Document Type

Article

Language

eng

Format of Original

24 p.

Publication Date

Summer 2003

Publisher

Acquisition Review Quarterly

Source Publication

Acquisition Review Quarterly

Source ISSN

1087-3112

Abstract

Acquisition activity persists despite evidence that acquisitions do not improve firm performance. Further, government policy toward the defense industry has advocated consolidation in the name of nominal cost savings. We explore the role acquisitions play toward technology transfer and begin to identify factors associated with acquisition success through a review of existing research on post-acquisition performance that primarily considers acquiring firm stock performance. Using this research as a foundation, we build a model to analyze post-acquisition performance using a sample of high-technology firms. Results suggest critical success factors associated with post-acquisition stock performance are poorly understood. We conclude that proactive government policy toward high-technology industry mergers and acquisitions may be misguided due to difficulty in predicting acquisition outcomes

Comments

Published version. Acquisition Review Quarterly, pp 260-283 (Summer, 2003). Permalink. © 2003 Acquisition Review Quarterly. Used with permission.

David R. King was affiliated with the U.S. Air Force at the time of publication.

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