The book has two primary and complementary goals.

GIULIANO MUSSATI Why do mergers occur, which are their effects on social welfare and which is the best economic policy toward them? These three questions have been puzzling industrial economists since the end of the last century when the first great merger wave has come about in the US. They have returned at the centre of the stage of the theoretical and empirical economic research during the last decade when merger and acquisition activity became one of the most evident firms' activities in all industrialised countries, being fostered by some general and country specific facts. These facts have been identified in the appearance of new financial instruments facilitating fund raising by firms, in the benevolent behaviour of the authorities in charge of competition policy during the Reagan administration in the US, while inter nal market completion has become a strong incentive for European firms to reach a true continental dimension in the UE through external growth. However a robust and univocal answer to these questions has not yet been found in spite of its importance not only from the theoretical point of view, but also from the normative one. In fact the correct identification of firms' motivations in pursuing merger and acquisition operations and of their consequences on social welfare would help the choice by administra tive authorities of different possible options in competition and industrial policies.

"Every CEO and Corporate Director who has been in the path of the 'WOW! GRAB IT!' acquisition locomotive should read this book!" -- Charles R. Shoemate, Chairman and CEO, Bestfoods With global acquisition activity running into the trillions of dollars, the acquisition alternative continues to be the favorite corporate growth strategy of this generation's executives. Unfortunately, creating shareholder value remains the most elusive outcome of these corporate strategies. After decades of research and billions of dollars paid in advisory fees, why do these major decisions continue to destroy value? Building on his groundbreaking research first cited in Business Week, Mark L. Sirower explains how companies often pay too much -- and predictably never realize the promises of increased performance and competitiveness -- in their quest to acquire other companies. Armed with extensive evidence, Sirower destroys the popular notion that the acquisition premium represents potential value. He provides the first formal and functional definition for synergy -- the specific increases in performance beyond those already expected for companies to achieve independently. Sirower's refreshing nuts-and-bolts analysis of the fundamentals behind acquisition performance cuts sharply through the existing folklore surrounding failed acquisitions, such as lack of "strategic fit" or corporate culture problems, and gives managers the tools to avoid predictable losses in acquisition decisions. Using several detailed examples of recent major acquisitions and through his masterful integration and extension of techniques from finance and business strategy, Sirower reveals: The unique business gamble that acquisitions represent The managerial challenges already embedded in current stock prices The competitive conditions that must be met and the organizational cornerstones that must be in place for any possibility of synergy The precise Required Performance Improvements (RPIs) implicitly embedded in acquisition premiums and the reasons why these RPIs normally dwarf realistic performance gains The seductiveness and danger of sophisticated valuation models so often used by advisors The Synergy Trap is the first expose of its kind to prove that the tendency of managers to succumb to the "up the ante" philosophy in acquisitions often leads to disastrous ends for their shareholders. Sirower shows that companies must meticulously plan -- and account for huge uncertainties -- before deciding to enter the acquisition game. To date, Sirower's work is the most comprehensive and rigorous, yet practical, analysis of the drivers of acquisition performance. This definitive book will become required reading for managers, corporate directors, consultants, investors, bankers, and academics involved in the mergers and acquisitions arena.

Some of the most important developments of the last quarter century relate to the internationalization of financial issues: the advent of free trade areas; the efforts of the European Union in establishing a single currency; burdens of international indebtedness; and the economic growth and development of nations.International financial systems are increasingly fragile and vulnerable in the face of possible international financial shock. Exchange rate issues and other changes in financial conditions have profound consequences not only for multinational corporations which have to devise new ways of managing their global operations, but also for firms and industries at the national level.The papers in this book confront these and other problems in international finance that have arisen in recent years, seeking to identify causal linkages at the global, national and company levels.

Deals with the theme of Recovering from Financial Crisis. This book offers insight into: the surge in going-private transactions; hedge fund failures; the controversial aspects of private equity arrangements; why commodity producers (such as oil companies) choose not to hedge; and, trends in IPO activity.

This book looks at the regulatory regimes that have an impact on business and provides a number of case studies of the relationships between government and economic development around the African continent, highlighting different processes and practices. It will be of interest both to students at an advanced level, academics and reflective practitioners. It addresses the topics with regard to business-government relations and will be of interest to researchers, academics, policymakers, and students in the fields of African politics, comparative politics, public policy, business and politics, sustainable development and sustainability, economic development, and managerial economics.