Case Study Of Mergers And Acquisitions

Paulson E. (2001). “Inside Cisco: The real story of sustained M&A growth”, John Wiley & Sons, Inc.

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.

Mergers. Acquisitions. Mega-mergers. Recent years in healthcare have witnessed some of the biggest companies acquiring one another at alarming rates. However, the Wall Street Journal released an article at the end of October that has everyone talking - one of the largest owners of drugstores in the United States is considering buying one of the largest health insurers in the United States. That is right, CVS Health might be purchasing Aetna for approximately $66 billion.

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

Dag Andersson et. al., “Electrolux: The Acquisition and Integration of Zanussi,” INSEAD-CEDEP, 1989. Electrolux tried to bend over backward to avoid the perception—developed before the merger closed—that Zanussi employees perceived Electrolux as “Viking invaders.” To change that perception, Electrolux took a very long time to work with key Zanussi stakeholders to be very sensitive about issues such as cost cutting.

Islam, S., Sengupta, P., Ghosh, S., & Basu, S. (2012). The behavioral aspects of mergers and acquisitions: A case study from India. Global Journal of Business Research, 6(3), 103-112.

However, there has been present a considerable cyclicality in the Chemical Industrial Products manufacturing industry due to which the M&A deals have been a common tool of survival for the competitors as well as for the big players to capture the integrated products markets and create value across the value chain. Therefore, Blackstone has been valuing a backward integration as a due.

This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works.

In 1954, Alpha Plastics was founded near Manchester. And by the mid 1969’s, the company had developed into a medium-sized company with around 6,000 employees. The company was famous for developing and manufacturing a wide range of laminates and industrial adhesives. Also, it had explored the market in synthetic fibre manufacture by take-over. In 1988, Alpha Plastics involved in merger with the Colmar Chemical Company, which is a slightly larger organisation with 8,500 employees and located near Stockport. Colmar produces a variety of industrial chemicals besides plastic and specialises in the production of synthetic fibres. Alpha Plastics believed that the merger would allow taking advantage of

Look up at the sky, it's a bird, it's a plane, no it really is a plain. All across the United States and all over the world there are a number of companies that are constantly seeking to expand each by a number of different means; some companies are going public, others are buying assets from other companies, and some companies are merging. Mergers happen every day whether we realize it or not there are a number of different smaller companies out there that either by or acquire another company's assets or acquire the whole company itself. The whole merger process can be complicated and also can be quite simple one company seeks to expand and another cease to liquidate some assets, the reasons for this are as different as each company. One

One of the theories used to explain why firms engage in M&A is the synergy theory. Synergy theory or hypothesis asserts that the sum value of both individual firms before an M&A is lower than that of the combined firm (Seth, 1990). This increase in value is due to the effect of the synergy potentials which could only be realized by combining operational and financial resources of both firms. These synergies present the extra value created by merger. Thus, creating value for shareholders that at least equates or exceeds the cost of the acquisition should be the primary objective of any M&A. Essentially, synergies should be the sole principle in justifying companies to engage in M&A. In theory, financial synergy of a merger is realized when

The United States’ market for mergers and acquisitions formally began at the dawn of the 20th century, when industry began to evolve and capital needed to be more efficiently allocated. Economic historians and academics alike have concluded that the market advanced to its current stage through a series of cycles, the first of which began in the early 1900s, that occurred due to technological advances, disproportionate cash flows, and capital displacements. As the economy developed, the market for mergers grew and became more convoluted due to growing consumer bases in virtually all industries and a need for more efficient markets and lower costs.

Consolidation: A consolidation will create a new company. Stockholders of both companies must approve the consolidation, and after for this, they can receive common equity shares from the new

In January 1998, Jürgen Schrempp, CEO of Daimler-Benz A.G., approached Chrysler Corporation’s chair and chief executive officer (CEO), Robert Eaton, about a possible merger, acquisition, or deep strategic alliance between their two firms. As Schrempp argued: The two companies are a perfect fit of two leaders in their respective markets. Both companies have dedicated and skilled work forces and successful products, but in different markets and different parts of the world. By combining and utilizing each other’s strengths, we will have a preeminent strategic position in the global marketplace for the benefit of our customers. We will be able to exploit new

25 The Procedures Of Mergers 30 Determination of the Value of a Firm 33 Terms of Mergers 35 Quantitative Factors Affecting Merger Terms 35 Merger Waves 37 CHAPTER THREE: METHODOLOGY 41 Introduction 41 Background of the Companies 41 Study Design