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