An Investment Thesis Statement

There are certain benefits that derived from the merger, which would also boost the operations and financial performance of the organization.

According to the researchers the increased value results from an opportunity to utilize a specialized resources which arises solely as a result of the merger (Jensens & Ruback, 1983; Bradle, Desai and Kim , 1983). For creating operational and financial synergies managers believe that two enterprises will be worth more if merged than if operates as two separate entities. Thus, the two companies, A and B:

Our approach is an active security selection with passive asset allocation. We invest heavily in common stocks, but vary our holdings to include companies of all sizes and industry groups. We seek to achieve sufficient diversification by abstaining from investing more than 5% of the total assets in a single security unless it has significant upside potential, and we make an exception for ETFs and index funds as they represent a basket of securities. Our main goal is to identify and invest in common stocks with high potential for both short- and long-term capital appreciation. Our secondary goal is to invest in common stocks with steady income. When potential for rewards are high, we also enter into derivative

Merging with another organization has downfalls of destroying wealth from the merger. Considering the buying price is important when merging, spending too much on the merger will impound the value after the merger. Some mergers do not create wealth so capital is lost through the merger. There is no guarantee of financial gain and every formula considered with focus, just as with an acquisition. The final decision dictated by the variables. One company merging with another company takes the debt and losses of those companies in the new formed company.

Pikula (1999) observes that in merging two or more entities, the management of the companies must adhere to the Sherman Anti-trust Act which was established in 1890. This act was specifically established to prevent mergers from creating monopolies and cartels with an aim to exploit the consumers through determining prevailing market prices. If the merger results in a monopoly, it won’t be approved by the government. Employee contractual agreements must be considered before, during and after mergers. For the merger to go on seamlessly there should be shareholder approval. Initial approval by shareholders for the companies to consolidate their operations helps prevent conflicts from shareholders after the merger. Lastly, regulatory approval should be considered. The management must register the newly formed company. In addition, managers from the merging parties must consider agreements and contracts that the parties are engaging in as these will be transferred to the new company upon the merger.

Culture is an important factor to consider when mergers occur. One of the most important goals is to keep harmony amongst employees during the process. There is not much one can do for the employees who choose to be disgruntled just because. Another important factor involves the customers throughout the process, making sure daily business is not interrupted.

Due to the diversity of the cultures in the merged organizations, the management team has to facilitate a working culture in the new organization. Each organization

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

In accordance with our previous discussion, as promised, attached is our proposal to provide business investment plan for Eagle’s Nest Hotels Inc., prepared by the following staffs: Weng Hong Hoh, Kang Yi, Nicklas Ivarsson and Moneeb Aziz.

2) Branding/Marketing- The merger of two entities in essence means that each individual organization needs to shed its individuality and adopt a common goal. Hence, the branding and marketing should echo the group’s identity and be integrated across divisions.

I do realize that the merger of two or more companies does not come in a nice clean package. However, Grobman does a nice job reviewing how to begin a merger and the steps necessary for a merger. He reviews that each participating board should adopt a resolution in favor of the general principle of merging, should appoint a merger committee of board members and staff, use a outside experienced merger consultant, and have meetings scheduled to discuss goals of the merger, whether it is feasible, budgeting, laws, polices, and staff (Grobman, 2015, pg. 395). I think having a careful plan and address these areas Grobman discusses can lead to a successful merger.

Leading by example is the most effective way to produce results. The middle managers in most companies are more approachable than top management; therefore it is imperative that middle managers are on board with the new vision of the company and display this in a positive way. While the merger is occurring it is essential to build a team atmosphere, full of open communication, honesty, and teamwork. Each employee from both companies should feel as though their positions is important, and their cooperation is essential to the success of the forming company. Once the merger is complete, it is all about the new culture, staying visible, approachable, and communicating information early and often (Bolton & Lewis, 1998). Aside from ensuring employees are blending well, it is important to focus on patient care. There will be changes implemented at every phase of the merger, but it is important not let misunderstandings, or issues within the staff affect the quality of care given to the patients.

Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business

I started doing my research in the Microsoft Network using the Custom Search feature in the Stock Screener. Since I was looking for a conservative stock to start with, the first restriction I put was that the stock be a member of the Dow Jones Industrial Average. I also wanted a Large-Cap company so I put the Market Cap to be above 5 billion dollars. Another restriction I added was that its P/E ratio be the lowest possible and that the EPS Year to Year be above 13%. After running the search I got 20 matches. The top three were Exxon, SBC Communications and American Express. After researching them a bit more I decided that Exxon would be a good option because it was a solid company that had a

In an ideal merger, the newly created entity pools the best features of the two merging organizations. A well planned process built on the foundations of an open, honest and consistent communication strategy can pave the way.