Cover -- Title Page -- Copyright -- Contents -- Preface -- Part I Background -- Chapter 1 Introduction -- Recent M&A Trends -- Terminology -- Valuing a Transaction -- Types of Mergers -- Merger Consideration -- Merger Professionals -- Merger Arbitrage -- Leveraged Buyouts and the Private Equity Market -- Corporate Restructuring -- Merger Negotiations -- Merger Agreement -- Merger Approval Procedures -- Deal Closing -- Short-Form Merger -- Freeze-Outs and the Treatment of Minority Shareholders -- Reverse Mergers -- Holding Companies -- Chapter 2 History of Mergers -- Merger Waves -- What Causes Merger Waves? -- First Wave, 1897-1904 -- Second Wave, 1916-1929 -- The 1940s -- Third Wave, 1965-1969 -- Trendsetting Mergers of the 1970s -- Fourth Wave, 1984-1989 -- Fifth Wave -- Sixth Merger Wave -- Chapter 3 Legal Framework -- Laws Governing Mergers, Acquisitions, and Tender Offers -- Other Specific Takeover Rules in the United States -- International Securities Laws Relating to Takeovers -- U.S. State Corporation Laws and Legal Principles -- State Antitakeover Laws -- Regulation of Insider Trading -- Antitrust Laws -- Measuring Concentration and Defining Market Share -- European Competition Policy -- Chapter 4 Merger Strategy -- Growth -- Synergy -- Operating Synergy -- Diversification -- Types of Focus Increases -- Focus Increasing Asset Sales Increase Firm Values -- Explanation for the Diversification Discount -- Do Diversified or Focused Firms Do Better Acquisitions? -- Other Economic Motives -- Hubris Hypothesis of Takeovers -- Do Managerial Agendas Drive M&A? -- Other Motives -- Part II Hostile Takeovers -- Chapter 5 Antitakeover Measures -- Management Entrenchment Hypothesis versus Stockholder Interests Hypothesis.

Rights of Targets Boards to Resist: United States Compared to the Rest of the World -- Preventative Antitakeover Measures -- Changing the State of Incorporation -- Active Antitakeover Defenses -- Information Content of Takeover Resistance -- Chapter 6 Takeover Tactics -- Preliminary Takeover Steps -- Tender Offers -- Advantages of Tender Offers over Open Market Purchases -- Proxy Fights -- Chapter 7 Hedge Funds as Activist Investors -- Macroeconomic Foundations of the Growth of Activist Funds -- Hedge Funds as Acquirers -- Part III Going-Private Transactions and Leveraged Buyouts -- Chapter 8 Going-Private Transactions and Leveraged Buyouts -- Terminology -- Historical Trends in LBOs -- Management Buyouts -- Conflicts of Interest in Management Buyouts -- U.S. Courts' Position on Leveraged Buyout Conflicts -- Financing for Leveraged Buyouts -- Returns to Stockholders from LBOs -- Returns to Stockholders from Divisional Buyouts -- Empirical Research on Wealth Transfer Effects -- Protection for Creditors -- Intra-industry Effects of Buyouts -- Chapter 9 The Private Equity Market -- History of the Private Equity and LBO Business -- Private Equity Market -- Secondary Market for Private Equity Investments -- Chapter 10 The Junk Bond and the Leveraged Loan Market and Stapled Financing -- History of the Junk Bond Market -- Leveraged Loan Market -- Stapled Financing -- Part IV Corporate Restructuring -- Chapter 11 Corporate Restructuring -- Divestitures -- Divestiture and Spin-Off Process -- Market Liquidity and the Decision to Divest a Unit -- Round-Trip Wealth Effects -- Wealth Effects of Sell-Offs -- Managerial Ownership and Sell-Off Gains -- Activists and Sell-Offs -- Shareholder Wealth Effects of Spin-Offs: U.S. versus Europe -- Equity Carve-Outs -- Voluntary Liquidations or Bust-Ups -- Tracking Stocks.

Master Limited Partnerships and Sell-Offs -- Chapter 12 Restructuring in Bankruptcy -- Types of Business Failure -- Causes of Business Failure -- Bankruptcy Trends -- U.S. Bankruptcy Laws -- Reorganization versus Liquidation -- Reorganization Process -- Benefits of the Chapter 11 Process for the Debtor -- Prepackaged Bankruptcy -- Workouts -- Corporate Control and Default -- Liquidation -- Investing in the Securities of Distressed Companies -- Chapter 13 Corporate Governance -- Structure of Corporations and Their Governance -- Golden Parachutes -- CEO Severance Payments -- Reform of Excesses of Golden Parachutes and Severance Payments -- Managerial Compensation, Mergers, and Takeovers -- CEO Compensation and Power -- Compensation Characteristics of Boards That Are More Likely to Keep Agency Costs in Check -- Role of the Board of Directors -- Regulatory Standards for Directors -- Antitakeover Measures and Board Characteristics -- Disciplinary Takeovers, Company Performance, CEOs, and Boards -- Merger Strategy and Corporate Governance -- CEO Compensation and M&A Programs -- Do Boards Reward CEOs for Initiating Acquisitions and Mergers? -- CEO Compensation and Diversification Strategies -- Agency Costs and Diversification Strategies -- Interests of Directors and M&As -- Managerial Compensation and Firm Size -- Corporate Control Decisions and Their Shareholder Wealth Effects -- Does Better Corporate Governance Increase Firm Value? -- Corporate Governance and Competition -- Executive Compensation and Postacquisition Performance -- Mergers of Equals and Corporate Governance -- Chapter 14 Joint Ventures and Strategic Alliances -- Contractual Agreements -- Comparing Strategic Alliances and Joint Ventures with Mergers and Acquisitions -- Joint Ventures -- Strategic Alliances -- Chapter 15 Valuation.

Valuation Methods: Science or Art? -- Managing Value as an Antitakeover Defense -- Benchmarks of Value -- How the Market Determines Discount Rates -- Valuation of the Target's Equity -- Marketability of the Stock -- Takeovers and Control Premiums -- Valuation of Stock-for-Stock Exchanges -- Shareholder Wealth Effects and Methods of Payment -- Exchange Ratio -- Fixed Number of Shares versus Fixed Value -- Merger Negotiations and Stock Offers: Halliburton vs Baker Hughes -- International Takeovers and Stock-for-Stock Transactions -- Desirable Financial Characteristics of Targets -- Chapter 16 Tax Issues in M&A -- Financial Accounting for M&As -- Taxable versus Tax-Free Transactions -- Tax Consequences of a Stock-for-Stock Exchange -- Asset Basis Step-Up -- Changes in the Tax Laws -- Role of Taxes in the Merger Decision -- Role of Taxes in the Choice of Sell-Off Method -- Organizational Form and M&A Premiums -- Capital Structure and Propensity to Engage in Acquisitions -- Leverage and Deal Structure -- Taxes as a Source of Value in Management Buyouts -- Miscellaneous Tax Issues -- Glossary -- Index -- EULA.