Business Commons^™

Callon Petroleum's Bid For Carrizo Oil, Woodrow D. Richardson, John Marsh

Business Faculty Research

Since the fall of the price of oil in 2015, there had been significant consolidation among unconventional oil and gas producers in Texas, so initially few were shocked when in July of 2019 directors of Callon Petroleum and Carrizo Oil & Gas announced agreement on a $3.2 billion merger. However, 9.5% of Callon Petroleum was owned by Paulson & Co., a Wall Street hedge fund that strongly disagreed with the deal. Directors had cited numerous advantages, like administrative consolidation, but the hedge fund had alleged the benefits were constructed to justify management bonuses and buy-outs. Furthermore, Paulson & Co. asserted …

Role Reversal: Exploring The M&A Process When The Family Firm Is The Acquirer, Darin Dredge

PhD in Business Administration Dissertations

Mergers and acquisitions (M&A) are a popular strategy to grow a firm. The prevalent view is that large, publicly traded non-family firms acquire much smaller, usually privately held firms, many of which are family owned. This view neglects, however, that family firms also utilize M&A to grow. Moreover, the vast majority of companies – even the largest – are family controlled. However, we know little about why and how family firms use M&A as a growth strategy. Furthermore, the M&A process – defined as pre-acquisition decision making and post-acquisition integration – is different when families take on the role of …

Merger And Acquisition Integration: Exploring Uncertainty From The Perspective Of The Middle Manager, Joseph J. Pazmany

Dissertations

Purpose. The purpose of this qualitative study was to explore middle managers’ perceptions about how organizations managed job-related, structural, and strategic uncertainty during a merger and acquisition (M&A) integration process. Furthermore, this research investigated what strategies middle managers perceived effective and ineffective for managing uncertainty and recommendations for managing uncertainty during future integrations.

Methodology. This qualitative study utilized a phenomenological research design that collected data through open-ended interviews. Fifteen middle managers participated in the study and were asked 12 questions that explored their perceptions about managing uncertainty during an M&A integration.

Findings. Overall, participants perceived strategic uncertainty …

The Linkages Among Market Structure, Market Conduct, And Service Quality: Analysis Of The U.S. Domestic Airline Industry, Amirhossein Alamdar Yazdi

Doctoral Dissertations

As supported by the dynamic structure-conduct-performance (S-C-P) paradigm, market structure affects conduct, and conduct determines firms’ performance (Mckinsey & Company Quarterly, 2008). Several researchers have looked at the S-C-P relationship with focus on price. Boreinstein, 1990; Beutel and McBride, 1992; Kim and Singal, 1993; Morrison, 1996; Veldhuis, 2005; Peters, 2006; Zhang and Round, 2009 looked at the effect of airline mergers on fares; some others have looked at the linkage between the imposition of fees and stock values (Barone, et al., 2012), ticket prices (Henrickson & Scott, 2012; Brueckner, et al., 2015); and some examine the effects of low-cost carriers …

Synopsis: Predictive Power? Textual Analysis In Mergers And Acquisitions, Philip Morgan

Marriott Student Review

No abstract provided.

Mergers: What Ethical Leaders Can Do To Help Ensure Success, Barbie Pike

The Siegel Institute Journal of Applied Ethics

Abstract

This paper looks at several research articles which include discussions on the success and failures of mergers. Mergers continue to rise in number even though there is a lack of evidence showing positive results. Though failure rates for mergers are high, there is a large amount of research showing what organizations and more specifically leaders can do to ensure the success of mergers. This paper examines things that ethical leaders can do to positively impact the introduction, transition, and outcome of mergers when considering culture, the size of the organization, diversity, conflict, change, role modeling, team building, communication, planning …

Seniority_List: A Tool To Address The Challenge Of Airline Mergers And Labor Integration, Robert Davison, Sean Edmund Rogers Ph.D.

