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- Title
Using Variance Analysis to Evaluate M&A performance: examining positive and negative synergies in United's acquisition of Continental.
- Authors
Mudde, Paul A
- Abstract
This paper examines strategic trade offs in M&A. Using strategic variance analysis (SVA) to examine United Airlines acquisition of Continental Airlines, this paper demonstrates the existence of strategic trade-offs that complicate M&A research and strategies. M&As are complex strategic actions with many motives, strategic intents, and types. M&As are influenced by competing stakeholder groups. Investors and managers generally focus on M&A to improve cash flows and economic value. Regulators scrutinize horizontal acquisitions for anti-competitive effects such as reduced sales volumes and higher unit prices. Managers, while promoting the value enhancing potential of acquisitions, often fail to deliver on their predictions.
- Subjects
ANALYSIS of variance; UNITED Airlines Inc.; CONTINENTAL Airlines Inc.; SALE of business enterprises; ECONOMIC competition
- Publication
Journal of Management Policy & Practice, 2017, Vol 18, Issue 3, p28
- ISSN
1913-8067
- Publication type
Article