Скачать презентацию Evolution in Mergers Acquisitions and Strategic Alliances in High-Technology Скачать презентацию Evolution in Mergers Acquisitions and Strategic Alliances in High-Technology

4cc08bc95128120354d7f7d8014be3b4.ppt

  • Количество слайдов: 30

Evolution in Mergers/Acquisitions and Strategic Alliances in High-Technology Sectors: From Alliances to Mergers “Seminaire Evolution in Mergers/Acquisitions and Strategic Alliances in High-Technology Sectors: From Alliances to Mergers “Seminaire de Recherche en Gestion” (ULG) Liège, 3 rd May 2005 Sara Villanueva-Alcántara ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

OUTLINE • Introduction & Data Sources • SA / M&A: – Definitions – Motives OUTLINE • Introduction & Data Sources • SA / M&A: – Definitions – Motives – Forms • Competition in the Semiconductor Sector • Patterns in SA /M&A in the Sector • Comparison of SA / M&A’s trends • Conclusions ULG – HEC-Liège, 3 rd May 2005 VISION 26 October 2000 Sara Villanueva Alcántara

Introduction “ Firms perceive the environment and try to shape their endowments in their Introduction “ Firms perceive the environment and try to shape their endowments in their search for knowledge ” Strategic alliances, mergers and acquisitions are seen as a portfolio of strategic agreements in which firms engage in order to become or remain competitive. ULG –HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Introduction DRAMATIC INCREASE IN SA & M&Ac in last decades SA & M&Acs are Introduction DRAMATIC INCREASE IN SA & M&Ac in last decades SA & M&Acs are seen in the literature as main vehicles for technology transfer between companies Motivations for SA & M&Acs formation have changed during the past century M&Acs increasingly used to absorb complementary technological capabilities ULG –HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

General Trends Number of Total Transactions (SA & M-Acs) Source: Thomson Financial ULG – General Trends Number of Total Transactions (SA & M-Acs) Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

