Managing Merger Risk During the Post-Selection Phase

October 5, 2013 Leave a comment

Managing Merger Risk During the Post-Selection Phase

Robert Heller Georgia State University

Pamela Ellen Georgia State University

September 20, 2013
Third Annual International Conference on Engaged Management Scholarship, Atlanta, Georgia. September 19-22, 2013. Paper 9.1

Abstract: 

Mergers and acquisitions are an important part of many companies’ strategic plans, yet they often fail to meet expectations. This may be due in part to a lack of understanding of the risks and the failure to apply a practical framework for managing them. Risk management techniques or frameworks have been developed for use in projects involving mergers and acquisitions (M&A), and many other company projects. Here we identify risks present and the risk resolutions available at this stage of the M&A process via a review of the literature and interviews with experienced managers of mergers and acquisitions. We develop a practical framework for managing post-selection phase risks in M&A. We analyzed published case studies to evaluate the framework. This research contributes to the literature by identifying and classifying the risks and risk resolutions in the post-selection phase of the M&A process and providing a practical framework for managing risks.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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