How to successfully leverage PE to complete cross-border M&A transactions：A multiple case study based on the network perspective

Abstract

Abstract: In recent years, several Chinese enterprises successfully leveraged PE to complete cross-border M&A transactions. However, there lack corresponding theoretical explanations. To answer this question, the exploratory multiple case study method was applied to analyze two classic cases, Lenovo united with Texas Pacific Group, New Bridge Capital and General Atlantic to merge IBM's PC business and Zoomlion united with Hony Capital, Mandarin Capital and Goldman Sachs to merge CompagniaItalianaFormeAcciaio. The findings are: M&A transaction network is key to success of cross-border M&As. The successful network exhibit the following characteristics: merger companies place themselves on the central position; in addition to merger companies, transaction networks also include PE and organizations related to PE; these agents could provide complementary capital, information and tie resources, which are critical to avoid risks and achieve success of M&A transactions.

Key words: cross-border M&A, private equity firm, M&A transaction network, resources

CLC Number:

F270
F276.7

Cui Miao, Su Jingqin. How to successfully leverage PE to complete cross-border M&A transactions：A multiple case study based on the network perspective[J]. Science Research Management, 2014, 35(9): 131-137.

References

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