(Gibson D. Lewis Center for Business and Economic Development, 2005-03-15) Kiessling, Timothy S.; Richey, R. Glenn
Trillions of dollars are spent annually on international acquisitions and often
these acquisitions are considered a failure in regard to performance. The importance of valuation of an international target firm cannot be underestimated, especially in the global market where networks of strategic alliances are required to compete. For international acquisitions - the value of the firm is often its network of relationships. Thus, the valuation by the acquiring firm takes on new - more complex - dimensions than simply reviewing the Balance Sheet and income Statement results. This manuscript explores the valuation of international target acquisitions when the intangible value is its network of strategic alliances. Additionally, the manuscript employs theory and grounded examples to develop a theoretical model for future examination.