Is Your Board Stuck in the Wrong Gear?
Effective boards shift between passive, mentor, partner and control modes to optimize engagement.
Content: Article | Authors: Laurence Capron, Timothy Rowley | Source: INSEAD Knowledge | Subject: Corporate Governance
How to Grow Your Company
These five rules will help bulletproof your growth strategy.
Content: Article | Authors: Laurence Capron, Will Mitchell | Source: Chief Executive | Subjects: Management, Strategy
The Private M&A
Sixty to 70 percent of U.S. acquisitions—even more in Europe and Asia—are private, yet there has been little research on M&A activity involving private firms. Most appraisers agree that a minority interest in a privately held company typically sells for less than a minority interest in a similar publicly traded company (a difference known as the discount for lack of marketability or “illiquidity discount”), and … [ Read more ]
Content: Article | Author: Laurence Capron | Source: Chief Executive | Subject: Mergers & Acquisitions
Mergers and Acquisitions: Reducing the Private Firm Discount
Owners of private companies normally sell their shares at a 20-30 per cent discount during mergers and acquisitions. The ‘private firm discount’ is one reason the stock market reacts more favorably when companies announce a private acquisition than when the target is a publicly-listed firm.
From the buyer’s point of view, says INSEAD Associate Professor of Strategy Laurence Capron, the discount reflects a presumed higher risk … [ Read more ]
Content: Article | Author: Laurence Capron | Source: INSEAD Knowledge | Subjects: Finance, Mergers & Acquisitions
MobilCom AG: Countdown to Liberalisation
MobilCom has an ear for its business – the reselling of mobile phones – and its sharp senses have also picked up on a diversification opportunity in Germany. Should this young, successful company plunge into the action, or is the deal too much to handle too fast? In their case studies, Erol Ali Dervis and Professor Laurence Capron explain how this company handled those questions. … [ Read more ]
Content: Case Study | Authors: Erol Ali Dervis, Laurence Capron | Source: INSEAD | Subjects: Industry Specific, Strategy | Industry: Telecommunications | Company: MobilCom AG
Synergies in Horizontal Acquisitions: Benefits and Risk to Long-Term Performance
Cost or revenue synergies are meant to justify most acquisitions within the same industry. However, the greater part of them fails to achieve set objectives. Through a major research study, Professor Laurence Capron explores the drivers of acquisition performance.
Content: Article | Author: Laurence Capron | Source: INSEAD Knowledge
Managing Acquisitions to Change and Survive
Conventional wisdom is correct in recognising that poorly implemented M&As are risky, but the strategic value of successful acquisitions is underestimated. This article outlines elements of successful acquisitions by analysing the five preacquisition strategies and six post-acquisition strategies.
Content: Article | Authors: Laurence Capron, Will Mitchell | Source: European Business Forum (EBF) | Subject: Strategy