Corporate Groups

Jan Chadam

October 2016, 200 pp.

Open Access
ISBN 978-83-65020-18-5 PDF

Also available at EconPapers

Printed
ISBN 978-83-65020-17-8

Corporate groups are an attempt to reconcile two seemingly conflicting objectives which contemporary business entities must respond to – the requirement of incremental development arising from globalisation trends and concentration of capital on the one hand, and the agility, proactiveness and prompt decision-making – which are characteristic of smaller enterprises – that are expected from market participants on the other.

Establishing and managing Corporate Groups requires unique competences, since the consequences of decisions made in such enterprises are difficult or even impossible to be corrected. The cases of value deterioration resulting from wrong investment decisions or poorly managed integration process are nor infrequent, particularly in Merger & Acquisition projects.

Excessive acquisition premiums, unjustified sector diversification, poorly prepared and ineffectively managed integration, insufficient or improper group members coordination
constitute the commonplace management errors which imply substantial competency gaps in this domain. This book endaevors to provide solutions to these quandaries based on
applicable international practices, together with author’s own research and over 20 years’ experience earned in the management and supervisory boards of corporate groups.
The book provides guidelines on how to effectively eliminate threats to Corporate Group projects, avoid synergy traps and allow for implementation of value creation scenarios in accordance with the shareholders’ perspective.