Module 6: Post-acquisition integration Flashcards
1
Q
7 types of governance structures
A
Market
Licensing
Franchising
Non-equity alliance
Minor equity alliance
Joint venture
Acquisition
2
Q
Types of opportunistic behaviour
A
- Adverse selection
- Moral hazard
- Hold up
3
Q
Adverse selection
A
Misrepresentation of the resources before the contract is signed
4
Q
Moral hazard
A
Behaving inconsistently with the goals of the alliance after the contract is signed
5
Q
Hold up
A
Partner does not make the relation-specific investments agreed upon after the contract is signed.
6
Q
Preservation
A
Safeguard the cultural identity of the target
7
Q
Symbiosis
A
Both firms make equal adjustments and respect each other’s autonomy
8
Q
Holding
A
Parent merely holds ownership of the target
9
Q
Absorption
A
The two firms become one
10
Q
Two processes of integration
A
- Task integration
- Human integration