Sean Edmund Rogers

Integrating employee groups from separate firms into a combined, well-functioning workforce presents one of the most difficult challenges in a corporate merger. This has particularly been the case in the recent airline mergers in the U.S. that have left three large legacy airlines, namely, American, Delta, and United. Carriers in these mergers have, in some cases, seen years of arbitration and litigation, employee turmoil and labor union decertification, and delays in operational integration and the realization of anticipated merger synergies. In response to this situation, this report introduces seniority_list, a computer-based tool that can be used by unions, employee groups, …

Resources Available To Managers To Manage Employees Through Mergers, Jacqueline Ann Bursey

Walden Dissertations and Doctoral Studies

The failure rate of mergers is high, with the greatest effects being felt by the employees. Company mergers result in managers burdened with extra responsibilities that often result in poor people integration management of employees. A gap in literature exists regarding people integration resources available to managers during mergers. The purpose of this phenomenological, descriptive study was to explore resources managers perceive to have available to assist with managing employees through a merger. Greenleaf's servant leadership and Herzberg's 2 factor theories were used as the study's conceptual foundation. The research questions explored managers' perceptions of the range of resources available …

Evaluating Information Technology (It) Integration Risk Prior To Mergers And Acquisitions (M&A), Deepak Khazanchi, Vipin Arora

Information Systems and Quantitative Analysis Faculty Publications

Corporate mergers and acquisitions (M&A) are considered significant, from both a strategic and an economic point of view, across almost all sectors of the economy.¹ M&A is a complex process involving risk that ranges from financial and legal matters to sales and marketing challenges and everything in between. Despite well-established benefits of strategically driven expansion and integration of businesses through M&A, the consolidated organization exposes itself to a number of anticipated, unknown and unintended risk factors. The risk concerns the overall organizational integration of some or all of the previously distinct and interdependent assets, structures, business processes, technologies, systems, …

Event Risk : Three Essays Exploring Nonprofit Organizations' Finances After The September 11 Attacks, Santiago Guerrero

Legacy Theses & Dissertations (2009 - 2024)

The three essays of this dissertation explore the experience of nonprofit organizations after the September 11 attacks to gain a better understanding of one specific type of risk nonprofit organizations face— “event risk” — which I broadly define as the risk of a negative impact on the operations of a nonprofit organization as a result of unexpected events. Essay One finds that overall nonprofit sector revenues were not reduced after the September 11 attacks and identifies characteristics of the revenue mix that make nonprofit organizations less susceptible to event risk. Essay Two identifies characteristics of nonprofit organizations’ financial conditions that …

Employee Perspectives On The Post-Integration Stage Of A Micro-Merger, Jennifer Lawlor

Articles

Purpose - This paper seeks to address the impact of an organisational change initiative on organisational employees, with specific reference to a micro-merger which occurred in a public sector, higher education organisation in Ireland. The literature on change management is examined, with specific reference to the post-integration stage of a micro-merger. The paper then reports on a study that was undertaken in an Irish higher education institution and focuses on the impact of the micro-merger on employees. Specifically, the study seeks to address their perceptions and emotions relating to a heretofore under-researched area in the merger literature, namely the impact …

Law Firm Mergers: Finding The Right Fit, Mark E. Pickering

Mark E Pickering

Mergers and acquisitions (M&A) can be an extremely valuable tool to transform organisations and to accelerate growth strategies. However, poorly conceived and implemented acquisitions can result in significant distraction, substantial financial write-offs and, in extreme cases, put the acquirer’s future in jeopardy. Directors play an important role in the M&A decision process and should delve into key components of proposed acquisitions to improve M&A outcomes.

The Strategic Assembly Of Global Firms: A Micro-Structural Analysis Of Local Learning And Global Adaptation, Mitchell P. Koza, Stephen Tallman, Aylin Ataay

Management Faculty Publications

Strategic Assembly - the comprehensive and coordinated use of internal development, mergers, acquisitions, joint ventures, and alliances - is a novel approach to the construction and management of global firms. This paper describes the role and characteristics of strategic assembly in the construction and management of the Global Multi-Business Firm, an emerging form of global organization. We present a study of Group Renault and its relationship with two key players in the lucrative and emerging market for autos in Turkey, emphasizing the coevolutionary processes through which local players enter and dominate a local market and the global parent, utilizing local …

