Why some CFOs make better M&A deals when chief financial officers have greater influence in the C-suite, companies are far less likely to destroy value by overpaying for acquisitions

Many companies fall into the trap of paying an excessively large premium to close an acquisition. The authors analyzed nearly 2,000 acquisitions by U.S. companies over a period of more than 20 years and found that companies were less likely to overpay if their CFO had certain characteristics that al...

Full description

Bibliographic Details
Main Authors: Karaevli, Ayse, Özcan, Serden (Author)
Format: eBook
Language:English
Published: [Place of publication not identified] MIT Sloan Management Review 2022
Edition:[First edition]
Subjects:
Online Access:
Collection: O'Reilly - Collection details see MPG.ReNa
Description
Summary:Many companies fall into the trap of paying an excessively large premium to close an acquisition. The authors analyzed nearly 2,000 acquisitions by U.S. companies over a period of more than 20 years and found that companies were less likely to overpay if their CFO had certain characteristics that allowed them to wield greater influence in strategic decision-making. Those common characteristics are markers of informal power based on a CFO’s breadth of skills, relationships, and status
Item Description:"Reprint 63417."
Physical Description:9 pages illustrations