Merger Is The Merging Of Jds Fitel Inc. And Uniphase Corp

There are certain benefits that derived from the merger, which would also boost the operations and financial performance of the organization.

With reference to your own research and the item above, do you think that takeovers and mergers inevitably improve the performance of the businesses involved?

Merging with another organization has downfalls of destroying wealth from the merger. Considering the buying price is important when merging, spending too much on the merger will impound the value after the merger. Some mergers do not create wealth so capital is lost through the merger. There is no guarantee of financial gain and every formula considered with focus, just as with an acquisition. The final decision dictated by the variables. One company merging with another company takes the debt and losses of those companies in the new formed company.

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

It is process of a company taking over another offering same products or services that origi-nal company offers. Companies are in same line of business. Often competitors can be the target companies. Major motives for such mergers could be the economies of scale and en-hancement of market power with the reduction in competition (Arnold 2002). A merger of Walt Disney and Lucas Film in October 2012 is an example of Horizontal Mergers.

What is a merger? Most people would think that it is some sort of combination of two or more companies to be one. A simple synonym describing this noun would be a: combination, fusion, integration, confederacy or even an incorporation. Common small business approach of a merger is to make all work efficient and at a reduced cost to promote new products and services within another venture doing roughly the same ratio of productivity. Within the mergers concept, there is often a term used as discounted cash flow (DCF). This logic is strictly for assessment of the companies. There are both advantages and disadvantages for DCF. The advantages of this model allow for changes in cash flows in the future. Cash flows are estimated based on their value

An additional reason Conglomerate Mergers became popular is the view that the business cycle affects different industries at different times. Thus, a firm with operations in many different industries would have some divisions expanding when other divisions were

One major objective of mergers is to be able to reduce or fully eliminate the weaknesses that may exit in

Mergers and acquisitions can be classified in terms of the direction of the growth. A horizontal merger/takeover is the combining of two firms in the same stage of production, for example Well come Pharmaceuticals merged with Glaxo Pharmaceuticals. This sort of integration takes place to combat competition from the market and secure market domination; to reduce risks and increase financial strength; and to compete in

In recent times, merger and acquisition are considered as one of the important steps for strategic growth. A company can plan to merge or acquire another company if it thinks it is a good investment, or they will earn a sound investment from it. The primary goal of any company entering into merger or acquisition is to boost the shareholder wealth. From a financial perspective, merger is carried due to diversification. It is the process of reducing the risks through investment decisions. For example, many a times, a company is highly at risk since it has done enormous investment in one industry then it can intend to buy a business in another industry (Sky Plc, 1990). This is termed as acquisition and can be beneficial for the host country.

There can be many good reasons for developing and growing your business through a merger or an acquisition. Those benefits may include but are not limited to the following:

The key behind the M&A (merger and acquisition) is the requirement and creation of synergy. When two companies join in the reasonable manner the resulting entity has better economies of scale, optimal utilization of resources and much efficient presence of market, all of these result in high profits and sustainability in competitive advantage.

Another type of acquisition is a reverse merger, a deal that enables a private company to get publicly-listed in a relatively short time period. A reverse merger occurs when a private company that has strong prospects and is eager to raise financing buys a publicly-listed shell company, usually one with no business and limited assets. The private company reverse merges into the public company, and together they become an entirely new public corporation with tradable shares. Regardless of their category or structure, all mergers and acquisitions have one common goal: they are all meant to create synergy that makes the value of the combined companies greater than the sum of the two parts. The success of a merger or acquisition depends on whether this synergy is achieved.

Why do mergers take place? It is believed that mergers and acquisitions are strategic decisions leading to the maximization of a company's growth by enhancing its production and marketing operations. They have become popular in the recent times because of the enhanced competition, breaking of trade barriers, free flow of capital across countries and globalization of business is a number of economies are being deregulated and integrated with other economies. A number of reasons are attributed for the occurrence of

There are many reasons why these two are considered as the economical justifiable terms but some of the points are as follows : Tax considerations - as mentioned above it is very important aspect when merger happens because with it the capital structure of the organizations. For instance let us assume that there are two companies, company A and company B. They are deciding the merge. Here company A is very high turnover and also the profit is outstanding thus the tax obligations is very high and the company B runs in the debt. Thus if these companies unite the tax liability of Company A will reduce and thus money can be reduced for going out. Even in future the tax liability will be less then it is in existing situation. Synergy - This is also referring to the stakeholders and merging companies. The origin of the synergy can be done by many reasons they are a) financial economies, b) two separate management strength, c) operating economies d) by the union of two companies the market power will increase and also the competition will decrease. Thus synergy and tax considerations are main and justifiable in this situation.