Successful Foreign Acquisitions (eBook)

Cover 1
Copyright 3
Contents 4
Executive Summary 6
1. Introduction 12
2. Literature Review – Anglo- German Differences 16
2.1 GAAP 18
2.2 The accounting profession 20
2.3 The concept of cost in Germany 21
2.5 Capital markets 26
2.6 Corporate governance 27
2.7 Co-determination 28
2.8 German managers, organisational structure and rewards 30
3. Literature Review – the Acquisitions Process 32
4. The Research Framework 38
5. Case Study One – UK Parent and German Subsidiary 42
5.1 Background information on the companies and the strategic motivation for the acquisition 44
5.2 Analysis of the acquisition strategy 45
5.3 UKP’s management control system and implementing the strategy 48
5.4 Review of the actual management control system 52
5.5 Culture: Anglo-German differences 60
5.6 Conclusions 64
6. Case Study Two – German Parent and UK Subsidiary 68
6.1 Background information on the companies and the strategic motivation for the acquisition 70
6.2 Analysis of the acquisition strategy 72
6.3 The management control system and implementing the strategy 73
6.4 Review of the actual management control system 75
6.5 Budgetary control 80
6.6 Incentive arrangements 85
6.7 Culture: Anglo-German differences 87
6.8 Conclusions 88
7. Discussion and Conclusions 92
7.1 Corporate strategy and management accounting 94
7.2 Initial organisational control 94
7.3 Achieving effective control 95
7.4 Management accounting in cross-border acquisitions 95
7.5 Foreign exchange issues 96
7.6 Culture 98
8. Lessons to be Learnt from the Case Studies 102
Appendices 108
Appendix 1 – Sources of Information about Germany 110
Appendix 2 – DM:£ Spot (Mid) Quarterly Exchange Rate ( 1991– 98) 111
Appendix 3 – Personnel Interviewed 112
Appendix 4 – Budgetary Control at UKP and GS 114
Appendix 5 – The Finance Function at GP 117
References 118
Index 124