IMD-1-0307 © 2011
Bris, Arturo; Hoof, Ulf; Shah, Aamir; Swedjemark, Theodor
Baldor was among the lead producers of NEMA-compliant motors, the USA special standard, and the chance was great for ABB as the blend would permit the Zurich-based company to enhance its position in the North American market while using Baldor’s distribution network to sell ABB’s drives.
The tremendous value potential of the deal was yet endangered by the two businesses’ different cultures and the particular concern of Baldor as a family-founded company with close ties and strong values to the community. The case stops at the stage where a final offer, which is rejected by Baldor is made by ABB. The question is then the best way to continue. The case can also be utilized to exemplify the role of the due diligence team, the choice of means of payments, legal considerations in the method, and also cultural differences in the context of acquisitions.
The Baldor Acquisition case study solution
Subjects: Mergers and acquisitions; M&A
Settings: Europe; USA ; Power and automation technologies ; USD 40 billion ; 2010-2011
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