This chapter provides the conceptual framework for the study. It defines and categorizes mergers and acquisitions, gives the perspective for measuring success of acquisitions (Section 2.2), discusses theories explaining the occurrence of merger and acquisition activity (Section 2.3), summarizes the global and German merger activity in the period 1990 to 2004 (Section 2.4), and describes the phases of a standardized acquisition process (Section 2.5). The theoretical basics of Sections 2.3 and 2.5 are laid out first without a distinction of the geographical focus of the transaction, before specific considerations for cross-border acquisitions are addressed.
KeywordsCash Flow Free Cash Flow Target Company Acquisition Activity Merger Wave
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