The Art of Capital Restructuring: Creating Shareholder Value through Mergers and Acquisitions

602 Pages·2011·4.84 MB·English

by  H. Kent Baker

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THE ART
OF CAPITAL
RESTRUCTURING
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THE ART
OF CAPITAL
RESTRUCTURING
Creating Shareholder
Value through Mergers
and Acquisitions
H. Kent Baker
Halil Kiymaz
TheRobertW.KolbSeriesinFinance
JohnWiley&Sons,Inc.
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Copyright (cid:2)c 2011 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
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LibraryofCongressCataloging-in-PublicationData:
Theartofcapitalrestructuring:creatingshareholdervaluethroughmergersand
acquisitions/H.KentBakerandHalilKiymaz,editors.
p.cm.–(TheRobertW.Kolbseriesinfinance)
Includesindex.
ISBN978-0-470-56951-1(cloth);ISBN978-1-11803035-6(ebk);ISBN978-1-11803033-2
(ebk);ISBN978-1-11803034-9(ebk)
1.Consolidationandmergerofcorporations. 2.Corporatereorganizations.
3.Corporategovernance. 4.Corporations–Valuation. I.Baker,H.Kent(HaroldKent),
1944– II.Kiymaz,Halil,1964–
HG4028.M4A782011
658.1’62
2010047236
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
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Contents
Acknowledgments ix
1 Mergers,Acquisitions,andCorporateRestructuring:
AnOverview 1
H.KentBakerandHalilKiymaz
PART I Background
2 MergerWaves 17
JarradHarford
3 TakeoverRegulation 39
MarinaMartynovaandLucRenneboog
4 CorporateGovernanceandM&As 57
FeiXie
5 EthicalandSocialIssuesinM&As 71
RobertW.McGee
6 TheoreticalIssuesonMergers,Acquisitions,
andDivestitures 87
AbdulH.Rahman
7 TheShort-TermandLong-TermPerformanceofM&As 105
ShantanuDuttaandSamirSaadi
PART II Valuation
8 StandardValuation MethodsforM&As 127
PabloFernandez
v
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vi Contents
9 RealOptionsandTheirImpactonM&As 151
HemanthaHerathandJohnS.JaheraJr.
10 TheLawandFinanceofControlPremiums
andMinorityDiscounts 169
HelenBowers
11 Cross-BorderValuationEffectsinDeveloped
andEmergingMarkets 185
WenjieChen
PART III The M&A Deal Process
12 SourcesofFinancingandMeans
ofPaymentinM&As 205
MarinaMartynovaandLucRenneboog
13 CulturalDueDiligence 223
RonaldF.PiccoloandMaryBardes
14 NegotiationProcess,BargainingArea,
andContingentPayments 243
WilliamA.Grimm
15 MergerNegotiations:TakeoverProcess,Selling
Procedure,andDealInitiation 261
NihatAktasandEricdeBodt
16 PostacquisitionPlanningandIntegration 281
OlimpiaMeglioandArturoCapasso
17 OrganizationalandHumanResource
IssuesinM&As 297
SiddharthaS.Brahma
PART IV Takeovers and Behavioral Effects
18 TakeoverStrategies 323
Shailendra(Shail)Pandit
19 DefensiveStrategiesin Takeovers 339
ChristianRauchandMarkWahrenburg
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CONTENTS vii
20 TheImpactofRestructuringonBondholders 359
LucRenneboogandPeterG.Szilagyi
21 BehavioralEffectsinM&As 385
JensHagendorff
PART V Recapitalization and Restructuring
22 FinancialRestructuring 401
OtgontsetsegErhemjamtsandKartikRaman
23 GoingPrivateandLeveragedBuyouts 419
OnurBayar
24 InternationalTakeoversandRestructuring 437
RitaBiswas
PART VI Special Topics
25 JointVenturesandStrategicAlliances:
AlternativestoM&As 461
TomasManteconandJamesA.Conover
26 FairnessOpinionsinM&As 483
StevenM.Davidoff,AnilK.Makhija,andRajeshP.Narayanan
27 HowInitialPublicOfferingsAffectM&AMarkets:
TheDualTrackingPhenomenon 495
RobertoRagozzinoandJeffreyJ.Reuer
28 TheDiversificationDiscount 511
SeoungpilAhn
29 PartialAcquisitions:MotivationandConsequences
onFirmPerformance 527
PengchengZhuandShantanuDutta
AnswerstoEnd-of-ChapterDiscussionQuestions 545
Index 581
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