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The Synergy Trap

How Companies Lose the Acquisition Game

by Mark L. Sirower

Free Press, 1997

Category: Finance

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The Synergy Trap

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In this summary you will learn

  • Why acquisitions usually do not benefit the acquiring companies
  • How to avoid the often-predictable losses that come from acquisition decisions
  • Why shareholders are the biggest losers in mergers and acquisitions

Why you should read The Synergy Trap

Mark L. Sirower’s thought-provoking and complex book is actually a critically acclaimed academic study that challenges the reasoning behind corporate acquisitions. Pointing out that acquisitions usually devalue the acquiring companies (a loss from which they rarely recover), Sirower delves into management fundamentals and mathematical analyses to get to the bottom of merger and acquisition problems. Three detailed appendices feature plenty of financial calculations, performance measures and data from various corporate acquisitions to back up his assertions. getabstract.com recommends this book to those involved in mergers and acquisitions and to other readers intrigued by the inside view of this "carnivorous quest."

About the Author

Mark L. Sirower  is a corporate development advisor with The Boston Consulting Group and a visiting professor at New York University’s Stern School of Business. He consults with major corporations on merger and acquisition decisions. The Synergy Trap is based on his ground-breaking Columbia University doctoral thesis, which first gained national attention when it was cited in BusinessWeek. He lives in Manhattan.

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