Mergers and Acquisition
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 firms. At this time of globalisation competition is increasing very rapidly and To face the challenges and explore the opportunities, firms are going for inorganic growth through various strategic alternatives like mergers and acquisitions, strategic alliances, joint ventures etc (kumar and bansal, 2008) . Mergers and acquisitions help the firm to get the valuable capabilities possessed by the acquired organizations to develop them internally in a shorter time (Karim and Mitchell, 2000). Besides having huge benefits, most of mergers and acquisitions still face many challenges. Still mergers and acquisitions fail to accomplish many strategic objectives. According to a survey, the results of mergers and acquisitions are: • From all of them, only 23 per cent of all acquisitions earn their cost of capital. • In acquired companies, 47 per cent of executives leave within the first year, and 75 per cent leave within the first three years. • In the first four to eight months that follow a deal, productivity may be reduced by up to 50 per cent. • Cultural issues are the top factors in failed integrations (Galpin and Herndon, 2000:2).
Objectives of research: 1. Why mergers and acquisitions arise? 2.
[pic] [pic] [pic]
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 firms. At this time of globalisation competition is increasing very rapidly and To face the challenges and explore the opportunities, firms are going for inorganic growth through various strategic alternatives like mergers and acquisitions, strategic alliances, joint ventures etc (kumar and bansal, 2008) . Mergers and acquisitions help the firm to get the valuable capabilities possessed by the acquired organizations to develop them internally in a shorter time (Karim and Mitchell, 2000). Besides having huge benefits, most of mergers and acquisitions still face many challenges. Still mergers and acquisitions fail to accomplish many strategic objectives. According to a survey, the results of mergers and acquisitions are: • From all of them, only 23 per cent of all acquisitions earn their cost of capital. • In acquired companies, 47 per cent of executives leave within the first year, and 75 per cent leave within the first three years. • In the first four to eight months that follow a deal, productivity may be reduced by up to 50 per cent. • Cultural issues are the top factors in failed integrations (Galpin and Herndon, 2000:2).
Objectives of research: 1. Why mergers and acquisitions arise? 2.
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