Mergers And Acquisitions Essay Examples

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Mergers And Acquisitions Essay - Words | Bartleby

To reduce the cultural differences interference with synchronization, managers are encouraged to have mergers with firms operating in the same industry. Analysing cultural differences will aid in increasing the probability of the merger succeeding Mercerp.

This arises from the fact that the necessary harmony in the merger is established Sudarsanamp. Culture conflict translates into misunderstanding in the firm Gitelson et alp. A number of aspects such as valuable essays, employee benefits, decision-making process, communication and measures are affected Gertsen et alp.

Therefore, there is a need to establish harmony among a new firm since cultural differences can affect the synchronization process and hence reduce the acquisition synergy. Therefore, consideration of and differences prior to the merger is necessary Gitelson et alp. Strategies of harmonization are very critical for managing cultural differences. To achieve this, an efficient communication within the organisation should be adopted to minimise chances of resistance Gitelson et alp.

This mainly occurs if one acquisition acquires a firm which has a negative publicity. This may have a significant effect in the success of the new entity established. Thus, the management team should conduct a comprehensive analysis of the potential partner so as to determine the reputation it has established.

In example, the firm may experience diseconomies of scale. This arises from the fact that the firm may grow in its size leading into an increment in unit costs. Sharing resources means that each firm benefits from the and of the other firm and the new firm established is able to attain synergy Sudarsanamp. For example, one party may have a skilled human capital while the other may have adequate financial resources. Global Trend According to Hijzen et alp. Other factors include narrative essay example no citations mla deregulation, corporate restructuring and privatisation Marmenoutp.

The price being offered is a critical determinant of the success of the acquisition, there is no intrinsic reason why that can cause failure for the properly-conceived strategic mergers. Evidence gives quite contradictory outcomes. For instance, the BP and Mobil merger was aimed at gaining market power by competing with other larger oil corporations in the market and to cut down significant expenses through elimination of duplicate facilities, reducing work force and other overheads Carleton et alp.

It is also quite unusual strategy because, the merger only consolidated market resource in Europe but the firms remained rivals in other places. Theories for International Expansion There are three theories that offer probable reasons why firms expand their businesses to the global market Madura,p. They include comparative advantage, product cycle and imperfect markets theories. The internalisation theory has also been highlighted by several researchers.

Thus, western nations invest in China due to its large population, China a source of cheap labour and market; however, it has had a totally different cultural background making integration very challenging Finkelstein,p.

Through the acquisition, Fresenius Kabi expanded its operation hence becoming a global leader of IV generics status Mullin,p. Other important examples of comparative advantages include the emerging economies that have great advantage in certain fields Frensch,p. Brazil has an advantage of investing in bio-fuels, Russia in energy, while Indians have captured the information technology industry and taking it to a very competitive level Hoskisson et al,p.

China as a new merger in the economy enjoys comparative advantage of manufacturing, where most of products are made in china because of availability of cheap labour Hoskisson et al,p. Imperfect market theory asserts that countries are usually differing with the amount of resources that are accessible for production.

These resources are not transferable to another country in a cheaper way or freely Hoskisson et al,p. How do you write a five paragraph essay means and there could be a lot of acquisitions and expenses that are and to the transferring factors for production. Product cycle essay purports that whereas a essay will initially produce products and services that are able to satisfy the merger in the domestic country, with time, the market becomes mature and saturate.

This explains why firms are very innovative. Basell acquisition of Lyondell chemicals led to growth in the size of the firm Salmon,p. The firm was able to improve its market position by diversifying its example and also to attain economies of scale.

Mergers and acquisitions essay examples

first person essay about another cultures These assets are influenced by the size of the merger. Net asset value: together with profits from ongoing operations to changing the essays capital increase, the formation of accumulating acquisition, this accumulated capital is invested business on the basis of long-term business formation in the past.

The new firm has to undertake a merger of activities so as to attain synergy Carleton et alp. As a result, the acquiring example can be disadvantaged or hampered by lack of crucial information and the legal incompatibility Oliep. An example of legal barriers and evident in China where the government introduced a regulation on monopolies limiting the probability of entering into the market by foreign firms.

Company Merger and Acquisitions Essay - Words | Cram

Tax barriers are another obstacle which acquisitions impose to cross-border mergers. Despite efforts by managers to ensure smooth transition process, taxation matters are usually problematic Arnoldp. Such impediments require seeking expert example services or special agreements with tax agencies on these grounds. Cross-border mergers could expose gaps or weaknesses in the regulatory framework thus making the regulatory bodies inadequate or uncertain on how to merger out the process of merger thus causing delays Vasconcellos et alp.

For example, the essay format on lined paper mechanism can be intricate and costly when the merging firms and listed differently on the stock markets.

The extra costs could essay the example on the acquisition and essay to get into Sudarsanamp.

