Abstract
The research proposal which is going to be written will mainly revolve around the concept of mergers and acquisition in current situation. Research would mainly focus upon: How mergers and acquisitions take place? Why there is need to merge or acquire? What are the legal ways or step to do that? What parties are involved in mergers and acquisitions? What are the Factors to be considered before mergers and acquisition? In order to carry out whole research till the conclusion few models will be used such as business evaluation models which will comprise asset evaluation method, historical earning evaluation, future maintainable earnings evaluation, relative valuation and future discounted cash flows (DCF). The purpose of choosing the topic “mergers & acquisitions” is its significance in the industry of modern world now days. (Hansell, 2005)
Precisely, mergers and acquisition is another name which is used for consolidation of two organizations. This happens when two separate organizations start operating combine. Merger are type of consolidation in which two different entities merge their operations and start operating as a single entity but acquisition is that type of consolidation of two organization in which one entity purchases the other one entity or organization or company which eventually starts operating as single entity. Many factors are needed to be considered before this phenomenon occurs. Above all, consent of both the organization is important whether they
(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
Mergers and acquisitions have become a growing trend for companies to inorganically grow a business within its particular industry. There are many goals that companies may be looking to achieve by doing this, but the main reason is to guarantee long-term and profitable growth for their business. Companies have to keep up with a rapidly increasing global market and increased competition. With the struggle for competitive advantage becoming stronger and stronger, it is almost essential to achieve these mergers. Through research I will attempt to dissect the best practices for achieving merger success.
Haspeslagh and Jemison (1987), argue that what determines the success of a acquisition is not the actual purchase itself, but the development of the acquisition strategy the supports. Unfortunately, many executives face the acquisitions as an end, not a means to achieve that end. According to this author, the acquisition is only one strategy business growth. There are others as internal growth, joint venture, partnership, franchise and strategic alliance. All should be evaluated by the company before implementing a business development strategy. A proper analysis of the acquisition goes beyond the study's own candidate company. It must include a contribution from the analysis of potential acquisition for the strategic development, as well as
Merger refers to the combination of two or more companies into a single company where one continues to exist, while the other loses to its corporate existence. The survivor acquires all the assets as well as liabilities of the merger company.
Mergers and acquisitions are the right practical choice for accelerating the development cycle for the companies because there are some advantages from broadening and market extension, such as enhancing business performance, increasing profits, and overall shareholders value. However, it may be there some negative impacts on the company. For example, team management can face some obstacles such as culture, legislation and laws and command-and-control. I believe if there are more beneficiaries and less losers then acquisition or merger is ethical model. The potential of failure for merger or acquisition is high; trying to integrate firms with two different cultures, legislation and laws is difficult. For example, if the company merged or acquired with another company in the same field, it is difficult to grow sales because there aren't really new potential customers. The key to growth through merger or acquisitions is a faster, less expensive, and a much less risky
Part 2 of this course continues with an overview of the merger and acquisition process, including the valuation process, post merger integration and anti-takeover defenses. The purpose of this course is to give the user a solid understanding of how mergers and acquisitions work. This course deals with advanced concepts in valuation. Therefore, the user should have an understanding of cost of capital, forecasting, and value based management before taking this course. This course is recommended for 2 hours of Continuing Professional Education. In order to receive credit, you will need to pass a multiple choice exam
Merger is a combination/consolidation of two companies to form a new company or entity. In a merger, two organizations come together to become a new business, usually with a new name. Because the companies involved are typically of similar size and stature, the term "merger of equals" is sometimes used.
In today’s world, Mergers and Acquisitions often occur within the companies and it business, definition of Mergers and Acquisition based on (Investopedia LLC, 2015) is an act of business between two company to form into whole new company by becoming into one, while acquisitions is a business action to undertake other business or company by buying over it without even changing anything except ownership.
According to Jimmy, 2008; Alao 2010 the term Merger, “refer to the combination of two or more organizations into one larger organization. Such actions are commonly voluntary and often result in a new organizational name (often combining the names of the
India being one of the fastest growing economies in the world, always tried to adopt the most successful practices across sectors. It tries to project itself in the global forum with big and mighty companies in the core sectors. Merger and Acquisitions acts as an important tool for the growth and expansion of the economy. The main motive behind the M&As is to create synergy between the likeminded companies or the strong companies and weakly performing companies. M&As help the companies in getting the benefits of greater market share and cost efficiency. Companies are confronted with the facts that the only big players can survive as there is a cut throat competition in the market and the success of the merger depends on how well the two companies integrate themselves in carrying out day to day operations.
A merger occurs when two firms come together or join together in order to share resources of the two organisations. A merger helps enhance the two organisations which have joined to share resources and management skills for the benefit of both organisations which now work under one management structure. On the other hand take-overs include acquisitions of a firm by another. In this case the one company that has
The mix of at least two organizations into another organization, where every one of the organizations lose their character is named as a merger through consolidation.Here, the gained organization exchanges its advantages, liabilities and shares to the procuring organization in return of money or shares.
M&A is a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.
A merger refers to the process whereby at least two companies combine to form one single company. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry.
Acquisitions are types of business combinations in which two entities or operations of entities are merged into one single entity (www.enotes.com)