A01=Han T. J. Smit
A01=Thras Moraitis
Acquisition Premium
Asset
Auction
Author_Han T. J. Smit
Author_Thras Moraitis
Behavioral economics
Bidding
Bidding War
Calculation
Call option
Cash flow
Category=KFFM
Category=KJMD
Category=KJV
Category=LNCD1
Commodity
Competition
Competitive advantage
Competitive landscape
Corporate finance
Cost of capital
Cost of equity
Currency
Diversification (finance)
Divestment
Downside risk
Economics
eq_bestseller
eq_business-finance-law
eq_isMigrated=1
eq_nobargain
eq_non-fiction
Equity value
Exit Option
Finance
Financial analysis
Financial analyst
Future value
Globalization
Groupthink
Illustration
Investment
Investment strategy
Investor
Loss aversion
Market power
Market price
Market value
Mergers and acquisitions
Net present value
Opportunism
Opportunity cost
Option (finance)
Option value (cost–benefit analysis)
Organic growth
Positioning (marketing)
Present value
Pricing
Private equity
Profit (economics)
Public company
Rationality
Real options valuation
Relative valuation
Relative value (economics)
Senior management
Share price
Shareholder
Shareholder value
Strategic management
Strategy
Strike price
Takeover
Target Firm
Trade-off
Uncertainty
Valuation (finance)
Valuation Analysis
Value (economics)
Vodafone
Xstrata
Product details
- ISBN 9780691140001
- Weight: 454g
- Dimensions: 152 x 235mm
- Publication Date: 18 Jan 2015
- Publisher: Princeton University Press
- Publication City/Country: US
- Product Form: Hardback
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It is widely accepted that a large proportion of acquisition strategies fail to deliver the expected value. Globalizing markets characterized by growing uncertainty, together with the advent of new competitors, are further complicating the task of valuing acquisitions. Too often, managers rely on flawed valuation models or their intuition and experience when making risky investment decisions, exposing their companies to potentially costly pitfalls. Playing at Acquisitions provides managers with a powerful methodology for designing and executing successful acquisition strategies. The book tackles the myriad executive biases that infect decision making at every stage of the acquisition process, and the inadequacy of current valuation approaches to help mitigate these biases and more realistically represent value in uncertain environments. Bringing together the latest advances in behavioral finance, real option valuation, and game theory, this unique playbook explains how to express acquisition strategies as sets of real options, explicitly introducing uncertainty and future optionality into acquisition strategy design.
It shows how to incorporate the competitive dynamics that exist in different acquisition contexts, acknowledge and even embrace uncertainty, identify the value of the real options embedded in targets, and more. Rooted in economic theory and featuring numerous real-world case studies, Playing at Acquisitions will enhance the ability of CEOs and their teams to derive value from their acquisition strategies, and is also an ideal resource for researchers and MBAs.
Han Smit is professor of corporate finance at Erasmus University Rotterdam. He is the coauthor of Strategic Investment: Real Options and Games (Princeton). Thras Moraitis is a cofounder of X2 Resources, a privately funded mining and metals investment vehicle.
