Mary Aah argument stated if the net assets of the combined company are worth more than the date of the merger, and then there should be no impairment of goodwill. Goodwill is less than the fair value which the goodwill is reduced to bring the assets value to the carrying value. FASB Statement No. 141 Business Combinations addresses financial accounting and reporting for goodwill and other intangible assets combined the two companies in acquisition. FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions, addresses financial accounting and reporting for goodwill and other intangible Assets acquired in an acquisition of a business or nonprofit activity by a not-for-profit entity at
Goodwill is not amortised. Instead, goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.For the purposes of impairment testing, goodwill is allocated to each of the Group 's cash-generating units (CGUs), or groups of CGUs, expected to benefit from the synergies of the business combination. CGUs (or groups of CGUs) to which goodwill has been allocated are tested for impairment annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired.If the recoverable amount of the CGU (or groups of CGUs) is less than the carrying amount of the CGU (or groups of CGUs), the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU (or groups
Baylor Scott & White Health, formerly Baylor Healthcare Systems and Scott & White Health, respectively, merged in October 2013 to become one of the largest healthcare systems in the United States. With a new-shared vision, mission, and values statement, this paper examines the strengths, weaknesses, opportunities and threats present in light of this new merger. A carefully considered execution plan is imperative to ensure continuity of exemplary healthcare and a seamless merger of two similar cultures. As stated by Joel Allison, CEO of Baylor Scott & White, “of mergers that fail, probably seventy five percent fail because of culture.” The execution plan presented in the following pages will help this new entity avoid the risk of losing the trust of their patients and the communities they serve, while creating a new culture acceptable by all that provide and receive the healthcare services of Baylor Scott & White Health.
As the two largest producers in the commercial aircraft industry, Boeing and Airbus have been in a long rivalry for over two decades. Because of its huge research and development cost and a volatile market demand situation, the large commercial aircraft industry has only a few viable producers that can successfully operate in this industry. At the end of 1996, there were three competitors in the industry – Airbus, Boeing, and McDonnell Douglas (MDC). When Boeing announced in December 1996 the merger between Boeing and McDonnell Douglas, the dispute has again started between Boeing and Airbus. The merger was expected to go under
In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons
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
There are a number of technologies that can be applied in the process of meeting the mandated requirements that will have some impacts of a merged healthcare organization. There are a number of technologies that are required to monitor the operations carried out in most of the merged healthcare systems. Some of the systems include CCTV systems that are meant to monitor the activities of different people who work in different departments in the organization (Buerhaus, Staiger, & Auerbach, 2009). The CCTV systems will also make sure that all the personnel who are given access to the central data repository center are those individuals who are allowed to carry such operations are no intruders access these systems (Lazakidou, 2016).
This case explains the process of merging two hospitals that have several issues that are needed to solve. What the board should do to create an executive team for the new organization is to recognize the “composition” of their members. Which means there should be a selection of people from within the organization such as administrative staff, physician leaders, etc. and should be balanced with outside members from the community. T he purpose of this is to help choose members who have different expertise to assist the board in carrying out its duties (Buchbinder & Shanks, 2012).
Carnegie was Scottish born and was an immigrant to America, arriving in the year of 1848. However, he managed to become the secretary for the manager of Pennsylvania Railroad. Even though this was not a very significant job, through hard work, Carnegie worked his way up to the point where he owned his own business, Carnegie Steel Company. His goal was to take control over the Steel industry, to maximize his profits and bring in more work. Carnegie is a very important as he is considered an example of an “American success story”, and he created the concepts of vertical and horizontal integration, which is explained in the next term. Overall, Carnegie helped industrialization advanced, as more reliable products were able to be produced at cheaper
The first six months of Mt. Mercy’s operation of Abbott were unsuccessful. Dr. John Coletti who had initially improved Abbott’s operations was left in the dark following the acquisition. The momentum that Dr. Coletti had previously aided in developing had quickly diminished once Sister Mary Theresa placed Abbott’s staff members on a probationary period. Additionally, Sister Mary Theresa instructed Mt. Mercy’s personnel department to essentially demote Abbott’s department heads by having them report to the department heads at Mt. Mercy. Ultimately, the acquisition is seemingly one-sided as the staff members of Mt. Mercy were not subjected to the same probationary period and their department heads were not forced to suddenly revoke their seniority
Though Humana was founded in 1961, it was not until 1984 until they began marketing products for the health insurance industry. At the time, they were said to have been on of the largest operators of hospitals systems in the United States, until 1993 (Humana 2015). The Humana Inc. we know today, post-1993 has been in an ever-changing reinvention wheel to fit the way we think and acquire health insurance. This industry in its stage of growth continues to expand and evolve, despite political differences, heavily regulation and the strong criticisms even before Patient Protection and Affordable Care Act (ACA) of 2010 (Parnell, 2014).
According to Dale Carnegie (2011), every individual has an innate need to feel important (Carnegie, 2011) . Individuals who feel important feel good about themselves. One way to achieve this is a merger process is for nursing leaders to recognize and acknowledge every employee’s excellent performance and positive contribution . Additionally, nursing leaders must make employees feel that they are a part of an organization that shares the same mission, vision and values. This is achieved by giving each employee a sense of purpose while acknowledging their important role in the company operations. This process gives them some sense of control amid uncertainty of the merger. This connection serves as a strong source of motivation
Our case study titled, The AT&T and McCaw merger negotiation, provides us with an opportunity to negotiate the terms of the merger between McCaw cellular and AT&T. McCaw was the largest competitor in the rapidly growing cellular telephone communications industry. AT&T was the dominant competitor in long-distance telephone communications in the United States, and one of the largest corporations. Prior to the negotiations, it had no position in cellular communications.
The merger between American Airlines and U.S. Airways is one that can be explained using static game theory models. The two players in the game would be American Airlines and U.S. Airways. Each one of the players would have something to gain from the merger, but they would also have something to lose. In this game American Airlines is our first player. American Airlines’ potential payoff is merging with a company that is maximizing profits, but is also lacking in the customer service department. U.S. Airways is player two, and in this game they are merging with a business that is suffering from chapter 11 bankruptcy, but is excelling in customer service.
American Airlines Group Inc. (AA) is the largest airline in the world. They seek to be an effectiveness organization that have better customer service, effective staff, and successful. In the following, the five stages of Organization Development process will use to implement the organizational development change process for the new “American Airlines Group Inc.”:
According to the case study both companies are in the merger process. During the process there are significant changers applied to the both companies. In this report pre and post-merger processes ware analyzed mainly using following change management theories and models,