Restructuring American Corporations: Causes, Effects, and Implications

(Hardback)

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Written for financial and management executives, this volume provides an examination of the restructuring of American business which has resulted from a spate of large-scale mergers, acquisitions, takeovers, and buyouts. As Alkhafaji notes at the outset, mergers and acquisitions are not new to the American business scene. However, the huge dollar value of recent transactions, such as the RJR/Nabisco buyout and the fact that large corporations once thought to be safe from takeover attempts are now potential targets, has given the process heightened impact. Alkhafaji explores the reasons for the increasing popularity of takeovers, mergers and buyouts; who benefits from and who is affected by these strategies; who loses and who wins in the process; the international aspects of corporate restructuring; and the future implications for financial and senior managers. In addition to examining the impact of corporate restructuring on the economy, the corporation, and the individual employee, Alkhafaji provides information for the executive involved in the buyout process. He explains the various characteristics of companies that prompt merger and takeover actions, provides a rationale for the rapid increase in such activities, presents strategies that management should use before, during and after the buyout, offers a comprehensive guide to what is involved in the restructuring process, and discusses the stages of mergers, takeovers, and buyouts to help managers understand the process better. The author also shows why buyouts have now become popular in the international marketplace. A review of the available literature includes many illustrative real world examples, and the author's own empirical studies are included to demonstrate management perceptions toward different aspects of the restructuring process.

Reviews

This extensive restructuring of American corporations during the 1980s has dramatically altered the organization of business in the US. Alkhafjai presents a scholarly and thorough survey of the many issues associated with this corporate evolution. Restructuring as viewed in this book includes mergers, takeovers, buyouts, ESOPs, and acquisitions. All these activities are examined in a series of chapter-length essays that constitute the heart of the book. The analysis focuses on managerial and organizational issues. Only weakly examined are the many economic questions generated by restructuring such as agency conflicts, risk shifting, and wealth transfers between claimholders. The book's extension of restructuring to include international markets is especially interesting. Alkhafaji's analysis of European privatization and the role of global financial intermediaries such as the World Bank and the International Monetary Fund will prove highly useful as the Eastern bloc markets continue to emerge. The author also discusses various managerial strategies and responses suitable over the course of a corporate restructuring; this commentary may be the best in the entire book. Excellent chapter-end bibliographies reflect both academic and practitioner contributions. Highly readable and conveniently organized, this book is a worthwhile acquisition for both corporate and academic libraries.-Choice
"This extensive restructuring of American corporations during the 1980s has dramatically altered the organization of business in the US. Alkhafjai presents a scholarly and thorough survey of the many issues associated with this corporate evolution. Restructuring as viewed in this book includes mergers, takeovers, buyouts, ESOPs, and acquisitions. All these activities are examined in a series of chapter-length essays that constitute the heart of the book. The analysis focuses on managerial and organizational issues. Only weakly examined are the many economic questions generated by restructuring such as agency conflicts, risk shifting, and wealth transfers between claimholders. The book's extension of restructuring to include international markets is especially interesting. Alkhafaji's analysis of European privatization and the role of global financial intermediaries such as the World Bank and the International Monetary Fund will prove highly useful as the Eastern bloc markets continue to emerge. The author also discusses various managerial strategies and responses suitable over the course of a corporate restructuring; this commentary may be the best in the entire book. Excellent chapter-end bibliographies reflect both academic and practitioner contributions. Highly readable and conveniently organized, this book is a worthwhile acquisition for both corporate and academic libraries."-Choice

Author Bio

ABBASS F. ALKHAFAJI is Associate Professor of Management at Slippery Rock University. His previous works include A Stakeholder Approach to Corporate Governance (Quorum, 1989), and he is co-author of International Management Challenge. He is the editor of the International Academy of Management and Marketing Proceedings, Management Magazine, and International Consumer Marketing News.