Competitive Business Environment For Corporate Finance World

Mergers and takeovers are forms of external growth within a business. External growth occurs when one firm decides to expand by joining together with another. A takeover specifically refers to the gaining control of a firm by acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining with another firm to form a new combined enterprise, shares in each firm are exchanged for shares in the other.

(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

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.

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

In this paper, I begin by describing and assessing the different criteria financial analysts within Fortune 500 companies use to evaluate merger success and acquisition rationale. I also discuss what these strategies can imply about the sources of gains and losses on each company’s stock price, and the factors that drive merger success in the long run. I then discuss the firsthand evidence of this merger and acquisition by examining transaction details from both parties and transitioning into an analysis of CB&I’s strategy for post-merger integration. Finally, I discuss the implications of

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

The paper differs from others as it will provide insight and evaluation into which event during the merger process had the largest effect and identify whether this was the same for both firms, especially since the merger was undertaken in a tough regulatory environment which contains many “hurdles” (). The results of this paper could be attributed to other firms in the industry or, potentially, to other industries with similar regulatory structures.

A merger is a strategy where two companies agree to combine. Mergers are popular among

The prime reason for mergers and acquisitions are to maintain or increase market share and to increase share holder value by cutting cost and initiating new, expanded and improved

Mergers and acquisitions (M&A) strategies have been popular among U.S. firms for many years (Hitt, Ireland, & Hoskisson, 2013, p.195). Firms use merger and acquisition strategies to improve on their ability to create more value for all their stakeholders, including shareholders’ (Hitt et al., 2013, p.195). A merger is a strategy through two firms that agree to integrate both of their operations. Although, most mergers that are completed are friendly in nature, acquisitions can be friendly or unfriendly (Hitt et al., 2013, p.196). An acquisition is a strategy through which a firm buys a controlling, 100 percent, or interest in another firm with intent of making the acquired subsidiary business part of their portfolio (Hitt, Ireland, & Hoskisson, 2013, p.196).

A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation. The less essential company loses its identity and becomes part of the more imperative corporation, which retains its identity. A merger extinguishes the merged corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the merged corporation (Gomes, 2011). A merger is not the same as a consolidation, in which two corporations lose their separate identities and unite to form a completely new

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.

The successful Merger of Exxon & Mobil brought back one of the first and largest monopolies in American history. The merger bring back the two pieces of Standard Oil Co. the Rockefeller oil titan that was split in 1911 due to a Supreme Court decision. Industry leaders Exxon announced on November 30th 1999 that they plan to buy and merger Mobil, the number two company in the field to make Exxon & Mobil. The deal had to be approved by the U.S. government and was only approved after Exxon & Mobil promised to sell more then two thousand four hundred gas stations across the country. "Because Exxon and Mobil are such large and powerful competitors and because they now compete in several product and geographic markets in the United States, the commission insisted on extensive restructuring before accepting a proposed settlement," FTC Chairman Robert Pitofsky said in a statement referring to the large amount of gas stations that would be sold due to the merger. "This settlement should preserve competition and protect consumers from inappropriate and anticompetitive price increases," he added. Exxon & Mobil is now the biggest of the three oil superpowers which also incudes Anglo-Dutch venture Royal Dutch/Shell and U.K.-based BP Amoco, which is also awaiting regulatory approval for its purchase of U.S.-based Atlantic Richfield.

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.

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.