Lessons from the flipside: How do acquirers learn from divestitures to complete acquisitions?

• Main Authors: Đoàn, Thu Trang, Sahib, PadmaRao, Witteloostuijn, Arjenvan
• Other Authors: Khoa Quốc tế, ĐHQGHN
• Format: Article
• Language: English
• Published: Elsevier 2019
• Subjects: Acquisitions; Divestitures; Organizational learning; Pre-integration process; Vicarious learning
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/64798
• Institution: Vietnam National University, Hanoi

We examine whether experience from prior divestitures is associated with higher completion likelihood in subsequent acquisitions. We argue that through divestitures, firms could extract meaningful knowledge that is helpful for completing their acquisitions, such as a general understanding of acquisi...