The text argues that mergers and acquisitions are a popular strategy for businesses both in the United States and abroad. However, returns for acquiring firms do not always live up to expectations.

This exercise seeks to address this notion by analyzing, pre and post hoc, the results of actual acquisitions. By looking at the notifications of a deal beforehand, categorizing that deal, and then following it for a year, you will be able to learn about actual deals and their implications for strategic leaders and their firms.

Working in teams, identify a merger or acquisition that was completed in the last few years. This may be a cross-border acquisition or one centered in the United States. A couple of possible sources for this information are Reuters’s Online M&A section or Yahoo! Finance’s U.S. Mergers and Acquisitions Calendar.

Each team must have its M&A choice approved in advance so as to avoid duplicates.

To complete this assignment you should be prepared to answer the following questions:

1. Describe the environment for the merger or acquisition you identified at the time it was completed. Using concepts discussed in the text, focus on management’s representation to shareholders, industry environment, and the overall rationale for the transaction.

2. Did the acquirer pay a premium for the target firm? If so, how much? In addition, search for investor comments regarding the wisdom of the transaction. Attempt to identify how the market reacted at the announcement of the transaction (LexisNexis often provides an article that will address this issue).

3. Describe the transaction going forward. Use concepts from the text such as, but not limited to:

• The reason for the transaction (i.e., market power, overcoming entry barriers, etc.)

• Any problems in achieving acquisition success • Whether the transaction has been a success or not and why.

Prepare a 10- to 15-minute presentation for the class describing your findings. Organize the presentation as if you were updating the shareholders of the newly formed firm.