Chapter-6收購、兼并和重組課后題目

Integration:Mergers,Acquisitions,andBusinessAlliancesWhatcouldbeworsethanbeingwithoutsight?Beingbornwithsightandnovision.—HelenKellerExhibit1:CourseLayout:Mergers,Acquisitions,andOtherRestructuringActivitiesPartIV:DealStructuringandFinancingPartII:M&AProcessPartI:M&AEnvironmentCh.11:PaymentandLegalConsiderationsCh.7:DiscountedCashFlowValuationCh.9:FinancialModelingTechniquesCh.6:M&APostclosingIntegrationCh.4:BusinessandAcquisitionPlansCh.5:SearchthroughClosingActivitiesPartV:AlternativeBusinessandRestructuringStrategiesCh.12:Accounting&TaxConsiderationsCh.15:BusinessAlliancesCh.16:Divestitures,Spin-Offs,Split-Offs,andEquityCarve-OutsCh.17:BankruptcyandLiquidationCh.2:RegulatoryConsiderationsCh.1:MotivationsforM&APartIII:M&AValuationandModelingCh.3:TakeoverTactics,Defenses,andCorporateGovernanceCh.13:FinancingtheDealCh.8:RelativeValuationMethodologiesCh.18:Cross-BorderTransactionsCh.14:ValuingHighlyLeveragedTransactionsCh.10:PrivateCompanyValuationCurrentLearningObjectivesPrimarylearningobjectives:ToprovidestudentswithknowledgeofFactorscriticaltosuccessfullyintegratingbusinesses,Post-mergerintegrationplanning,andKeyactivitiesthatmake-uptheintegrationprocessSecondarylearningobjectives:ToprovidestudentswithknowledgeofPost-mergerintegrationorganizationsHowtodevelopcommunicationplansHowtocreateaneworganizationHowtodevelopstaffingplans,andIntegratingcorporateculturesFactorsAffectingSuccessfulIntegrationThepaceofintegrationIntegrationplanningEffectivecommunicationCustomerfocusMakingthetoughdecisionsearlyFocusingonthehighestleverageissuesViewingIntegrationasaProcessIntegrationplanningDevelopingcommunicationplansCreatinganeworganizationDevelopingstaffingplansFunctionalintegrationIntegratingcorporateculturesIntegrationPlanningUseduediligencetodeterminepost-closingsequencingofeventsnecessarytorealizepotentialsavingsResolvecontract-relatedtransitionissuesinpurchaseagreementEmployeepayrollandbenefitsclaimsprocessingSellerreimbursementforproductsshippedbeforeclosingforwhichpaymentnotreceivedBuyerreimbursementforvendorsupplies/servicesreceivedbeforeclosingforwhichpaymenthadnotyetbeenmadeEnsurecontractclosingconditionsincludethosenecessarytofacilitateintegration(e.g.,employeecontracts,agreementsnottocompete)Developpost-mergerintegrationorganization(managementintegrationteam“MIT”)consistingofbothtargetandacquirermanagerstoBuildamasterscheduleofwhatshouldbedone,bywhomandbywhatdateEstablishworkteamstodeterminehoweachfunctionandbusinessunitwillbecombinedEstablishpost-closingcommunicationstrategyforallstakeholdersAlbertsonAcquiresAmericanStores:UnderestimatingIntegrationCostsWhenAlbertson’sacquiredAmericanStores(ownersoftheLuckysupermarketstores)for$12.5billion,makingitthenation’ssecondlargestsupermarketchain,withmorethan1000stores,thecorporatemarriagestumbledalmostimmediately.Escalatingintegrationcostscausedprofitstotumblealmostfollowingclosing.Inthefirstquarterofoperation,combinedoperatingprofitsfell15%to$185million,despiteanincreaseinsalesof1.6%to$8.98billion.Albertson’sproceededtoupdatetheLuckysupermarketstoresthatithadacquiredinCaliforniaandtocombinethedistributionoperationsofthetwosupermarketchains.ItappearsthatAlbertson’ssubstantiallyunderestimatedthecomplexityofintegratinganacquisitionofthismagnitude.Albertson’sspentabout$90millionbeforetaxestoconvertmorethan400storestoitsinformationanddistributionsystemsaswellastochangethenametoAlbertson’s.Bytheendoftheyearfollowingclosing,Albertson’sstockhadlostmorethanone-halfofitsvalue.DiscussionQuestions:1. Inyourjudgment,doyouthinkacquirers’commonly(albeitnotdeliberately)understateintegrationcosts?Whyorwhynot? 2. Citeexamplesofexpensesyoubelievearecommonlyincurredinintegratingtargetcompanies.DevelopingCommunicationPlansEmployees:Addressthe“metoo”issuesimmediatelyCommunicatefrequentlyandhonestlyhowthemergerwillaffectemployeesCustomers:Under-commitandover-deliverAcquisition-relatedcustomerattritionMeetcommitmentstocurrentcustomersSuppliers:Developlong-termvendorrelationshipsInvestors:Maintainshareholderloyaltybypresentingacompellingvision.Communities:Buildstrong,crediblerelationshipsDiscussionQuestionsWhyisthepacewithwhichbusinessesareintegratedimportant?Bespecific.Whyisitcriticaltomakethetoughdecisionsaboutwhotoputinkeymanagementpositionsearlyintheintegrationeffort?Whyarefirmslikelytolosecustomersduringtheintegrationperiod?CreatingaNewOrganizationLearnfromthepast:PriororganizationchartsforbothfirmsprovideinsightsintoindividualexpectationsconcerningfuturereportingrelationshipsBusinessneedsdriveorganizationalstructure:Structurefacilitatesdecisionmaking,providesinternalcontrols,andpromotesdesiredbehaviorsBasicstructuresincludefunctional,product,ordivisionalDecentralizedversuscentralizedstructuresIntegratecorporateculture:BalanceneedforcontrolwithneedforflexibilityMergingcorporateboards(outsidersimproveeffectiveness)Integratingseniormanagement(selectmanagersfrombothcompaniesbestsuitedforimplementingstrategy)Onceselected,seniormanagersshouldbegivenfullresponsibilityforselectingtheirdirectreportsDevelopingStaffingPlansPersonnelrequirements:DeterminewhatfunctionsareneededbythecombinedbusinessesProjectpersonnelrequirementsbyfunctionEmployeeavailability:ConsidercurrentemployeesaswellasthosewithincommunitiesinwhichnewcompanyhasoperationsPlansandtimetables:Matchskillsofcurrentemployeeswiththoseneededbynewfirmtodetermine“gaps”Compensation:Considerbasepay,incentiveplans,andspecialcontractualarrangements.Integratingcompensationplans:Extentofintegrationdependsonwhethertargettobemanagedseparatelyorwhollyintegrated.Personnelinformationsystems:Integratetoachieveoperatingefficienciesunlessplantodivestunitsatalaterdate.FunctionalIntegrationDuediligencedatarevalidation:VerifyassumptionsPerformancebenchmarking:Compareactualperformancewithindustry“bestpractices”FunctionsManufacturingandoperations(facilityconsolidation)Informationtechnology(90%ofacquirerscombineoperations)Finance(implementinternalcontrolsandfinancialreporting)Sales(implementingcross-sellingfrequentlyachallenge)Marketing(avoidbrandconfusion)Purchasing(potential10-15%reductioninpurchasingcosts)Researchanddevelopment(setprioritiesconsistentwithstrategy)Humanresources(decentralizinghiring&training;centralizebenefitsadministration,managementsystemsandplanning)IntegratingCorporateCulturesCulturalissues:DifferbySizeandmaturityofcompany(start-upsversusmature)Industry(hightechversusfinanceandretailing)Geographiclocation(domesticversusforeign)Culturalprofiling:Usingemployeesurveysandinterviews,identifyHowthetargetandacquirerculturesarealikeandhowdifferCharacteristicsofbothculturesthataretobeencouragedTechniquesforintegratingcorporatecultures:EstablishsharedGoalstofosterdesiredbehaviorStandardsbasedon“bestpractices”Servicessuchasaccounting,legal,publicrelations,internalaudit,benefitsplanning,R&D,andinformationtechnologySpacebyco-locatingemployeesOvercomingCultureClash:

