Mergers and Acquisition

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Do Mergers and Acquisitions always bring desired results? Individual Assignment

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Student Name: Mandeep Kaur (10211855) Module Leader: Simeon Scott Course: MA- IBM

Introduction: For my research topic I have chosen this topic to analyse and to investigate about the mergers and acquisitions of organisations. Do these mergers and acquisitions always bring desired results or not. Mergers and acquisitions are very common and occur everywhere i.e. in organizations, administrative units and businesses in all industries and of all sizes specially in banking sector and in pharmaceutical
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For example when a manufacture company buy or merge with another component maker company, called a vertical merge (Stacey, 1970:33).

Literature review: Different tools and techniques in the forms of ratio analysis etc. are used by scholars to identify the effects of mergers and acquisitions and interestingly different results are there in the market. Performance can be measured on the basis of long-term and short-term time period; long-term performance can be checked on the basis of profitability of the firm. Fundamental analysis of the company with the help of ratio analysis (kumar & bansal, 2008)
Motives for mergers and acquisitions: in economic terms a merger or acquisition will only be worthwhile if combining the two businesses will lead to gains which would not arise if the two business stayed apart. In financial terms, the present value of bidding business plus, the present value of target business plus, a gain in terms of increased income or reduced expenses from combining (Samuels, wilikes and brayshaw, 1996).
Acquisitions as transformation category:
As compared with other types of transformation in a company, the characteristics of an acquisition is that it can include almost all other transformation categories.The employees in the acquired organization must go through a number of technical changes: new frame of reference, new organization, new business model, new rules and processes, different working conditions, privileges, etc. It

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