General Trends M&Acs Value in US $ Source: Thomson Financial ULG – HEC-Liège, 3 General Trends M&Acs Value in US $ Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Data SDC Thomson Financial Data Base: • 1835 M&A events (Semiconductor Sector: 1985 -2000) Data SDC Thomson Financial Data Base: • 1835 M&A events (Semiconductor Sector: 1985 -2000) • 1933 SA events (Semiconductor Sector: 1985 -2000) OSIRIS Company Data Base: • 900 companies that were involved in M&A and/or SA (1985 -2000) ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Definitions I Definitions: Strategic Alliance (SA): Increase Value • Competitive Collaboration (Hamel et al, Definitions I Definitions: Strategic Alliance (SA): Increase Value • Competitive Collaboration (Hamel et al, 1989) • From minority equity holding to distribution agreements (Mitchell & Singh, 1992) • Arrangmts. to exchange, share or co-developing products (Gulati, 98) • Co-operative arrangements involving Cross border flows (Parkhe, 93) • Any governance structure involving incomplete contract between separate firms (Gomes Casseres, 1996) • Pooling of firms’ resources to achieve common goals (Hellriegel, 1996) • Voluntary cooperative agreements aimed at achieving competitive advantage (Das et al, 2000) ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Definitions II Definitions: Strategic Alliance (SA): Increase Value • Voluntary arrangements to jointly achieve Definitions II Definitions: Strategic Alliance (SA): Increase Value • Voluntary arrangements to jointly achieve individual goals • Joint Ventures (JV) • Collaborative Arrangements that do not create new entity • Cross-border & Domestic collaborations SA are voluntary cooperative inter-firm agreements aimed at achieving a competitive advantage for the partners ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Definitions III Definitions: Mergers & Acquisitions (MA): Increase Value • Tool for exploiting capabilities Definitions III Definitions: Mergers & Acquisitions (MA): Increase Value • Tool for exploiting capabilities rather than learning (Yamin, 1996) • General expression of control transfer (Ross, 1996) • Combining two companies into a new one (Weston et al, 1997) MA contribute to the corporate renewal process MA aim at increasing the value of the combined companies ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Motives I Motives: Strategic Alliance (SA): • Learning (Daniels, 98; Lei& Slocum, 92; Kogut, Motives I Motives: Strategic Alliance (SA): • Learning (Daniels, 98; Lei& Slocum, 92; Kogut, 88; Nelson and Winter, 82; Doz, 98; Eisenhardt & Schoonhoven, 96; Hagedoorn, 93) • Lowering costs (Hellriegel, 1996) • Sharing Risks by joint research and exploration (Eisendhardt et al, 96) • Creating unique combination of resources (Contractor and Lorange, 1988) • Geographical strateg. to enter new markets (Hagedoorn, 1993; Doz, 1998) • Erode Competition (Kogut, 1988) • Access new product market (Daniels, 1998) • Strategic positioning to lead an industry (Doz, 1998) • Legitimation (Eisenhardt & Schoonhoven, 96) • Isomorphism (Gulati, 95) ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Motives II Motives: Merger & Acquisition (MA): • Learning (Ashkenas et al, 1998) • Motives II Motives: Merger & Acquisition (MA): • Learning (Ashkenas et al, 1998) • Value Capture (Haspeslagh & Jemison, 1991) • Value Creation (Haspeslagh & Jemison, 91; Trautwein, 90; Weston et al, 98) • Diversification (Weston et al, 1998) • Managerial (Weston et al, 98; Mueller, 95) • Increase Market Power (Weston et al, 98) ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Forms I Forms: Strategic Alliance (SA): Equity Agreements, (Gulati, 98; Hagedoorn & Narula, 99; Forms I Forms: Strategic Alliance (SA): Equity Agreements, (Gulati, 98; Hagedoorn & Narula, 99; Das et al, 00, Tamin, 96; Hellriegel, 96) High Degree of Dependency Creation of New Entity Joint Ventures Non-equity Agreements (Duysters & Hagedoorn, 00; Hagedoorn & Narula, 99 & 94; Mowery et al, 96) Flexibility is Needed Low Level of Integration Licensing, Cross-licensing, Joint research = SA ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Forms II Forms: Mergers & Acquisitions (MA): Related MA, (Hitt et al, 1998; Lubatkin, Forms II Forms: Mergers & Acquisitions (MA): Related MA, (Hitt et al, 1998; Lubatkin, 1987; Montgomery & Wilson, 1986; Singh & Montgomery, 1987; Hagedoorn & Duysters, 2002) e. g: After Buy-Seller Relation (Hagedoorn 2000) Vertical Integration (Weston, 1997; Ross, 1996; Brealy, 1996) Unrelated MA (Duysters & Hagedoorn, 2000; Hagedoorn & Narula, 1999 & 1994; Mowery et al, 1996) Firms Non Related in terms of Product-Market (creation of largely diversified companies) ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Semiconductor Sector I Reasons for choosing the semiconductor: Tension Change Stability Technological Change in Semiconductor Sector I Reasons for choosing the semiconductor: Tension Change Stability Technological Change in products Stability of manufacturing equipments Technological Change in Design and Products: Economies of Scope ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Semiconductor Sector II Semiconductor Sector Cycles: • Peculiarity of the Sector: Price declines joined Semiconductor Sector II Semiconductor Sector Cycles: • Peculiarity of the Sector: Price declines joined by parallel increase of chip’s performance • Reason: Excess demand supply cycles of the sector Time span between R&D to market of the final chip creates excess demand supply cycles Fierce Competition reflected in high R&D expenditures High R&D => Fast Obsolescence of Existing products ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Competition in the Industry I: • MAINLY: – Price declines, – intense R&D expenditure Competition in the Industry I: • MAINLY: – Price declines, – intense R&D expenditure and – reduction of lead times • Manufacturing: – Complexity: High fix costs – Economies of Scope: in order to reduce costs – “Learning curve”pricing strategy: Results of a process of cumulative learning ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Competition in the Industry II: • Design & Process: – Due to Economies of Competition in the Industry II: • Design & Process: – Due to Economies of Scope => division of manufacturing and design – Manufacturing = Foundry (exposed to investment cycle of sector but can spread risks) Foundry – Design: Fabless (heavy investments in R&D) Fabless • Role of Small & Large Firms: – – – – Initially large firms are at the heart of the industry (e. g. Bell Labs) large Those large firms enjoyed Government support (largest semicond demand was public) Small firms entered when government demand weakened. Fast movers responding to technology change. INNOVATIVE Have got no burden on former existing technologies Maintain the competitive tension in the sector BUT…Small firms face difficulties due to: +Lack financial resources +Narrow networks… SMALL Firms SHOULD: – In order to maintain position: keep up with technology path and innovate ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

