Mergers, Aquisitions, Hostile Takeover, etc - Slides l2

Preservation

Haspeslagh. P. C. and Jemison D. B.

(1991). Managing acquisitions: creating

value through corporate renew. New

York: MacmillanNeed for strategicinterdependence

HighLow

High

Need for

organizational

autonomy

LowPreservation Symbiosis Holding Absorption

In preservation acquisitions there is a high need for autonomy and

a low need for interdependence among combining firms. In such

situations the primary task of management is to keep the source of

acquired benefits intact, because deterioration in the acquired

company’s ways of managing, practices, or even motivation would

endanger success (