ACQUISITIONS AND INTANGIBLE RESOURCES: REPUTATIONS AS A MOBILE AND TRANSFERABLE ASSET

Intangible assets and reputation play a considerable and complex role in acquisitions. Targets with better reputations are more attractive, yet may fetch a premium. Though the intangibles drive many transactions, the ability of an acquirer to leverage intangibles and reputation specifically after the transaction is more problematic. Two characteristics of reputation - mobility and transferability - are introduced to reflect the degree to which a target's positive reputation may accrue to the buyer following an acquisition. Acquirer experience, hubris and cultural differences between acquirer and target may moderate the relationships between these characteristics of reputation and acquisition outcomes. Implications for practitioners are offered, including when acquiring firms should look for reputation capture vs. spillover, and when employee retention and internal communication should be the focus vs. integration and external communication.