AllianzAGBuysPimcoAdvisors

AllianzAG,theleadingGermaninsuranceconglomerate,acquiredPimcoAdvisorsLPfor$3.3billion,boostingassetsundermanagementfrom$400billionto$650billionandmakingitthesixthlargestmoneymanagerintheworld.Theculturaldivideseparatingthetwofirmsrepresentedapotentiallydauntingchallenge.Allianz’smanagementwaswellawarethatfirmsdistractedbycultureclashesandthemoraleproblemsandmistrusttheybreedarelesslikelytorealizethesynergiesandsavingsthatcausedthemtoacquirethecompanyinthefirstplace.Amajormotivationfortheacquisitionwastoobtainthewell-knownskillsoftheelitePimcomoneymanagerstobroadenAllianz’sfinancialservicesproductoffering.Althoughretentionbonusescanbuyloyaltyintheshortrun,employeesoftheacquiredfirmgenerallyneedmuchmorethanmoneyinthelongterm.Pimco’smoneymanagersstatedpubliclythattheywantedAllianztoletthemoperateindependently,thewayPimcoexistedundertheirformerparent,PacificMutualLifeInsuranceCompany.AllianzhaddecidednotonlytorunPimcoasanindependentsubsidiarybutalsotomove$100billionofAllianz’sassetstoPimco.BillGross,Pimco’sLegendarybondtrader,andothertopPimcomoneymanagers,nowcollectaboutone-fourthoftheircompensationintheformofAllianzstock.Moreover,mostofthetopmanagershavebeenaskedtosignlong-termemploymentcontractsandhavereceivedretentionbonuses.JoachimFaber,chiefofmoneymanagementatAllianz,playedanessentialroleinsmoothingoverculturaldifferences.LedbyFaber,topAllianzexecutiveshadbeenvisitingPimcoformonthsandhavingquietdinnerswithtopPimcofixedincomeinvestmentofficialsandtheirfamilies.TheintentoftheseintimatemeetingswastoreassuretheseofficialsthattheiroperationwouldremainindependentunderAllianz’sownership.DiscussionQuestions:1. HowdidAllianzattempttoretainkeyemployees?Intheshortrun?Inthelongrun?HowdidthepotentialforcultureclashaffectthewayAllianceacquiredPimco?3.WhatelsecouldAllianzhavedonetominimizethecultureclash?MechanismsforIntegrating

BusinessAlliancesLeadership:Establishasharedvision.Teamworkandroleclarification:EstablishteamswithclearlyidentifiedrolesandresponsibilitiesCoordination:Exertcontrolthroughcoordinationratherthanmandate.Policiesandvalues:Ensureemployeesunderstandhowdecisionsaremade.Communicatewhowillbeheldaccountableandhowrewardsaredetermined.Consensusdecisionmaking:Giveallparticipantsopportunityfor