Will an Acquisition Help or Hinder Your Business? Essay

1. If you get it right, there can be many good reasons why buying an existing business could make good business sense. Remember though, that you will be taking on the legacy of the

The advantages to an acquisition are immense. First, it offers a high level of control – the acquisition is subject to the leadership of Southern Company. In addition, the assets of the acquisition allow for a quick, large-scale market entry; Southern Company will benefit from inherited PP&E. Furthermore, an acquisition avoids entry barriers into a foreign market and gives access to acquired firm’s skills. Not to be overlooked, but the acquired firm’s expertise can have a large influence on the success of the acquisition; this will be discussed further in strategy. Overall, the new subsidiary will act as its own division under Southern Company – it will have its own functional divisions.

Each of the approaches for expansion – IPO, Acquisition, or Merger – also has weaknesses. An IPO can be expensive and may require 15-25% of the money raised to cover the costs of raising capital in this way. An IPO also requires a tremendous amount of reporting to meet the requirements of the SEC, both for the initial offering and for the future publicly traded company, which not only requires the time and effort of staff members but may also give valuable information to the company’s competitors. All this reporting then creates legal liability for errors and omissions in the prospectus, which adds a further layer of complication. In the end, the former owners lose some control over the business and must share future wealth with the new shareholders. Mergers

Firms are acquired for a number of reasons. In the 1960s and 1970s, firms such as Gulf and Western and ITT built themselves into conglomerates by acquiring firms in other lines of business. In the 1980s, corporate giants like Time, Beatrice and RJR Nabisco were acquired by other

The advantages of asset purchase for the management team are that they retain ownership of the shares of stock of the business because only assets and liabilities, which are specifically identified in the purchase agreement, are transferred to the buyer. They can still control the operation and employees assignment. However, the transactions of Asset purchase are generally more complicated because ownership of the assets and liabilities and any related contracts must actually

First, consider the reasons for the potential acquisition and whether the parties’ objectives can, in fact, be met. If a rural practice group is losing money and faced with closure, and a local hospital fears the loss of key specialists to meet specialized healthcare needs in their community, it may make sense for the hospital (or a related entity) to employ the physicians and their staff. But

Personally, I don’t think that expanding only by acquisition is a good idea in the long run. Because, more often than not, the strategic assets of the firm being acquired and the firm that is acquiring are not in complete sync with each other. Also, I believe that expanding through acquisition is not a continous process and hence, the resultant bursts of extra demand that is generated might adversely impact the core competencies of Crocs which is its excellent supply chain network. It is of paramount importance for Crocs to ensure that its traditional core competencies are used to the maximum even after

My feelings mirror those of a text I studied while in college that holds deep value for me and the way I feel about the company’s position moving forward. The text is that of Jim Collins entitled Good to Great . In it, the author explains that while in a transition period, a company should not make irrational acquisitions that do not align with the core of our business model. It describes how this action may lead to many unseen side effects, such as confusion in the market place, lack of employee support, an exodus of leadership that do not believe in the move and an overall negative growth of business.

If they would build the company threw acquisitions it take company away the company away from what they are best at and that is supply chain management and marketing low cost same cost all the time even after sales session, with acquisition they would be more forced to use their own factories as to use their own companies, and this could create

1.plan purchases and acquisitions – determining what to purchase or acquire and determining when and how .

By purchasing assets: 1) It is easier to minimize the buyer’s potential liability for claims against the business which arise before the acquisition date; 2) The buyer gets an aggregate tax basis for the assets equal to his purchase price,

“Most research indicates that M&A activity has an overall success rate  of about 50%—basically a coin toss.” (Robert Sher). A research needs to be carried out to minimize the possibility of failure of the takeover. The investment of 35 billion pounds should be guaranteed with more success rather than 50/50. The change management strategy should be used

Acquisition means “an asset or object bought or obtained”. ISO/IEC 38500 defined acquisition as it balances benefits, opportunities, costs and risks in both short and long term [7]. Also, the delivery of acquisition contributes valid reasons in decision making.

Total ownership costs usually provide cost basis, which helps in determining the total economic value of a certain investment. Examples include economic value added, rapid economic justification, return on investment and internal rate of return. Analysis of the total cost of ownership includes operating costs as well as total costs of acquisition (Contract management. 2006). This analysis helps in gauging the viability of any capital investment in an organization. An organization may use the analysis as a comparison tool for its products. Total ownership costs relate directly to the organization's

It serves as a reference to co-researchers who will conduct research with relation to the topics in the study.