Leveraged Management Buyouts

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.

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.

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.

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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