Equity markets judge mergers, acquisitions, and alliances quickly-and often harshly. The authors’ study of 2,100 companies shows that the stock market responds sharply to announcements of mergers or alliances, that it favors some types of transactions over others, and that this market response is a good indicator of a deal’s long-term prospects. In volatile, fast-moving industries, such as electronics, software, and the mass media, alliances … [ Read more ]
Content: Article | Authors: David Ernst, Tammy Halevy | Source: McKinsey Quarterly | Subject: Strategy
New evidence suggests that the most popular routes to global success are not always reliable.
Note: written in 1993 so the early part of the article is not of much value – read on toward the bottom for useful tidbits, namely the 11 traits correlated with high performance in international markets
Content: Article | Authors: Amir Mahini, David Ernst, Ingo Theuerkauf | Source: McKinsey Quarterly | Subjects: International, Management
Are e-alliances a fad of the past? Speed and scale remain important in the post-New-Economy world, and alliances are often a faster and less capital-intensive way of gaining access to products, customers, and business capabilities than building them from scratch. But the stakes are now much higher, and the market is less forgiving. How can you raise the odds an alliance will succeed? To answer … [ Read more ]
Content: Article | Authors: David Ernst, Hugo Sarrazin, Jean-Hugues J. Monier, Tammy Halevy | Source: McKinsey Quarterly | Subject: Strategy