Key Financial Drivers For Mergers Essay

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.

Theoretically it is assumed that mergers improve the performance of the acquiring firm due to

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

Over the past decade hospitals have incurred immense transformation, from the advent of the Affordable Care Act to bundled payments. In response to this reform, hospitals are consolidating to create larger health systems with broader services and strategies to combat economic pressures and regulatory concerns. The principle goal of a health system merger or acquisition is to capitalize on their investment and create a high performing efficient hospital that promotes streamlined care across disciplines. Between 2009 and 2012, the number of mergers and acquisition deals occurring per year nearly doubled from 50 in 2009 to 94 in 2012 (Egan, Kerns, Bartz, & Cassels, 2013). However, while the numbers of consolidations increase, data suggests that

Cost is the driver that will most likely cause healthcare organizations to merge. Most healthcare organizations have issues with spending. Most industries today are faced with a variety of obstacles in achieving or remaining profitable. The healthcare industry is no exception. Profitability is enough of a challenge under normal circumstances, but especially so during fragile economic times. Uncertain revenue streams and rising costs have many healthcare organizations understandably apprehensive.

This case study is about two merging hospitals Porter Regional Medical Center (PRMC) and Banner Regional Medical Center (BRMC) that are merging together but were once competitors. PRMC is located on the east side of town which consisted on 110 hospital beds with 188,000 square feet of facility space and 63 acres of land. BRMC is located on the west side of town with 154 patient beds, with 561,366 square feet of space and 6 acres of land; however, BRMC faces the dilemma of aging facilities and is granted the funds to renovate the facility with the completion of the project ending in the next three years. PRMC last year, faced a one million dollar lost and caused the organization to liquidate. Both organization CEO’s were interviewed to

With reference to the item on telecoms and your own research, to what extent do you think that leadership is the main factor influencing the success of takeovers and mergers?

A merger can reveal numerous opportunities for a smaller company seeking to increase sales without depleting resources or cash flow. If for example, Berry’s has established a strong customer loyalty and presence in a particular locale, but has not been successful in expanding to others, a merger with a competitor could easily lead to that opportunity. This “broadening of horizons” is commonly known in the business world as a horizontal merger. A

Mergers can help with entering emerging markets, cutting costs, and gaining competitive advantages. There is increased pressure for publicly traded companies to raise their earnings. If it cannot be done inside the company, they might seek to acquire companies to boost earnings. Additionally, the internet and technology advancements have brought about off-shoring of white collar jobs and made merging with competitors easier.

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

Mergers and acquisitions, better known as M&A, is a “…term used to refer to the consolidation of companies” (Investopedia, 2014). “Mergers can allow companies to combine forces and stake out a greater portion of market share” (Alli, 2010). A company may choose to merge with or acquire another company for a multitude of reasons such as “…maximize[ing] shareholder value. (Ferris & Petitt, 2013)”

In modern business environments, there are increasing dynamics encouraging firms to utilize mergers and acquisitions to resolve resource. In dynamic business environments, the value of existing resources is subject to erosion, in some instances fast erosion. Consequently, firms continuously respond to changing environmental conditions by upgrading their resources and capabilities via renewal, acquisition, redeployment, and recombination. Mergers and acquisitions provide firms with a practical tool to close their resource gaps, allowing for a much faster reconfiguration of the product mix toward high-profit products than, for example, internal development (Eschen and Bresser, 2005). The need for corporate firms to achieve competitive advantage in a highly competitive global environment has necessitated the implementation of innovative strategies, one of them being mergers and acquisitions (Rizvi, 2010).

The completions and interests in Mergers and Acquisitions (M&A) is growing largely day by day (Michael A. Hitt, Jeffrey S. Harrison, R. Duane Ireland, 2001) During the recent recessions companies are looking into different ways to stay afloat, to grow and even continue to exist, and one of the best ways of doing this, is to merge or acquire another company (Dash, A, 2010) Lynch (cited in David Faulkner, Satu Teerikangas, Richard J. Joseph, 2012) also believes in some instances growth can take place within sector integrations which includes horizontal or vertical or even by going into a new sector by acquiring a new business, which is called diversification. A Merger or Acquisition takes place when two or more companies join

Controlling uncertainty, realizing economy of scale, enhanced product offering, synergy to be gained or acquiring a capability not previously realized? There are a number of different reasons why a company may attempt to merge or acquire another. For all the various explanations out there in the end the simplest explanation is the best. It is all about the money. Greater efficiencies, outputs, tax breaks, complementary products, vertical integration can all translate to money.

Hou et al (2015) stated that the ultimate aim of M&A is to gain stronger market power and hence enhanced competitive position through the elimination of rivals This in effect increases control over market conditions such as supply and price. Nguyen et al (2012) supported this by highlighting that increased market power is one of the considerations taken when conducting synergistic acquisitions.