Related Concept Videos
01:25The Anchoring-and-Adjustment Heuristic
In order to make good decisions, we use our knowledge and our reasoning. Often, this knowledge and reasoning is sound and solid. However, sometimes, we are swayed by biases or by others manipulating a situation. For example, let’s say you and three friends wanted to rent a house and had a combined target budget of $1,600. The realtor shows you only very run-down houses for $1,600 and then shows you a very nice house for $2,000. Might you ask each person to pay more in rent to get the $2,000...
01:38Cognitive Dissonance
Social psychologists have documented that feeling good about ourselves and maintaining positive self-esteem is a powerful motivator of human behavior (Tavris & Aronson, 2008). In the United States, members of the predominant culture typically think very highly of themselves and view themselves as good people who are above average on many desirable traits (Ehrlinger, Gilovich, & Ross, 2005). Often, our behavior, attitudes, and beliefs are affected when we experience a threat to our...
01:52Persuasion Strategies
Researchers have tested many persuasion strategies, including the foot-in-the door and the door-in-the-face techniques, in a variety of contexts. Ultimately, the principles are effective in selling products and changing people’s attitude, ideas, and behaviors (Cialdini & Goldstein, 2004).
02:16Light Acquisition
In order to produce glucose, plants need to capture sufficient light energy. Many modern plants have evolved leaves specialized for light acquisition. Leaves can be only millimeters in width or tens of meters wide, depending on the environment. Due to competition for sunlight, evolution has driven the evolution of increasingly larger leaves and taller plants, to avoid shading by their neighbors with contaminant elaboration of root architecture and mechanisms to transport water and nutrients.
02:34Water and Mineral Acquisition
Specialized tissues in plant roots have evolved to capture water, minerals, and some ions from the soil. Roots exhibit a variety of branching patterns that facilitate this process. The outermost root cells have specialized structures called root hairs that increase the root surface, thus increasing soil contact. Water can passively cross into roots, as the concentration of water in the soil is higher than that of the root tissue. Minerals, in contrast, are actively transported into root cells.
01:26Equity Theory
Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...
You might also read
Related Articles
Articles linked to this work by shared authors, journal, and citation graph.
Sort by
Same author
Ecological speciation in sympatric palms: 2. Pre- and post-zygotic isolation.
Journal of evolutionary biology·2016
Related Experiment Video
Updated: Jul 27, 2026
12:49
Quantification of Site-specific Protein Lysine Acetylation and Succinylation Stoichiometry Using Data-independent Acquisition Mass Spectrometry
Published on: April 4, 2018
Are you paying too much for that acquisition?
R G Eccles1, K L Lanes, T C Wilson
1Advisory Capital Partners, Jupiter, FL, USA.
Harvard Business Review
|October 28, 1999
Summary
Most company acquisitions fail to create value because acquirers overpay. Determining the optimal purchase price requires calculating synergy value and maintaining discipline to walk away from unprofitable mergers and acquisitions.
Area of Science:
- Business Strategy
- Corporate Finance
- Mergers and Acquisitions
Background:
- Despite decades of evidence, most corporate acquisitions do not generate value for acquiring firms.
- Executives continue to pursue an increasing number of, and larger, acquisition deals annually.
Purpose of the Study:
- To present a systematic method for determining the optimal acquisition price.
- To identify key factors influencing the justification of acquisition prices.
Main Methods:
- Analysis of acquisition pricing strategies.
- Calculation of "synergy value" as a determinant of maximum justifiable price.
- Emphasis on disciplined decision-making in mergers and acquisitions.
Main Results:
- Acquirers often pay more than an acquisition is worth intrinsically.
- The maximum justifiable price is directly correlated with the potential synergy value generated by combining companies.
- Failure to create value is often due to overpayment rather than absolute price.
Conclusions:
- A systematic approach to valuation, focusing on synergy, is crucial for successful acquisitions.
- Corporate governance must incorporate discipline to ensure acquisitions meet financial return expectations.
- Future acquisition returns depend on implementing practical, value-driven M&A processes.