The Davis Service Group And Its Takeover Of Berendsen Essay

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.

Should businesses use aggressive forms of external growth (such as takeovers) or should they rely on less hostile options (such as mergers)?

In this integration two or more entities come together to combine and share their resources to achieve common objectives. According to literature ‘Merger’ is a combination of organizations, where both the merging companies wish to join as one and do so on normally equal terms and which “create an organization where neither party can be seen as acquirer”. In other words it is a collaboration of two or more firms into one, through a purchase acquisition or a pooling of interests.

In today’s world, Mergers and Acquisitions often occur within the companies and it business, definition of Mergers and Acquisition based on (Investopedia LLC, 2015) is an act of business between two company to form into whole new company by becoming into one, while acquisitions is a business action to undertake other business or company by buying over it without even changing anything except ownership.

According to Jimmy, 2008; Alao 2010 the term Merger, “refer to the combination of two or more organizations into one larger organization. Such actions are commonly voluntary and often result in a new organizational name (often combining the names of the

The two ways in which a company can grow is Inorganic Growth and Organic Growth

merging or taken over. In horizontal integration is when two companies at the same stage

Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.

1. Two major ways in which a company can grow are organically and inorganically (Davis, n.d.). Organic growth is growth that is achieved within an existing business, by increasing sales and number of clients to increase profitability. Organic growth can be achieved many ways. The easiest way is if a firm’s product is in high demand

merging or taken over. In horizontal integration is when two companies at the same stage

The merger means that two firms take up an agreement to operate jointly with each other, utilizing

Mergers and acquisitions, better known as M&A, is a “…term used to refer to the consolidation of companies” (Investopedia, 2014). “Mergers can allow companies to combine forces and stake out a greater portion of market share” (Alli, 2010). A company may choose to merge with or acquire another company for a multitude of reasons such as “…maximize[ing] shareholder value. (Ferris & Petitt, 2013)”

In merger: The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stocks. Two companies become one, decison is mutual. They are not idependent anymore

In simple terms, a merger may be regarded as the fusion or absorption of one thing or right into another. A merger has been defined as an arrangement whereby the assets, liabilities and businesses of two (or more) companies become