Mergers and Acquisitions Basics : The Key Steps of Acquisitions, Divestitures, and Investments [Hardcover]

Michael E. S. Frankel (Author)

Book Description

Publication Date: July 28, 2005

This book will provide the answers to the questions that senior level executives have about what are M&As and the steps involved. It provides basic guidelines and lessons for going through an M&A for the first time. It explains what the key events, processes, and issues that a buyer or seller must consider during a merger or acquisition. By using this book, executives can avoid costs and sometimes fatal mistakes and maximize the financial and operational value of the deal to their companies. Chapters include: (1) Terms and Phrases: Language of the Deal, (2) Explanation of Legal Structures and Terms, (3) Strategic Transactions: Before the Deal Starts, (4) Mergers and Acquisitions: Doing the Deal, (5) Equity Investments: Doing the Deal, (6) Sellers, (7) Buyers, (8) Appendix: Checklists and Forms, Reports and Presentations, Generic Valuation Exercise

Editorial Reviews

From the Inside Flap

Mergers and acquisitions (M&As) are a vital business tool and a successful growth and expansion strategy for many large and mid-sized companies. That's why in today's complex world of M&As, executives need a reliable and easy-to-use guide to help them maximize the financial and operational value of the deal for their company by minimizing costs and avoiding potentially fatal mistakes.

Mergers and Acquisitions Basics is a complete resource packed with all the information busy executives need on:

• The nuts and bolts of M&As and the processes involved
• Basic guidelines and lessons for going through M&As for the first time
• Key events, processes, and issues that a buyer or seller must consider
• And much more!

Mergers and Acquisitions Basics provides a thorough primer and overview of the key steps and common features of strategic transactions. It offers a useful balance of detailed and user-friendly coverage that isn't afraid to have fun with a serious and complex topic. Beginning investment bankers, lawyers, and consultants can use it to develop a foundation for understanding deals before exploring a deeper expertise and specialty. Business executives and managers will find a one-stop, easy-to-read guide to help them navigate deals and understand their role in the process.

Written by a veteran executive with experience working with such leading companies as General Electric, VeriSign, General Motors, and UPS, Mergers and Acquisitions Basics explains the ins and outs of strategic transactions, as well as:

• Why a company should buy or sell
• Who the major players are and what roles they play
• What the key steps are to getting a deal done
• Where to find the most common mistakes and failures in strategic transactions

Complete with an appendix of real-world checklists, forms, and sample reports and presentations, Mergers and Acquisitions Basics is a must-have tool for CEOs, CFOs, finance executives, and other business leaders involved in strategic transactions.

From the Back Cover

Praise for Mergers and Acquisitions Basics:

"Frankel has written a book for both those new and old to the M&As game. It is an essential primer for those who wish to explore strategic transactions as a business option for growth or strategic change."
—Sam M. Farraj Senior Director, Strategy and Business Development, MCI

"M&As is a wildly complex topic. Frankel makes it understandable by focusing on the key building blocks of a deal, such as auctions, due diligence, valuation, and the closing. He takes readers to the heart of the topic at once and does not waste their time with arcane topics best left to specialists. An excellent book for readers who need a functional understanding of M&As!"
—Steven M. Bragg CFO, Premier Data Services

See all Editorial Reviews

Product Details

• Hardcover: 320 pages
• Publisher: Wiley; 1 edition (July 28, 2005)
• Language: English
• ISBN-10: 0471675180
• ISBN-13: 978-0471675181
• Product Dimensions: 9.2 x 6.3 x 1.1 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #298,577 in Books (See Top 100 in Books)
  • #65 in Books > Business & Investing > Management & Leadership > Consolidation & Merger

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Customer Reviews

Most Helpful Customer Reviews

15 of 15 people found the following review helpful:

4.0 out of 5 stars Great Introductory Material, January 12, 2006

By 

J. Fu "just your normal guy" (Berkeley, CA United States) - See all my reviews
(REAL NAME)   

This review is from: Mergers and Acquisitions Basics : The Key Steps of Acquisitions, Divestitures, and Investments (Hardcover)

As the instructor of a 1-unit, elementary course on mergers and acquisitions at the university level, I was very glad to discover this thoughtful but decidedly introductory volume on the field.

