The Depquisition Of Berendsen

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.

The Organic growth process for expansion of business because of increasing entire customer base, new sales, increased output per representative or customer or any of these combination that opposes merger and acquisition (Rumyantseva et al, 2002). This strategy is beneficial because it is cheaper and other strategies as acquisition, and this also includes management teams to be able to

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. We will give examples to illustrate the two ways of growing.

In 2002, the Davis Service Group acquired Berendsen, a company operating in Denmark, Sweden, Norway, Austria, the Netherlands, Poland and Germany. Berendsen was an ideal acquisition because, like Sunlight, it was the market leader in providing textile services in its geographical area. was better for the Davis Service Group to take over Berendsen rather than set up a new rival company in Europe. Building on Berendsen”s local experience and local market contacts, Davis Service Group could buy into established networks and customer relationships.

Mergers and acquisitions in financial services business area are very common and result in consolidation of the business unit. Acquisition is beneficial for all sides involved and Santander's acquisition of Abbey National of the UK is an evidence of this. Abbey has a major position in the United Kingdom mortgage market. Its strong distribution network represents for Banco Santander and Abbey shareholders a valuable opportunity: application of Banco Santander's commercial and technological practices to Abbey's banking operations.

Precisely, mergers and acquisition is another name which is used for consolidation of two organizations. This happens when two separate organizations start operating combine. Merger are type of consolidation in which two different entities merge their operations and start operating as a single entity but acquisition is that type of consolidation of two organization in which one entity purchases the other one entity or organization or company which eventually starts operating as single entity. Many factors are needed to be considered before this phenomenon occurs. Above all, consent of both the organization is important whether they

There are various ways to grow a company. However, two major ways in which a company can grow is through inorganic and organic growth.

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

A merger refers to the process whereby at least two companies combine to form one single company. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry.

The two ways in which a company can grow are organic growth and inorganic growth.

Additionally, the changing industry conditions, particularly in the line of products and increased players in the industry impacted on the company’s business strategy; whereby it was forced to think about going beyond its niche market and expanding its operations in the global market. This means that the company had to accept financing from TA a venture capitalist in order to undertake the expansion process and at the same time to invest heavily in its current infrastructure to gain competitive advantage. Lastly, the company performance was impacted by its decision to acquire TTI as it enabled it to enter into the global market with ease as this company had already been established in the global market.

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 an amalgamation two or more companies are combined into one by merger or by one taking over the other. Therefore the term “amalgamation” contemplates two kinds of activities;

Merger can be defined as the combining of companies; the joining together of two or more companies or organisations and An Acquisition can be defined as the act of acquiring something According to the Encarta Dictionaries.