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The Liquidation/Merger Alternative
By Michael J. Peel
2003/01 - Beard Books
1587981572 - Paperback - Reprint -  204 pp.
US$34.95

Peel has written a penetrating analysis of numerous determinants and has assembled an impressive bibliography, making this book essential reading for the serious student of financial management and the entrepreneur faced with making merger decisions.

Publisher Comments

Categories: Banking & Finance

Of Interest:

A Not-So-Tender Offer

Dangerous Pursuits: Mergers and Acquisitions in the Age of Wall Street

Leveraged Management Buyouts

Macy's for Sale

Managing the Merger: Making It Work

Merger: The Exclusive Inside Story of the Bendix-Martin Marietta Takeover War

Takeover: The New Wall Street Warriors: The Men, the Money, the Impact

The Corporate Merger

The General Mills/Parker Brothers Merger: Playing by Different Rules

The Human Side of Mergers and Acquisitions: Managing Collisions Between People, Cultures, and Organizations

The ITT Wars: An Insider's View of Hostile Takeovers

The Titans of Takeover

Transnational Mergers and Acquisitions in the United States

Welcome to Our Conglomerate -- You're Fired!

This scholarly book provides a rationale as to why specific companies that appear to be on the brink of corporate collapse are taken over rather than entering into receivership or liquidation. When this study first appeared in 1990, the bankruptcy/merger alternative had received scant attention in published commentary. This book helped to fill the gap by providing new empirical evidence for the UK corporate sector as well as a number of statistical models to investigate whether it was possible to discriminate between "distressed" acquired firms and ones that failed.

From the back cover blurb:

This scholarly, well-documented book provides a rationale/theory as to why specific companies that appear to be on the brink of corporate collapse are taken over rather than entering into receivership or liquidation. When this study first appeared in 1990, the bankruptcy/merger alternative had received scant attention in published commentary, particularly in the domain of empirical research. The Liquidation/Merger Alternative helped to fill this gap by providing new empirical evidence for the UK corporate sector an a number of statistical models to investigate whether it was possible to discriminate between "distressed" acquired firms and ones that failed.

The author has written a penetrating analysis of numerous determinants and assembled an impressive bibliography, making this book essential reading for the serious student of financial management and the entrepreneur faced with making a merger decision.

BOOK REVIEWS

From Book News: 

Peel (financial management, Cardiff University, UK) provides a theory on why specific companies that appear on the brink of corporate collapse are taken over rather than entering into receivership or liquidation. The book will be of interest to students of financial management and to entrepreneurs faced with merger decisions. The book was originally published in 1990 by Avebury. Annotation (c)2003 Book News, Inc., Portland, OR

From Amazon.Com:

This is a reprint of a previously published book. It deals with providing a rationale as to why some companies that appear to be on the brink of corporate collapse are taken over rather than entering into receivership. 

ABOUT THE AUTHOR

Michael J. Peel, LLB, MBA, CDipAF, ILTM is a Solicitor and Professor of Financial Management at the Cardiff Business School, Cardiff University, UK, where he teaches undergraduate and graduate management courses. He has published widely via books, academic and professional papers, and research reports, with his current research focusing on corporate performance appraisal and business failure prediction.

TABLE OF CONTENTS

List of Tables ix
Acknowledgments xi
1. Introduction 1
Scope and aims of the book 1
Theory/cause of corporate failure 2
Failure prediction models 5
The causes of mergers: theory 7
The rationale of mergers: evidence 10
Takeover prediction models 12
Summary 15
2. Existing Theory and Evidence 16
Introduction 16
Conventional wisdom and empirical evidence 17
The regression syndrome 22
Mergers and the failing company doctrine 24
Bankruptcy avoidance and mergers 26
Bankruptcy/merger models 29
Insolvency buy-outs and industrial rescue 34
Management buy-outs 36
Corporate divestments 37
Summary 38
3. The New Study: Research Design, Methodology and Data 40
Introduction 40
Sampling procedure and data collection 41
Estimation techniques 46
Explanatory variables 48
Univariate analysis 56
Summary 60
Appendix: Univariate statistical tables 62
4. The Liquidation/Merger Alternative: Empirical Results 66
Introduction 66
Interpretation of discriminant models 67
Interpretation of logit/multilogit models 68
Traditional models 70
Distressed acquisition and solvency models 72
Liquidation/merger alternative4 models 74
Multi-group models 77
Summary 79
Appendix: Multivariate statistical tables 81
5. Mergers, Buy-outs and Divestments: Some Extensions 95
Introduction 95
Managerial motivation for mergers 98
Mergers and acquisitions: determinants and effects 101
Predicting acquisitions, buy-outs and sell-offs 111
Summary 116
6. Corporate Failure: Cause and Cure 118
Introduction 118
Corporate failure: the causes 119
Corporate failure: the cures 134
Turnaround strategies 136
Predicting corporate collapse 141
Some modelling extensions 151
Summary 154
7. An Overview 156
Some general observations 156
Some specific observations 157
Key empirical results 160
Methodological limitations 161
Suggested areas for future research 164
Concluding comments 165
Appendices 166
1. Primary data 166
2. Explanatory variables 169
Bibliography 173
Index 187

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