Business Evaluation : Mergers And Acquisitions

The main objective of M&A by the company is to merge their power and control over the market, and also strengthen company’s competitiveness. Not only that, financial risk also can be reduced. Besides that, by sharing resources and services will results in economies of scale, which producing greater quantity products but at lower cost. As a result, the company can gain value efficiency in new entity because of cost-saving. Furthermore, it is a strategic way to gain quick access to new resources, technologies and capabilities. Therefore, the only way to succeed in executing M&A strategies is by knowing who are the persons involved, how it can be implemented and when the strategies are best implemented. The strategic plan must be done systematically, monitoring progress, evaluating performance and taking corrective action if problem

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.

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.

There are numerous companies, which have huge expectation with the Mergers and Acquisitions for creating the value of the business through effective efficiency, large scale of economy, reduction of production and other costs, and synergies. Therefore, it is assumed that largely, this strategy influences the business. However, the impact of Mergers and Acquisitions announcement might affect organisations both positively and negatively.

(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 when two separate companies, Company A and Company B, are joined together and become a completely new organization, Company C. On the other hand, an acquisition is when Company A, a larger firm, buys out or takeovers Company B, a smaller firm. As a result, the companies ' financial statements are then consolidated. In a merger, the two companies consolidate into a new entity that demands for new ownership and organizational/managerial structure. The company will have twice the amount of employees working the same job, and the company can eliminate some positions. For instance, there is no point on having two CEOs, CFOs, and doubled the amount of management positions. However, an acquisition deals with the companies being separate and coming together to complete consolidated financial statements. This allows for overlap in positions, but decisions are typically made by the larger company. Moreover, a merger typically exhibits a friendlier connotation whereas an acquisition denotes hostility through force. Thus, the two terms have come

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

Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.

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.

Industry mergers or business combinations are a phenomenon that has been commonplace for quite some time now. They basically involve two or more organizations coming together to form a large corporate under which they operate. The new organization which may have a combination of the names of the merging components or a totally new name operates as a new entity. The new rule under which the new entity operates depends in the agreement on the terms of the merger. As stated in our advanced accounting text, the history of mergers can be traced back to the 1895 to 1905 period in the US when the

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

This paper is about two companies that went through same type of change (merger and acquisition) with different outcomes. Merger is combination of two or more companies in which the assets and liabilities of the selling firms are absorbed by the buying firm. Although the buying firm may be a considerably different organization after the merger, it retains its original identity while Acquisition is the purchase of an asset or an entire company (Sherman, A. J., & Hart, M. A. (2005). Chapter 1: The Basics of Mergers and Acquisitions. In, Mergers & Acquisitions from A to Z. American Management Association International.).

Merger is the combining of two or more firms, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.

Issues investigated in this report will be discussed neutrally and objectively. However, there are still numbers of limitations in this report due to many factors. First of all is the biasness of the information collected from the interview of employees in the company. These information may not be neutral and trustworthy; or even misleading. Also, lacking of time is another limitation of this report. Since this consulting report is conducted within a limited time, the consultant cannot address all issues but major points preventing the merger goes smoothly. In addition, financial issues, which can also be a factor