A.    Reasons for acquisitions (Figure 7.1, pg. 223)

1.    Increased market power

2.    Overcoming entry barriers

3.    Cost of new-product development

4.    Increased speed to market

5.    Lower risk

6.    Increased diversification

7.    Reshaping competitive scope

B.    Potential problems

1.    Integration difficulties

2.    Inadequate evaluation of target

3.    Large or extraordinary debt

4.    Inability to achieve synergy

5.    Too much diversification

6.    Managers overly focused on acquisitions

7.    Too large

C.    Attributes of effective acquisitions (Table 7.1, pg. 229)

A. Downsizing

B. Downscoping

D.    Leveraged buyouts

E.    Restructuring outcomes (Figure 7.2, pg. 233)

A. Identify past acquisition and/or restructuring activities at your company

B. Evaluate future acquisition and/or restructuring opportunities