Post Acquisition Analysis and Evaluation with Diversification Motive of Acquisition
Kevin Rosby, Dony Abdul Chalid
Universitas Indonesia
Abstract
In 2014, a company having an acquisition with the aim of diversifying the companys business portfolio. Some studies provide results that the acquirer company will usually experience a failure in the acquisition process, which results in a decrease in value for the acquiring company ("The Winner Curse"). Within 4 years after the acquisition, The acquired company was reassessed, whether it able to provide value to the acquiring company or not, and it was found that the acquired company cannot give an additional value to the acquirer company.
Keywords: Free Cash Flow, Winner Curse, Corporate Portfolio Review, Post-Acquisition Valuation
Topic: Strategic Management & Ecosystem Business