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makes strategic and financial sense. Only then can they hope to overcome history, human nature, and
the odds against successfully creating shareholder value through mergers and acquisitions.
Internet Links
Notes
1 The term private equity refers to the sources of these firms‟ capital, not the type of companies in
which they invest. Private equity firms raise capital from pension funds, endowments, foundations,
hedge funds, and wealthy individuals—all nonpublic sources. Private equity firms invest in both
public and private companies.
2 Chapter 7 of Weston et al. (1998) provides a concise summary of and more detail on empirical tests
of M&A performance. More recent confirmation of these data is in Andrade et al. (2001) and Bhagat
et al. (2005).
3 See, for example, Andrade, Mitchell, and Stafford (2001) and Rossi and Volpin (2004).
4 http://en.wikipedia.org/wiki/Cisco_Systems_acquisitions; data downloaded January 19, 2008.
5 Merger & Acquisition Integration Excellence (Chapel Hill, NC: Best Practices, LLC, 2000.
6 TheDeal.com, December 1, 2008,
www.thedeal.com/corporatedealmaker/2008/12/two_kinds_of_integration.php (downloaded January
19, 2008).
7 Ibid.