Please use this identifier to cite or link to this item:
A Case Study on Business Exit Strategy Using a Sell-off Approach
M&A,Sell-off,Exit Strategy,Stakeholders,Customer Value Proposition,
|Publication Year :||2019|
Merger and acquisition (M&A, hereafter) has become a critical approach for corporate growth and transformation. Previous research on M&A mainly focused on how to make M&A decision strategically successful and post-merger integration less painful. There is, however, less discussion from the seller’s view on why and how to successfully exit from a particular business arena via sell-off approach, a gap which motivates the present study.
A sell-off often begins with an initial game plan and finding the right people to execute the plan, including an in-house team and the outside consultants. Through a series of evaluation, the seller eventually picks up a buyer with the best potential to start detailed negotiation. Nevertheless, there is often a deadlock if the buyer has a very different agenda or goal through this M&A deal. To make a sell-off successful, we proposes to find out the key deal breakers in advance and have the solutions or alternatives ready for the anticipated obstacles as early as possible. Undertaking Quantitative Strategic Planning Matrix (QSPM), this study identifies key stakeholders of M&A, including employees, customers, suppliers, and shareholders of the company, and then explore their needs and pains by using the framework suggested by Value Proposition Canvas.
Within this framework, the buyer should be considered and treated as a customer of the seller. So for a successful sell-off, the seller needs to understand the jobs to be done, pains, and gains of the buyer in order to provide value-added services, reliever their pains, and help them have the gain creators. Our research suggests that the seller provide certain types of valuable services to strike a balance among stakeholders and address their main concerns. By doing so, the resistance of stakeholders may be converted into supports to the M&A deal.
To further validate our conceptual arguments, we conduct a case study based on a Taiwanese company sells a part of its operation to a Chinese buyer and discuss how the seller go through legal procedures, regulation compliance, and to secure additional protection on the payment under the Chinese law. In particular, when facing a Chinese buyer who is also a public company listed in China’s capital market, it needs to comply with the regulations set by CSRC as well as Shanghai or Shenzhen Stock Exchange. This is thus an important piece for a successful sell-off and needs to be well-planned as part of the exit strategy. Implications of our research findings and suggestions to future research are also discussed.
|Appears in Collections:||臺大-復旦EMBA境外專班|
Files in This Item:
|3.44 MB||Adobe PDF|
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.