For an undergraduate business student who is already familiar with the basics of business strategy, many of the sections of the book may seem redundant and self-evident. However, I encourage you not to skip over these sections just because you don't think there's anything further to know about synergies arising from "Market Share," because oftentimes Frankel, being a true veteran of the industry, has some interesting examples embedded in the text that really drives the point home. Therein also lies my chief complaint with the book, that the examples are not presented in bold italics and highlighted at the bottom of the page as many were in Frankel's other book "Deal Teams" (which I also bought and reviewed) but are instead set in the same fontface as everything else and very difficult to locate if one were just skimming for information.

I did like the generic documents and examples appended at the back of the book, which serve their purpose well and are very practical, if brief. I definitely suggest this book for folks who are true beginners in business and finance, and select chapters (4-8, 10, 11) for students who have some knowledge but would like to learn more about the specifics of the transaction and examples of more in-depth rationale than just a bulleted list. Since that is what the book advertises itself as, I'm pleased to say that it has not misrepresented itself and I am happy with my purchase.

7 of 7 people found the following review helpful:

4.0 out of 5 stars Delivers on Its Title, August 20, 2006

By 

Diego Banducci (San Francisco, CA United States) - See all my reviews

Amazon Verified Purchase

This review is from: Mergers and Acquisitions Basics : The Key Steps of Acquisitions, Divestitures, and Investments (Hardcover)

This book delivers on the basics of mergers and acquisitions, providing a broad overview of the subject that will prove especially helpful to anyone in management facing the prospect of a merger or acquisition, whether as buyer or seller. It is clearly written by any standard (but especially so for a book on M&A), and the author is as knowledgeable as they come.

It is written from a business, rather than a legal, point of view. Readers interested in the law applicable to M&A should look elsewhere. The one feature that I wish it had were due diligence checklists, although due diligence is discussed at length throughout the text.

I rate it five stars for content, one for quality of book binding. I bought a new copy, only to find that the binding (which was inflexible) soon split, ejecting 1/5 of the pages. Given the price and the publisher (Wiley), this is disgraceful. If possible, buy a used copy. Prior readers may have loosened it up for you, and in any event, you'll be less out of pocket if it comes apart.

4 of 4 people found the following review helpful:

5.0 out of 5 stars Interested general reader and a lawyer, May 13, 2007

By 

Raymond C. Atkins (framingham, ma United States) - See all my reviews
(REAL NAME)   

This review is from: Mergers and Acquisitions Basics : The Key Steps of Acquisitions, Divestitures, and Investments (Hardcover)

The uniqueness of Frankel's book is in sharing with readers an in-depth, multi-dimensional picture of the merger and acquisition process. It is almost like a written video. The book is extremely well researched. It's assertions are documented. General statements are backed by statistical data and graphic presentations, and replete with examples, some of the author's own experience. Most importantly, the book weaves into the "hard facts" the "soft, human considerations," such as motivations, and biases that ignore important facts and conclusions.

Thus the book leads the reader through the internal processes of both buyers and sellers, from broad conceptual decision-making to necessary specific custom-made written internal documents. The discussion mirrors intellectual considerations and brings alive the people who are involved in the process, showing a thorough understanding of the emotional, non-rational but natural and self-survival pressures. Instead of biases one may call these factors the driving forces that are there and must be understood and considered.

Frankel touches on situations that would not seem as important as they truly are, such as confidentiality agreements and the impact of publicity at the various stages of the process. Thus, the pictures which emerge are rich and real. And this is done in a unique style: readable, elegant and engaging, and replete with graphic demonstrations.

Frankel's book can save beginning deal makers and deal experts the grief of unnecessary bad experiences. It can save more seasoned superiors the time and attention of doing what the book does for the reader. "Understanding the power structure within the corporation is necessary to understand not only "the corporation" but also the power shifts during the dealing process (page 19). General readers, curious to know how deals are made, may enjoy this book too.