Acquisition Of Technology Based Firms

The objectives of the series are to provide up to date research on a variety of aspects of High Technology Small Firm formation and growth (HTSFs) from a range of interdisciplinary perspectives.

Among several key factors affecting new technology innovation, two important ones that are sometimes disturbed by M&A are long-term p-ans and the commitment of the acquired firm's management team. M&A led by technology companies are most often motivated by their need for certain technology, and most mergers, the strategies to grow the new company are quite clear. However, when M&A are led by financial investors or non-technology-based firms like private equity or trading and investment companies, the post-merger growth strategy to develop and manage the acquired firm's technology is often not well thought out. This is generally related to their lack of capability of managing of technology which can disturb long-term R&D work. However, some M&A carried out by private equity or trading and investment company, have had positive results. This study compares three M&A cases of trading and investment companies, private equity, and technology-based companies of technology-based firms. Comparisons are made based on financial figures, the ability to manage technology, and the success of the post-merger integration process. This study concludes with three suggestions, continuous synergy creation from parent company is essential for sustainable growth, corporate culture and business synergy must be considered carefully during the integration process, and retention of R&D employees and maintaining a technology-oriented corporate culture and environment are very critical for firm's new technology innovation.

A collection of the best papers presented at the High Technology Small Firm (HTSF) Conference held in the UK at Manchester Business School in June 2007. It includes chapters that are devoted to the critical problems of HTSF financing, comprising two contributions from the UK and from Sweden, the Irish Republic, Italy, and Belgium.

The comprehensive, practical guide to buying, selling, and merging technology companies The Technology M&A Guidebook provides executives and entrepreneurs interested in acquiring or selling a technology company with everything they need to know about the entire M&A process, from identifying target companies or buyers to financial analysis, due diligence, tax issues, valuation, and legal considerations. This book explores specific issues that are unique to technology M&A: assessing the impact of technology sector high-change rates; market-driven product development; company culture issues; engineers as managers and managers as engineers; consumer and technical product differences; technology marketing issues; intellectual property considerations; Internet interaction; and more. It also provides detailed analyses of factors involved in acquiring companies from different sectors, including: * Semiconductor equipment and chip manufacturers * PC/workstation and related hardware companies * Software businesses * Data networking and telecommunications firms * Internet-related companies Don't enter the M&A process unprepared. Let The Technology M&A Guidebook help you beat the odds and make your sale or acquisition a complete success.

Technology-focused acquisitions are an important complement to the firm’s internal product development efforts. There is considerable heterogeneity when comparing individual technology-focused acquisitions – especially with respect to acquisition timing and the deal value. To resolve some of this heterogeneity the author introduces the novel distinction between performance- and functionality-focused acquisitions. He characterizes this distinction based on a theoretical analysis, a qualitative study, and turns to a sample of acquisitions in the field of artificial intelligence for the quantitative study. There are two key findings. First, performance-focused acquisitions take place earlier in a target’s life cycle than functionality-focused ones. Second, the deal value is – at a comparable stage in a target’s life cycle – higher for performance-focused acquisitions. This thesis is relevant for management scholars and managers alike: Scholars learn about the implications of the distinction between performance- and functionality-focused acquisitions on markets for technology. Managers gain insights into how this distinction may guide their strategic decision making.