International Acquisitions From A Network Perspective and Market Based Competencies

Abstract

Trillions of dollars are spent annually on international acquisitions and oftenthese acquisitions are considered a failure in regard to performance. The importanceof valuation of an international target firm cannot be underestimated,especially in the global market where networks of strategic alliances are requiredto compete. For international acquisitions - the value of the firm is often itsnetwork of relationships. Thus, the valuation by the acquiring firm takes on new- more complex - dimensions than simply reviewing the Balance Sheet andIncome Statement results. This manuscript explores the valuation of internationaltarget acquisitions when the intangible value is its network of strategic alliances.Additionally, the manuscript employs theory and grounded examples to developa theoretical model for future examination.