Real World Cross Border Mergers And Acquisitions

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These few years, cross-border mergers and acquisitions have increased, accelerating the globalization of manufacturing and restructuring industrial structure at the worldwide level (Kang, N. and S, Johansson., 2000). Wal-Mart is one of the examples of real world cross-border mergers and acquisitions; this can enlarge the market reach. Wal-Mart was founded by Sam Walton with a single store in Rogers, Arkansas in 1962 and has grown to the world’s largest retailer, its headquarters are in Bentonville, Arkansas, United States. Wal-Mart extended its market by acquiring the biggest local retailer Massmart at South Africa, is also operates as ASDA in the United Kingdom and Seiyu in Japan. This increased Wal-Mart 's client base and has made Wal-Mart better known to the world (Z, Nie., 2013).

The process of acquiring an enterprise anywhere is the world has three elements: 1), identification and valuation of the target; 2), completion of the ownership change transaction (the tender); 3), the management of the post-acquisition transition (Moffett, M. H., Stonehill, A. I., & Eiteman, D. K., 2003).

First of all, the first component when acquiring new firm is the identification and valuation of the target. This component requires a well-defined corporate strategy and focus. Identification stage of the target market typically comes before the identification of the target firm, which highly developed markets offer wide choice of publicly traded companies to select from. Valuation stage
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