External Factors That Affect Mergers And Acquisitions

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

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.

For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

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.

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:

Merger of Hospital A and B and its consolidation into PRMC was essential as Hospital A was crippled with losses for 3 previous years and was also forecasting losses in the coming year. Hospital B was struggling with an aging facility. Furthermore, given that both the hospitals were in the same community and therefore essentially serving the same community, they were competing both: for the same patients, as well as, the clinical staff. The merger, allowed the new PRMC to reduce the healthcare costs, address the shortage of healthcare personnel and improve the delivery of healthcare by reducing the duplication of services and providing wide variety of services to the small community of 60,000 in southeastern part of Idaho.

The hospital has two primary external factors that it must appease. First is government needs and regulations. This contributed largely to why ‘A’ wanted the merger to begin with. The government was looking to reduce chronic care facilities and by merging with their larger cousin, their survival was more certain. The second external aspect is the business aspect, the reason that ‘B’ agreed to the merger. Despite their strong customer care, they were not business minded and as a result were facing potential bankruptcy. For the purposes of this analysis, the external environment is assumed to be outside the control of the hospital and is mentioned here due to its importance to the internal environment, which can be controlled.

External influences cover a wide variety of factors, and their influence can differ between business types. These include the following:

This case study is about the merger of Mount Adams Hospital of Cleveland and St. Mary’s Hospital to form Consolidated Care Hospital. The main character of this case is Marcus Hernandez, he a member of the organizational department for Mount Adams Hospital. He was just appointed the position of codirecting the merger transition team by his immediate supervisor Tameka Anderson. His partner for this position is Lorie Lockart from St. Mary’s Hospital. Their job is to create a survey that lets the hospital know what the employees are thinking and dealing with in their lives. Then compile the information and give recommendations to the hospital. This study starts and ends with Marcus just about to go in to talk to Tameka about the past four months of the new project and the new work schedule that he requested so he can spend more time with his twins girls.

7. Using the Internet, locate at least three major mergers or acquisitions between U.S. and foreign corporations over the past five years. Describe each.

Before the acquisition our company was strong in customer satisfaction but in business and like the world around us we must keep changing for improvement. With our full and happy client base we plan on a successful merge with RPZ. Their innovative ideas will provide our clients with exciting new marketing opportunities.

In the short story “The Merger of Two Competing Hospitals”, we see both Porter Regional Medical Center and Banner Regional Medical Center reach an agreement to form a merger. Both Hospitals had at least one major current flaw and by teaming up they no longer had to worry about the aspect of competing with each other. PRMC faced the problem of annually losing large sums of money. While over at BRMC the problem laid within the infrastructure and not the problem of money.

* For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

External factors are outside influences that can impact a business. Various external factors can impact the ability of a business or investment to achieve its strategic goals and objectives. These external factors might include competition; social, legal and technological changes, and the economic and political environment

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: