Praeger Strategic Corporate Alliances: A Study of the Present, A Model for the Future

In a timely and important contribution to the management literature, Louis Nevaer and Steven Deck take a careful, critical look at the various forms of corporate restructurings prevalent today-alliances, mergers, and acquisitions-and at their long-term implications for the structure of corporate America. Taking issue with those who see the takeover frenzy as revitalizing American industry, the authors argue that instead the takeover business is weakening American industry and accelerating America's decline in the global economy. They analyze the opportunity costs being incurred by both individual firms and the entire nation through the wave of takeover activity in the 1980s, demonstrating that the large debts taken on by corporate America to either finance or fend off takeovers has hampered America's ability to compete effectively in world markets. The authors then identify the essential criteria for a truly successful alliance, merger, or acquisition and suggest models for such restructurings in the future. Divided into five principal sections, the volume begins by examining the failure of current alliance, merger, and acquisition strategies. The authors discuss the economic effects of restructurings on stakeholders and employees and look at the post-acquisition financial performance of the new corporate entities. The next three sections present in-depth analyses of alliances, mergers, and acquisitions. For each type of restructuring, the authors identify and assess the management strategies commonly pursued and offer extended case-study examples of failed and successful strategies. In the final section, the authors point the way toward more effective strategic alliances. They explore selection strategies that can help ensure a successful alliance, discuss the critical area of market planning, and offer a model for the future based upon the real-world alliance between Vulcan Materials and Calizas Industriales del Carmen. Investment bankers, corporate executives, and mergers and acquisitions specialists will find this a balanced and constructive critique of the process of corporate restructuring that is today such an integral feature of the contemporary business scene. Review ?The issue of whether corporate mergers and acquisitions provide any real and lasting benefit or are detrimental to American industry and the economy remains controversial. Although more and more observers have argued the latter position in the periodical literature, this volume is one of the few booklength works to argue the case against frenetic merger and acquisition activity. The authors survey existing literature and examine arguments on both sides of the issue, concluding that the recent wave of mergers and acquisitions is jeopardizing America's position on the global economy. The book is well documented throughout and contains a bibliography. An excellent addition to any library serving graduate or undergraduate management students or professional audiences.?-Choice "The issue of whether corporate mergers and acquisitions provide any real and lasting benefit or are detrimental to American industry and the economy remains controversial. Although more and more observers have argued the latter position in the periodical literature, this volume is one of the few booklength works to argue the case against frenetic merger and acquisition activity. The authors survey existing literature and examine arguments on both sides of the issue, concluding that the recent wave of mergers and acquisitions is jeopardizing America's position on the global economy. The book is well documented throughout and contains a bibliography. An excellent addition to any library serving graduate or undergraduate management students or professional audiences."-Choice About the Author LOUIS E.V. NEVAER is Director of Political Analysis at International Credit Monitor, a consulting firm specializing in political risk assessments, of which he is co-fou