Acquisition fallacies and net value added

Abstract

Outlines the basic arithmetic of value and price in mergers and acquisitions, focusing on value and ignoring short‐lived accounting effects. States company buyers must select targets in which more value can be created, Uses figures and panels to give added explanation to ideas here, and the three common acquisition fallacies are included: fanciful buying; financial engineering; and bargain purchase.

Citation

Gould, B. and Bull, R. (1998), "Acquisition fallacies and net value added", The Antidote, Vol. 3 No. 2, pp. 23-24. https://doi.org/10.1108/EUM0000000006458