Bus499Assignment 3
Assignment 4 Merger, Acquisition, and International Strategies
Business Administration Capstone BUS499005VA016 Ms. Acquay
December 2, 2012 Merger Strategy
Wells Fargo completed its merger with Wachovia Corporation on December 31, 2008. The strategy that led to this merger is to create what Wells Fargo believes to be a compelling value proposition for our team members, customers, communities and shareholders with significant potential for even more market share growth. (Wells Fargo – News Releases) The text states that effective acquisitions have characteristics such as the acquiring and target firms have complementary resources that are the foundation for developing new capabilities; the acquisition is friendly, thereby facilitating integration of the firms’ resources; the target firm is selected and purchased based on through due diligence; the acquiring and target firms have considerable slack in the form of cash or debt capacity; the newly formed firm maintains a low or moderate level of debt by selling off portions of the acquired firm or some of the acquiring firm’s poorly performing units; the acquiring and acquired firms have experience in terms of adapting to change; and R&D and innovation are emphasized in the new firm. (Hitt 2013) Since Wells Fargo acquired Wachovia Corporation the results have been out outstanding. Wells Fargo has achieved a record net income for the third consecutive year, up 28 percent to $15.9 billion. (Annual Report 2011)
Corporation that could benefit from a Merger I see Whirlpool as being a profitable candidate for a corporation to acquire or merge with because they are a household name. Whirlpool has produced great appliances since 1908 and based on the vision of one family and a business failure. Louis Upton invested his venture to manufacture household equipment. (Whirlpool Responsibility Overview) So Whirlpool would be a profitable target because of its longevity and determination to excel its business
Business Administration Capstone BUS499005VA016 Ms. Acquay
December 2, 2012 Merger Strategy
Wells Fargo completed its merger with Wachovia Corporation on December 31, 2008. The strategy that led to this merger is to create what Wells Fargo believes to be a compelling value proposition for our team members, customers, communities and shareholders with significant potential for even more market share growth. (Wells Fargo – News Releases) The text states that effective acquisitions have characteristics such as the acquiring and target firms have complementary resources that are the foundation for developing new capabilities; the acquisition is friendly, thereby facilitating integration of the firms’ resources; the target firm is selected and purchased based on through due diligence; the acquiring and target firms have considerable slack in the form of cash or debt capacity; the newly formed firm maintains a low or moderate level of debt by selling off portions of the acquired firm or some of the acquiring firm’s poorly performing units; the acquiring and acquired firms have experience in terms of adapting to change; and R&D and innovation are emphasized in the new firm. (Hitt 2013) Since Wells Fargo acquired Wachovia Corporation the results have been out outstanding. Wells Fargo has achieved a record net income for the third consecutive year, up 28 percent to $15.9 billion. (Annual Report 2011)
Corporation that could benefit from a Merger I see Whirlpool as being a profitable candidate for a corporation to acquire or merge with because they are a household name. Whirlpool has produced great appliances since 1908 and based on the vision of one family and a business failure. Louis Upton invested his venture to manufacture household equipment. (Whirlpool Responsibility Overview) So Whirlpool would be a profitable target because of its longevity and determination to excel its business
References: Hitt, Michael A.; Ireland, Duane R.; Hoskisson, Robert E. (2013). Retrieved on December 2, 2012 from Wells Fargo Annual Report 2011 http://www.wellsfargo.com/annualreport Retrieved on December 3, 2012 from Wells Fargo + Wachovia http://www.wellsfargo.com/downloads/pdf/press/WFC_WACHOVIA_100308.pdf Retrieved on December 3, 2012 from Wells Fargo – News Releases https://www.wellsfargo.com/press/2009/20090101_Wachovia_Merger Retrieved on December 3, 2012 from Whirlpool Responsibility Overview/About Overview http://www.whirlpoolcorp.com/responsibility/overview.aspx Retrieved on December 4, 2012 from Lennar Corporation – About Lennar http://www.lennar.com/about/about