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Knowledge transfer in merger and acquisition processes in the metallurgical industry

Miskiewicz, Radoslaw (2017): Knowledge transfer in merger and acquisition processes in the metallurgical industry. Published in: (2017): pp. 1-370.

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Abstract

Knowledge and information have now become a major factor of innovation, development and competitiveness of enterprises. Therefore they are of greater and greater interest of the management. Underestimating the role of knowledge and information, and their insufficient use pose a threat to the company and can destroy its competitiveness. Knowledge has also become one of the key motives for conducting mergers and acquisitions. Merging and acquisition processes generate natural challenges and the accompanying risks both for management and shareholders, as shown by numerous publications and studies, indicating low rates of achieving the planned effects of the above-mentioned processes, as well as the very high costs of carrying them out. For many years, one of the basic means of achieving external growth by companies operating in different sectors of the economy is their amalgamation through mergers and acquisitions. As an example, a strong consolidation trend in the US banking sector, dating back to the 1920s, can be presented. Between 1960 and 1965, about 900 commercial banks were consolidated in various forms. According to S. Sudarsanam, it is generally believed that companies are acquiring or want to merge with other companies cannot provide their shareholders with benefits of this process. Similar position is taken by N. Danon-Boileau, arguing that large-scale mergers and acquisitions (over USD 1 billion) led to a decline in the value of consolidated companies, devaluating shareholders’ incomes. The combination of theoretical knowledge with experience gained through a broader economic perspective allows for a deeper insight into the details of the problem. The need to reach the smallest items was noticed by P.M. Senge, a researcher who within system approach suggested that „complex things should be investigated in their complexity”. This wisdom has been used and practically applied by the Author collecting and processing the acquired knowledge into the science and practice of economic activity.

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