SA Patterns “Strategic Alliances are voluntary cooperative inter-firm agreements aimed at achieving a competitive SA Patterns “Strategic Alliances are voluntary cooperative inter-firm agreements aimed at achieving a competitive advantage for the partners” MODES MOTIVE Spread and Reduce Costs R&D projects / Manufacturing set ups Specialize Unrelated Industries or Technologies Avoid Competition Cross-Border SA / Standard Settings Secure Vertical and Horizontal Linkages Equity Agreements (avoid opportunism) FORMS Equity (JV) / Non-Equity (Joint Agreements) Related / Unrelated Industries R&D Agreements Manufacturing Agreem. Cross-Border Agreem. ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

SA: Equity Agreements in Semiconductors Source: Thomson Financial ULG – HEC-Liège, 3 rd May SA: Equity Agreements in Semiconductors Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

SA: Related vs. Unrelated Industry Agreements Source: Thomson Financial ULG – HEC-Liège, 3 rd SA: Related vs. Unrelated Industry Agreements Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

SA: R&D Agreements Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara SA: R&D Agreements Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

SA: Manufacturing Agreem. Manufacturing Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 SA: Manufacturing Agreem. Manufacturing Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

SA: Cross-Border Agreements Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara SA: Cross-Border Agreements Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

MA Patterns “Mergers and Acquisitions aim at increasing the value of the combined companies” MA Patterns “Mergers and Acquisitions aim at increasing the value of the combined companies” Semiconductor MAcs: MOTIVE Capturing Value Create Value (synergy) Diversification FORMS Related / Unrelated Industries Cross-Border Agreem. Market Power (in combination) ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

MA: Related vs. Unrelated Industries M&Acs Source: Thomson Financial ULG – HEC-Liège, 3 rd MA: Related vs. Unrelated Industries M&Acs Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

MA: Cross-Border M&Acs Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara MA: Cross-Border M&Acs Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Semiconductor SA - MAs High R&D costs Capital Intensive Sector Expensive equipment & scientific Semiconductor SA - MAs High R&D costs Capital Intensive Sector Expensive equipment & scientific training Short Product Life Dangers = Obsolescence Vs. Overcapacity Sector not concentrated Worldwide Economies of Scope Accumulation of Knowledge is imperative SA and M&Acs are a mean to acquire critical knowledge & resources ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

Comparison SA/MA in Sector Semiconductor’s SA-MACs trends Source: Thomson Financial ULG – HEC-Liège, 3 Comparison SA/MA in Sector Semiconductor’s SA-MACs trends Source: Thomson Financial ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara

CONCLUSIONS SA & M&Acs are seen as critical in the evolution of the sector CONCLUSIONS SA & M&Acs are seen as critical in the evolution of the sector during the last two decades. The trends have evolved together with the sector’s history Motivation for SA & M&Acs formation in the sector has also changed together with the globalization of the economy and its cycles Further Research: Study of possible links between SA partners becoming MAcs fellows based on evidence shown. ULG – HEC-Liège, 3 rd May 2005 Sara Villanueva-Alcántara