Preview

Cross Border Mergers & Acquisitions

Good Essays
Open Document
Open Document
1297 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cross Border Mergers & Acquisitions
SEMINAR REPORT

CROSS BORDER MERGERS & ACQUISITIONS

INTRODUCTON Mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can aid, finance, or help an enterprise grow rapidly in its sector or location of origin or a new field or new location without creating a subsidiary, other child entity or using a joint venture. The distinction between a "merger" and an "acquisition" has become increasingly blurred in various respects (particularly in terms of the ultimate economic outcome), although it has not completely disappeared in all situations 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 for the stock is generally termed as the acquisition of companies.
Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions were unsuccessful.[1] The acquisition process is very complex, with many dimensions influencing its outcome. Increase in acquisitions in our global business environment has pushed us to evaluate the key stake holders of acquisition very carefully before implementation. It is imperative for the acquirer to understand this relationship and apply it to its advantage. Retention is only possible when resources are exchanged and managed without affecting their independence.

MERGERS & ACQUISITIONS An acquisition is the purchase of one business or company by another company or other business entity. Consolidation occurs when two companies combine together to form a new enterprise altogether, and neither of the previous companies survives independently. Acquisitions are divided into "private" and "public" acquisitions, depending on whether

You May Also Find These Documents Helpful

  • Better Essays

    In regards to acquisitions, it is important to distinguish between mergers and acquisitions. In a merger, two companies come together and create a new entity. In an acquisition, one company buys another one and manages it consistent with the acquirer’s needs. An acquisition that involves integration has greater staffing implications than one that involves separation (Rizvi, 2008). A combining of companies is a major change. Mergers and acquisitions represent the end of the gamut of options companies have in combining with each other. It is the mergers and acquisitions that are the combinations that have the greatest implications for size of investment, control, integration requirements, pains of separation, and people management issues (Doz and Hamel, 1998).…

    • 3253 Words
    • 14 Pages
    Better Essays
  • Better Essays

    Horizontal Mergers

    • 907 Words
    • 4 Pages

    Mergers occur when one business firm buys or acquires another business firm (the acquired firm) and the combined firm maintains the identity of the acquiring firm. Business firms merge for a variety of reasons, both financial and non-financial. There are a number of types of mergers. Horizontal and non-horizontal are just two of many types.…

    • 907 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Gm Merger Acquisition

    • 717 Words
    • 3 Pages

    Companies from different industries decide to use an acquisition strategy for several reasons; however, acquisition strategies are not without problems. When acquisitions contribute to poor performance, a company may deem it necessary to restructure its operations.…

    • 717 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Merger. Research Proposal

    • 4518 Words
    • 19 Pages

    When we use the term "merger", we are referring to the merging of two companies where one new company will continue to exist (Rick MacMilman cited Shay, Donald, et al. “Speed Makes the Difference: A Survey of Mergers and Acquisitions,”). The term…

    • 4518 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Edward Jones Case

    • 4171 Words
    • 17 Pages

    P. C. Haspeslagh & Jemison, D. B. “Acquisitions – Myths and reality”, Sloan Management Review, Winter 1987, pp. 53-58.…

    • 4171 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    Communication Plan

    • 1637 Words
    • 7 Pages

    Krug, et al. (2008). Merger and Acquisition Lead to long term Management Turmoil. Newswise Retrieved from http://www.newswise.com/articles/view/542588/…

    • 1637 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    In a dynamic world like ours, company mergers and acquisitions are ordinary occurrences. Companies turn to these processes to survive the ever competitive world of business. These are acts that basically consolidate companies as one.…

    • 1043 Words
    • 5 Pages
    Better Essays
  • Better Essays

    In a dynamic world like ours, company mergers and acquisitions are ordinary occurrence. Companies turn to this process to survive the ever competitive world of business. It is basically an act that consolidates companies as one.…

    • 999 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Many successful businessmen and women have concluded that the most successful acquirers are also the most disciplined. In order to secure a lucrative and profitable acquisition all strategic alternatives ought to have been considered and prudently explored. Furthermore, a clear operating strategy post-acquisition is something that must be in place pre- acquisition. Despite this notion, many acquisitions seem to be driven by an urge to generate synergy, without any specific operating strategies in place.…

    • 2543 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Ebay Strategic Management

    • 3830 Words
    • 16 Pages

    In the recent times, Mergers and acquisitions have become quite common due to the fact that the competition in business has grown. Also, economic recession has led to the strategic concept of acquiring and merging businesses.…

    • 3830 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    2. A merger in which an entirely new firm is created and both the acquired and acquiring…

    • 6160 Words
    • 25 Pages
    Satisfactory Essays
  • Powerful Essays

    International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.…

    • 2095 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Mergers and Acquisitions: occur when a transfer of existing assets from local firms to foreign firms takes place. Cross-border mergers occur when the assets and operation of firms from different countries are combined to establish a new legal entity. Cross-border acquisitions occur when the control of assets and operations is transferred from a local to a foreign company, with the local company becoming an affiliate of the foreign…

    • 4509 Words
    • 19 Pages
    Better Essays
  • Powerful Essays

    France Air-Klm Merger

    • 9288 Words
    • 38 Pages

    Introduction Mergers and acquisitions (M&As) have become the dominant mode of growth for firms seeking competitive advantage in an increasingly complex and global business economy (Adler, 1997). Nevertheless, M&As are beset by numerous problems (Newburry and Zeira, 1997), with 50 per cent of domestic acquisitions – and 70 per cent of cross-border acquisitions – failing to produce intended results (Capron, 1999). Scholars have examined these problems in terms of strategic market entry choice (Hennart and Park, 1993), market valuations (Jensen and Ruback, 1983), value creation (Haspeslagh and Jemison, 1991) and firm performance (Galbraith and Stiles, 1984; Chatterjee, 1986; Blackburn and Lang, 1989), finding that difficulties in M&As trace to a lack of a…

    • 9288 Words
    • 38 Pages
    Powerful Essays
  • Satisfactory Essays

    a story

    • 2171 Words
    • 9 Pages

    Câu 3: My parents were strict. They wouldn’t let me to stay out late in the evening.…

    • 2171 Words
    • 9 Pages
    Satisfactory Essays