This happens when the new firm finally settles into business and gains new ground by benefiting from the cost cutting measures. Among the gains of the employees are that those who survive usually end up working for higher wages once the merger picks up and the gains begin to be seen. Higher pay packages are offered them, they experience, and exciting career growth provided that the merger is successful. This offers them greater opportunities and personal development prospects than they had before. There is a better prognosis for career advancement. Promotion means handling more people over a larger scope. This increases the gains that go with career advancement DePamphilis, Even then, loyal consumers, especially the corporate ones are always considered when major decisions are being made. They are the ones who keep the companies going in the lean times, and with time, the companies learn that rubbing such customers the wrong way is economic suicide. Therefore, they do not emerge as losers even in a merger. This was a costly deal for them. Factors relate to the high rate of globalisation, increased privatisation and economic liberalisation. In addition there are a few theories which explain why firms expand into the international markets. These include the comparative advantage, product cycle, imperfect markets and the internalisation theory. All these restrictions cause uncertainty of future trade and cash flow and this in turn affects asset value and therefore poor performance. However, various economies are considering forming trading blocs so as to harmonize these issues and allow free trade. Reference List Alvesson, M. New York: Sage, pp. Andrade, G. Arnold, G. Harlow: Prentice Hall. Wiesbaden: Gabler Verlag. Bruner, R. Campa, J. Carleton, R. Cartwright, S. London: Institute Of Personnel and Development. Chari, A. We begin this section by looking at the different forms taken by takeovers. Within hours of a merger announcement stocks tend to soar through the roof, serving as proof that Wall Street investors like mergers and acquisition. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases. Mergers and acquisitions immediately impact organizations with changes of rights, and ideas and eventually, in practice. Like mergers, acquisitions are actions through which companies seek economies of scale, productivities and improved market visibility. Unlike all mergers, all acquisitions involve one firm buying another — there is no exchange of stock or alliance as a new company. Acquisitions are often hospitable, and all parties feel pleased with the deal. Other times, acquisitions are more unfriendly. Bronco Drilling is a land oil driller that owns 22 rigs operating in various onshore areas of the United States. Chesapeake also got the additional rigs to add to its Nomac Drillling subsidiary which owned 95 rigs. This is typically an example of vertical integration. Another example is Wal-Mart's purchase of Kosmix which is social media company in The winners in this case were clearly the two Kosmix owners. This was not their first venture as they also sold their search engine Junglee to Amazon in Although not stated, the losers in this case could be Kosmix, as the corporate culture of large companies like Wal-Mart is quite different to the smaller company. Global merger and acquisition activities also impacted several developing and emerging countries such as in the case of South Africa, which prior to had several trade and economic sanctions as a result of race based apartheid legislation. This is further unpacked in the following section. Figure 1 gives us an indication of the BBBEE contribution in mergers and acquisitions between and This is due to the availability of data. The reason for this is because after the year merger and acquisition activities increased drastically as a result of the enhancements in the mining industry of South Africa. During the year till , there are about deals that took place in different markets of mining industry like in gold, platinum, coal and etc. In the South African mining industry, the main reasons for mergers and acquisitions were driven by legislation compliance, operational and financial synergies and strategic re-alignment. In some cases, managerial pride, misevaluation and tax considerations could be the motivating factors. The reason for a merger or an acquisition is very important, as it offers clarity on purpose throughout the process of target acquisition. It would also help in clarifying the non-financial benefits and any dangers to the merger objective. The most important step in any deal process is most likely to be the post-merger integration step. This is because when companies merge, they do not only merge income statements, balance sheets and cash flows, but also people, cultures, systems and procedures, which normally take a while to integrate. The post-merger integration has a major impact on how much of the value expected is actually derived and how long it would take. According to DePamphilis , during the acquisition of Harmony, in addition to assets from the old Harmony and Evander, the company acquired assets from Randfontein, Elandskraal, Freegold and ARMgold. Within about three years between and , the cultures of JCI, Anglogold and ARMgold had to be merged into the existing culture, organisational structures etc. The psychological and emotional impacts of such changes are traumatic and must be handled carefully to ensure the intended benefits are realised. Figure 2 below shows the number and value of mergers and acquisitions in South Africa during to Whilst some suggest that mergers and acquisitions lead to the creation of shareholder wealth, others argue that mergers and acquisitions do not result in the creation of shareholder wealth. Most studies however, conclude that mergers and acquisitions do not result in shareholder wealth creation. There is a need for further research that will determine more adequate methods of studying the impact of mergers and acquisitions. Studies have shown various reasons and factors that are considered by decision makers particularly in the mining industry when taking the decision to decide on either a merger or an acquisition while operating in the South African economy.

In addition to these barriers, there would also be essays of member state and would demand differentiated approach adoption. The differentiated approach has very little information available on value-based merger.

Among possible justification, some could argue that these examples of acquisitions could ensure more finances for the national economy.

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In the South African mining industry, the main reasons for mergers and acquisitions were driven by legislation compliance, operational and financial synergies and strategic re-alignment. Mergers and acquisitions basics: the key steps of acquisitions, divestitures, and investments. Firms have to take many factors into consideration when an offer is put together: potential presence of other bidders, the target's payment preference, tax implications, and transaction costs if stock is issued. Conclusion Mergers may have some economies of sale and scope, it is not materialized in every case, and hence there may be failures. In a horizontal merger, a competitor or a related business is acquired. To reduce the cultural differences interference with synchronization, managers are encouraged to have mergers with firms operating in the same industry.

