Amalgamation Summary 1

(a) In a merger agreement, the assets and liabilities of the firm which is being acquired end up being absorbed by the buyers firm. A merger could be the most effective and efficient way to enter a new market without the need of creating

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

1.      Economies of scale. An amalgamation company will have more reasons at its command that the individual companies. This will help in increasing the scale of operations and the economies of large scale will be available. These economies will occur because of more intensive utilization of production facilities, distribution network, research and development facilities, etc. these economies will be available in horizontal mergers were scope of more intensive use of resources is greater.

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

A lot of times, company merge to become more competitive . The consolidation of these

The second type of combination is consolidation which takes place when a new corporation is created to absorb the operations of two or more existing corporations. The shares of the existing companies are retired, and the shares of the newly formed company will be allocated to those shareholders accordingly. Only the new corporation continues to exist as a legal entity.

Vertical Merger: two companies that make parts for a finished good combine - A vertical merger occurs when two companies previously selling to or buying from each other combine under one ownership. The main objective of a

there are three sorts of mergers: horizontal mergers, vertical mergers and combined. A horizontal merger is an amalgamation between two firms possibly dynamic in similar market at similar level of activity e.g. between two insurance firms whnventory networkile a vertical merger includes firms working at various levels of chain of supply e.g. an insurance firm obtaining a

business, company can get great profit and cut out additional operational expense. It is also easier to manage one company rather than two companies. Therefore, merging is the best solution.

Penetration of market: By merging, the new organization is supposedly furnished with access to more clients. This is actual if the individual organizations had been obviously fruitful in discrete markets, instead of generally just as contending in the same one.

Then we have Tyco International Ltd. that merged with Binge/Purge. Such a shame that Tyco’s newest acquisition had “questions of fraud, people undermining decisions, and bad accounting practices.” My last example is that of AutoNation. AutoNation is a company recently formed that deals with “pre-owned” or used cars. It has “shut down 23 of its mega stores, and laid off 1,800 employees just because they overproduced the unwanted plain vanilla models of cars”. The company was obviously losing sight of something important, the demand for that color of car.

Mergers and acquisitions have always been around and have been popular in the United States for decades. It has been said that that mergers and acquisitions have contributed to the reconstruction of businesses during the 80’s and 90’s. The following is an analysis of a case study on Southwest and will address acquisitions, mergers, and restructuring.

The terms merger or amalgamation have not been defined in the 1956 Act, though this voluminous piece of legislation contains 69 definitions in Section 2. The concept paper recently issued by the Ministry of Company Affairs, the fate of which is still unknown, contained 100 such definitions but still stopped short of defining merger or amalgamation. The terms merger and amalgamation are synonyms and the term ‘amalgamation’, as per Concise Oxford Dictionary, Tenth Edition, means, ‘to combine or unite to form one organization or structure’.

According to Hagerdoon et al. when two firms come together they share knowledge as well as create new knowledge that they wouldn’t have been able to or that would have taken more time individually (Schilling, 2010). This is especially important for research and development (R&D).

In merger: The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stocks. Two companies become one, decison is mutual. They are not idependent anymore