28. Acquisitions, Mergers, and Takeovers

  1. John R. Boatright
  1. Anthony F. Buono1 and
  2. Roy A. Wiggins III2

Published Online: 13 DEC 2011

DOI: 10.1002/9781118266298.ch28

Finance Ethics: Critical Issues in Theory and Practice

Finance Ethics: Critical Issues in Theory and Practice

How to Cite

Boatright, J. R. (2010) Acquisitions, Mergers, and Takeovers, in Finance Ethics: Critical Issues in Theory and Practice, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118266298.ch28

Author Information

  1. 1

    Professor of Management and Sociology, Coordinator, Bentley Alliance for Ethics and Social Responsibility, Bentley University

  2. 2

    Professor of Finance, Director of the Bentley Microcredit Initiative, Bentley University

Publication History

  1. Published Online: 13 DEC 2011
  2. Published Print: 9 AUG 2010

ISBN Information

Print ISBN: 9780470499160

Online ISBN: 9781118266298

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Keywords:

  • acquisitions, mergers, and takeovers (AMTs);
  • hostile takeovers;
  • stakeholders

Summary

On a general level, acquisitions, mergers, and takeovers (AMTs) refer to the combination of two organizations into one larger entity and are examples of this latter type of transaction. Although the terms acquisition, merger, and takeover are often used interchangeably, there are some subtle and important differences between them. While mergers and acquisitions are often portrayed as carefully calculated strategic acts, in practice they are human transactions that can be very costly with disappointing results. A reality of AMTs is that nonexecutive employees and other stakeholders bear disproportionate risk for poor corporate results, as senior-level executives often receive multimillion-dollar payouts when an acquisition or merger is finalized. When faced with a merger or acquisition, managers must make difficult decisions concerning the nature and timing of communication to employees and other relevant publics, which are complicated by a number of legal and operational dilemmas.

Controlled Vocabulary Terms

hostile takeover; merger; stakeholders