earning super normal returns. But realizing super normal returns from foreign acquisitions are far more difficult than that of foreign greenfield projects or domestic M&As or greenfield projects. The super normal profit itself is “synergy” which is the main driving force for any M&A including the cross-border one. Even though foreign policies of individual countries affect cross-border M&A decisions, corporate and market-driven financial numbers significantly influence the synergy estimation. Synergy should bring in all round greater efficiency and value addition to all stakeholders. But if the cross-border deal is not financially crafted properly, it may fall flat causing more distress to the acquirer compared to domestic acquisition. The theory of synergy is well developed which mostly applies to the domestic M&As. But due to inherent differences between cross-border and domestic M&As, the same synergy theory may not apply equally to the cross-border ones. Therefore, a different connotation of synergy is propounded in this work for cross-border M&As, which can be a corollary to the conventional theory of synergy. This alternative theory of synergy aims at helping the companies in developing their own financial strategies before making their strategic decisions for cross-border M&A deals.
VL  - 12
SN  - 978-1-78190-836-5/1479-361X
DO  - 10.1108/S1479-361X(2013)0000012008
UR  - https://doi.org/10.1108/S1479-361X(2013)0000012008
AU  - Ghosh Ray Kamal
AU  - Ghosh Ray Sangita
PY  - 2014
Y1  - 2014/01/01
TI  - Cross-Border Mergers and Acquisitions: Modelling Synergy for Value Creation
T2  - Advances in Mergers and Acquisitions
T3  - Advances in Mergers and Acquisitions
PB  - Emerald Group Publishing Limited
SP  - 113
EP  - 134
Y2  - 2024/04/23
ER  -