Mergers : Mergers And Acquisitions

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.

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.

2. What are the differences among horizontal, vertical, and conglomerate mergers? Provide real-world examples of each type of merger. What policy do you think the US should follow toward mergers? Why?

A merger is basically a deal that unites two existing companies into one company. This is usually done to expand a company’s reach, expansion into new segments or simply to gain market share. There are different types of mergers that exist as a result of the different reasons that companies might have to merge. The 5 main types include:

there are three sorts of mergers: horizontal mergers, vertical mergers and combined. A horizontal merger is an amalgamation between two firms possibly dynamic in similar market at similar level of activity e.g. between two insurance firms whnventory networkile a vertical merger includes firms working at various levels of chain of supply e.g. an insurance firm obtaining a

Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.

3) Discuss the Pro’s and Con’s of a hostile versus friendly mergers, along with some data on how shareholders from each side have fared in past mergers.

Merger: “A merger is a combining of two or more companies to form a new company”. An example of a merger is the merging of JDS Fitel Inc. and Uniphase Corp. in 1999 to form JDS Uniphase.

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

The inherent business practice of acquiring other , usually competitive, companies is part of a risky but potentially big payout for the risk taker. To understand the true and relative impacts of mergers and acquisitions, it is necessary to examine organizations that both avoid and undertake these types of financial deals. The purpose of this essay is to examine two distinct companies and their business strategies in order to understand the practicality and feasibility of corporate mergers.

In order to have a successful M&A many different steps are involved. Each step in the process is just as important as the next and cannot be over looked. Some of the broader area’s that require focus are; accounting, taxes, and legal. Within each of these categories are several sub categories that are important to focus on when attempting to complete a successful merger or acquisition. While every organization may have a different process for doing so, and place more importance on one than another would, all of the aspects listed are important. However, it is up to each individual organization to designate how important each one is.

Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.

An effective communication to employees about strategy, targets, and initiatives is vital if employees are to contribute to the strategy. A merger is an agreement between the owners of two companies to combine the operations and brands of both companies into a new, single entity (Merge ahead, 2012). An acquisition occurs when one company purchases and either absorbs or sells another business, with or without the approval or the company's leadership. Mergers and acquisitions affect the employees of all companies involved in a number of ways, making effective and timely employee communication vital to ensuring that the transition flows as smoothly as possible.

Select a pair of organizations that have gone through a process of Merger and/or Acquisition (M&A), describe the culture of the organizations prior to the M&A. Provide examples that illustrate aspects of the organizational culture. Describe the process of M&A. Did the process succeed, if yes, please outline the reasons of success, impact, etc..? If the M&A did not succeed, why did it fail, impact, etc..? Give examples wherever appropriate.

From a legal point of view, ‘merger’, is a process that leads two or more companies cease to be distinct. (Enterprise act 2002). In other words, companies agree to combine their businesses into one entity for economical, operational or any other reasons on a voluntarily basis. Technically, this involves a foundation of a new firm and its shares issue which substitutes all shares of the merged companies. A typical example of a merger can be the formation of ExxonMobil which appeared after the merger of Exxon and Mobil in 1999. However, some cases of merger, especially cross-border mergers, are costly to perform an actual consolidation of all assets and, therefore, they create a holding company for the purpose of owning shares in merged firms, such as the merger of British Airways and Iberia Airlines that led to foundation of International Airlines Group in 2011 [SOURCE], although, both brands continued to exist and operate. Unlike the merger, acquisition does not lead to a new firm creation and allows ‘acquirer’ to take over a controlling stake in ‘target’ firm, while the ownership of all shares as well as assets of a target firm transferred to an acquirer, and, therefore, the target firm ceases to independently exist but acquirer does not. However, in practice, some cases of acquisitions can be claimed as a merger to avoid a negative assessment. Consequently, to define a real type of transaction, some post-deal attributes such as brands and