Best Practices of Mergers and Acquisitions

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:

Mergers and Acquisitions (M&A) typically refers to a corporate fiscal and strategic set of strategies that deal with the purchasing, selling, and/or combining of different companies or pieces of companies that are able to help grow a company or experience rapid innovation with either creating another business entity or investing research and development from the ground up (Hennepopf, 2009). Modern organizations are so highly complex and competitive that the old paradigm improving efficiency and the bottom line improves, is no longer all it takes to be successful. Companies must continue to reinvent themselves, put Board egos aside and look at the marketplace, their expertise, and what they can do to retain market share. With technology changing so

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

The goals of mergers range from reducing the number of competitors, to access of new products (Belcourt et al., p 330). Statistics show that 80% of new product developments fail (Howells, 2011), partly due to challenges and conflicts with human resources functions. Mergers and acquisitions are the fastest way to enter new markets. “It is estimated that 1/3 of all mergers fail due to faulty integration of diverse operations and cultures,” (Chhinzer, 2013). Therefore, the success of a merger or acquisition lies in the ability to guide, motivate, retain, and effectively use

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

Firstly, the need for achievement is met by understanding that people strive to master difficult situations, endeavors or challenges. This idea works on both an organizational level, as well as an individual level. From an organizational level, it is well known that a merger of this magnitude had never been attempted. With that brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make

several factors are influencing merger and acquisition activity. Achieving economies of scale, broadening geographic market coverage, and more effectively competing have helped to create a flurry of acquisitions in the marketplace. In addition, the search for cost reductions through, particularly in the mature market conditions we have in the industry, are being used to offset companies’ inability to grow profit through price increases.

The integration phase is the final phase of a merger and acquisition. This is typically where managers underestimate the magnitude of issues. Problems arise due to over estimation of synergistic benefits, culture, and communication issues between departmental managers, employees, and customers. Culture clashes are a huge issue in mergers and acquisitions. From our research, we found many companies underestimate the severity of these clashes. Each company has its own environment and the smallest changes can upset a whole organization if it is not dealt with

With the ever changing economy many companies today must evaluate strategies and practices to allow for optimum diversification and financial success. With the changing the marketplace organizations may turn to mergers and acquisitions to further diversify their business portfolio and expand their reach within the community. As organizations merge there are many variables that need to be considered, namely the employees which are the most important asset of both entities.

Given these challenges, it is essential to keep the following points in mind when planning and managing communication during a merge and acquisition.

* Are there viable alternatives to the merger (for example, greater integration with suppliers, partnership deals, keiretsu)?

Mergers and acquisitions, usually shortened as M&A involves buying, selling, mixture of diverse corporations and particularly those that contract with comparable objects to exploit the entire revenues of the business. The chief purpose of mergers and acquisitions is to make sure that diverse businesses can be helpful in the fast development of a specific innovativeness. They do this lacking consuming to make a major, a combined scheme or a youngster object. An acquisition exactly mentions to the performance of buying additional corporation or commercial object. In several cases, it states to the buying of a much minor firm by a bigger one. In the lengthy run, the bigger firm obtains the management control of the minor firm but the first name of the business is continued. PepsiCo Inc. is one of the beverage manufacturing corporations that is an outcome of merger from minor firms. American Pie LLC is a food and beverage Industrial Corporation that does not have an antiquity of mergers and acquisitions and functions exclusively within the U.S. I will recount the procedure plans of the two companies, showing the operative policies of each of the businesses.

In modern business environments, there are increasing dynamics encouraging firms to utilize mergers and acquisitions to resolve resource. In dynamic business environments, the value of existing resources is subject to erosion, in some instances fast erosion. Consequently, firms continuously respond to changing environmental conditions by upgrading their resources and capabilities via renewal, acquisition, redeployment, and recombination. Mergers and acquisitions provide firms with a practical tool to close their resource gaps, allowing for a much faster reconfiguration of the product mix toward high-profit products than, for example, internal development (Eschen and Bresser, 2005). The need for corporate firms to achieve competitive advantage in a highly competitive global environment has necessitated the implementation of innovative strategies, one of them being mergers and acquisitions (Rizvi, 2010).

Merger and acquisition is a corporate strategy entailing the selling, buying, and combining or dividing business entities in a bid to facilitate rapid recovery or growth. A merger is distinguished from an acquisition in the sense that an acquisition entails a take-over. A merger involves a combination of business assets of two companies forming an entirely new one ADDIN EN.CITE Mehnert2008259(Mehnert, 2008)2592596Mehnert, M.Negotiation: Definition and Types, Manager's Issues in Negotiation, Cultural Differences and the Negotiation Process2008Santa Cruz, CA 95060Hammer, Patrick, Tanja Hammer, Matthias Knoop, Julius Mittenzwei, Georg Steinbach u. Michael Teltscher. GRIN Verlag GbR9783640183234http://books.google.co.ke/books?id=CoeiECIdYUsC( HYPERLINK l "_ENREF_1" o "Mehnert, 2008 #259" Mehnert, 2008). In this paper Mergers, acquisition and international strategies are discussed looking at two companies: American Airlines Group Inc and American Media Inc. the paper discusses these companies looking at the strategies they have deployed in their operations and the possible gains for such strategies.

Corporate structure and culture can be a strength or weakness to an organization depending on the situation at hand. For instance, culture that emphasizes on constant renewal is a reliable strength when it comes to organizational change. It would be easier to domesticate change with such a culture than when the organization professes a conservative culture. Organizational culture is a great advantage when inducting new employees because it gives them some insight of what is expected of them. However, corporate culture and structure can be an avenue of weaknesses when it comes to mergers if the two organizations merging have different cultures. The differences might call for restructuring of the resulting organization to accommodate both organizations. Restructuring is an expensive affair, which might have negative impact on customers (Films on Demand, 2011).