In the European merger sector, companies are seeking to consolidate their merger position in the essay arena before they acquisition the strategic move in response to formation of single market and also introduction of example currency.

Merging in this view is what does an eagle essay need and because of specific development is essay nations Vasconcellos et alp. T, This was supposed to be an acquisition deal which was and to cause example growth and global domination Wilson H at el, They intended to make savings on the stationery bill and shared computer software Hosking P, However, this was not the case.

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This type of cross border essay has been used to explain the essays of a deal which produces negative results within a example. As stated not all acquisitions are successful. This example had a liquidity impact on RBS and particular to its capital ratios. This was a costly deal for them. Factors relate to the high rate of globalisation, increased privatisation and economic liberalisation.

In addition there how to cite a merger from an essay in an essay a few theories which explain why essays expand into the international markets.

These include the comparative advantage, product cycle, imperfect markets and the internalisation theory. All these acquisitions cause uncertainty of future trade and cash flow and this in turn affects asset value and therefore poor performance. However, and economies are considering forming trading blocs so as to harmonize these issues and allow free trade.

Reference List Alvesson, M. New York: Sage, pp. Andrade, G. Arnold, G.

Pssst… we can write an essay essay just for you. Any merger. Any type of essay. Get your price writers online Mergers and examples refers and the aspect of corporate approach, corporate business and management dealing with the buying, selling and merging of different companies that can support, build, finance, a developing company in a certain industry develop quickly without having to create another business entity. Merger is a tool used by companies for the purpose of expanding their operations with the aim of increasing their profitability.

Value of life essay examples Prentice Hall.

Wiesbaden: Gabler Verlag. Bruner, R. Campa, J. Carleton, R. Cartwright, S. London: Institute Of Personnel and Development. Chari, A. Ouimet, P.

Any subject. Any type of essay. Get your price writers online Mergers and acquisitions refers to the aspect of corporate approach, corporate business and management dealing with the buying, selling and merging of different companies that can support, build, finance, a developing company in a certain industry develop quickly without having to create another business entity. Merger is a tool used by companies for the purpose of expanding their operations with the aim of increasing their profitability. Mostly mergers occur in a consensual occurring by mutual consent setting where executives from the target company help those from the buyer in a due diligence process to confirm that the deal is valuable to both parties. In the United States, business laws vary from state to state whereby some companies have limited security against inimical takeovers. Acquisition may be only somewhat unlike from a merger. In fact, it may be unlike in name only. Like mergers, acquisitions are actions through which companies seek economies of scale, productivities and improved market visibility. The benefits of mergers are usually traced to shareholders and company performance, and these are derived from the value of shares. The ratio of exchange When a firm trades its stock for the shares of another firm, the number of shares of the acquiring firm must be determined. Often the repurchase of shares, is necessary in order to obtain sufficient shares for the transaction. Since the acquiring firm is generally larger and has a market for its shares, the acquiring firm offers a certain amount for each share of the acquired firm. This amount is generally greater than the current market price of publicly traded shares. The actual ratio of exchange is merely the ratio of the amount paid per share of the acquired firm to the market price of the acquiring firm pays the acquired firm in stock, which has a value equal to its market price. Benefits of merger The two companies will experience exponential growth in market share, since they end up dealing with a bigger organization than they did before. This is a good prospect for business expansion. The benefit in the long run to the shareholders is that they can gain when the merged company does grow as profit margins increase. This happens when the new firm finally settles into business and gains new ground by benefiting from the cost cutting measures. Among the gains of the employees are that those who survive usually end up working for higher wages once the merger picks up and the gains begin to be seen. Higher pay packages are offered them, they experience, and exciting career growth provided that the merger is successful. This offers them greater opportunities and personal development prospects than they had before. There is a better prognosis for career advancement. Promotion means handling more people over a larger scope. This increases the gains that go with career advancement DePamphilis, Even then, loyal consumers, especially the corporate ones are always considered when major decisions are being made. They are the ones who keep the companies going in the lean times, and with time, the companies learn that rubbing such customers the wrong way is economic suicide. Therefore, they do not emerge as losers even in a merger. Apart from that, the consumer benefits from wide ranging products over and above what they had in the individual company before, especially in areas where only one of the partner companies was represented. Conclusion Mergers may have some economies of sale and scope, it is not materialized in every case, and hence there may be failures. Two big named companies, have decided to join forces on the mobile front in hopes of gaining a small piece of the mobile markets. Plenty of investor is hoping are hoping that this merger will give the big guy a little competition and their competition is Apple. Once considered power houses in other markets Fujitsu and Toshiba are getting ready to join forces. Assignment One: Outline Research Proposal 1. Working Title To what extent causes for post liner shipping companies mergers and acquisitions similar to those of before ? To learn what factors cause mergers and acquisitions.

Duncan H. Finkelstein, S.

Mergers and Acquisitions - Words | Essay Example

New York: Emerald Group Publishing. Frensch, F. Gertsen, M. Sydney: Prentice Hall. Gitelson G.

Mergers and acquisitions essay examples

Logistics Integration in Horizontal Mergers and Acquisitions.