Intra-Industry Effects Of Takeovers: A Study Of The Operating Performance Of Rival Firms, Rupendra Paliwal

WCBT Faculty Publications

This paper investigates whether the managers of industry rivals act to mitigate their agency exposure and improve operating performance when one of the firms in the industry is subject to a takeover attempt. The results indicate that rival firms in general decrease free cashflows, improve operating performance, reduce capital expenditures, and increase leverage in response to a control threat within the industry. In particular, rival firms with potentially higher agency costs i.e., fewer investment opportunities and high cash or high free cashflows exhibit a higher reduction in cash levels and free cashflows subsequent to a control threat in their industry. …

The Rationale For Mergers & Acquisitions In The U.S. Wireless Industry, Eric Pereira

Honors College Theses

The mergers between AT&T and Cingular, Sprint and Nextel, and Verizon and Alltel telecommunication companies have become the most fascinating transactions in the wireless industry. This paper provides a detailed summary of the two companies in each merger as separate entities before the merger, the actions they took while completing the merger, and the new look and strategies they put into place after the merger. The thesis provides a thorough view of how AT&T, Sprint Nextel, and Verizon successfully completed their merger plans and how they gained nationwide consumer satisfaction. The reader will examine the problems within the companies such …

Pre-Acquisition Characteristics Of The Acquirers, Rupendra Paliwal

WCBT Faculty Publications

Existing empirical literature has extensively analyzed post-acquisition performance of the acquirers to evaluate success of the takeover. The academic literature tends to agree that target shareholders benefit from takeovers; however takeovers benefits for acquiring firm’s shareholders have been questioned. A majority of empirical literature indicate acquisition announcements are associated with a decrease in acquiring shareholder’s wealth. While pre-acquisition characteristics of takeover targets have been extensively analyzed, empirical literature has not directly and comprehensively analyzed pre-acquisition financial and operating characteristics of the acquiring firms. In this paper, I examine pre-acquisition operating performance and governance characteristics of acquirers. Results suggest that bidders …

The Urge To Merge: Accounting Firm Mergers, Mark E. Pickering

Mark E Pickering

The article focuses on the significance of merger and acquisitions for accounting firms in Australia. According to the author, the expected benefits of mergers include geographic expansions, gaining scale, adding new services, gaining access to capabilities and addressing issues in one or both firms. It is stated that the possibilities of a successful merger can be developed through merger benefit adjustments, merger-fit and integration approach.

Mergers And Acquisitions - The Directors' View, Mark E. Pickering

Mark E Pickering

Mergers and acquisitions (M&A) can be an extremely valuable tool to transform organisations and to accelerate growth strategies. However, poorly conceived and implemented acquisitions can result in significant distraction, substantial financial write-offs and, in extreme cases, put the acquirer’s future in jeopardy. Directors play an important role in the M&A decision process and should delve into key components of proposed acquisitions to improve M&A outcomes.

Single Minded? : Implementing Common Financial Systems, Mark E. Pickering

Mark E Pickering

As companies grow via acquisition they collect a variety of separate and often quite diverse financial systems belonging to the newly acquired companies. While there is a substantial cost to implementing a common financial system across the merged group. Is that cost outweighed by the benefits of a single system? This article uses a case study to highlight options for different degrees of finance system commonality, potential benefits of each option and a framework for analysing the appropriate level of commonality.

Thrift Competition And Its Impact On Financial Institution Mergers And Acquisitions In The Richmond, Virginia Rma, Kenneth W. Vance

Master's Theses

Commercial banking has been subject to antitrust review for only a few decades. In 1948, the Transamerica Corporation was charged by the Board of Governors of the Federal Reserve System with a violation of Section 7 of the Clayton Act when it acquired controlling interest in several independent banks in California ⁽¹⁾. At the time of the acquisitions, the banks in question were in direct competition with one or more oof the banks already controlled by Transamerica Corporation. Moreover, Transamerica Corporation held a major interest in Bank of America. This unique case ignited a fear of probable banking concentration …