JP Morgan Corporation: Effectiveness and Efficiency of Mergers and Acquisitions
The Effectiveness and Efficiency of Mergers and Acquisitions by the Example of JP Morgan Corporation
Julia Kravchuk
3rd year student of International Relations Department
KROK University
Submitted in partial fulfillment of the requirements of the Business English course
Lecturer: Tetyana Karpova
June 2011
Abstract
Mergers and acquisitions are considered to be quite effective methods for a company’s growth, its development and, what is more, decrease in the number of competitors by taking them over. As a result, many economists all over the world try to analyze and explain possible outcomes of different integrations. Their opinions and given definitions can be freely found in the Internet. However, this theory should be proven by some specific examples. Therefore, the aim of the paper was to find out whether the merger between JP Morgan Chase & Co and Bank One Corporation was worth doing or not. The results of the research, which were clearly described by various graphs, showed that the integration between the two financial giants had positive influence on the companies’ performance and further functioning.
Introduction
In the modern world of growing economy and globalization, companies on both domestic and international markets struggle to achieve the optimum market share possible and, thus, increase their profits. Nowadays, the most popular way to do this is mergers and acquisitions, which allows to create huge corporations and to beat the competitors. However, there are some negative as well as positive consequences of such method. That is why each particular situation should be analyzed in details. In order to understand clearly all the aspects of integrations and their types, specialized literature and experts’ opinions are available, mostly in the World Wide Web. Furthermore, the theoretical part should be supported by a practical side of the question. That is why this research paper represents an example of a merger between two financial
Julia Kravchuk
3rd year student of International Relations Department
KROK University
Submitted in partial fulfillment of the requirements of the Business English course
Lecturer: Tetyana Karpova
June 2011
Abstract
Mergers and acquisitions are considered to be quite effective methods for a company’s growth, its development and, what is more, decrease in the number of competitors by taking them over. As a result, many economists all over the world try to analyze and explain possible outcomes of different integrations. Their opinions and given definitions can be freely found in the Internet. However, this theory should be proven by some specific examples. Therefore, the aim of the paper was to find out whether the merger between JP Morgan Chase & Co and Bank One Corporation was worth doing or not. The results of the research, which were clearly described by various graphs, showed that the integration between the two financial giants had positive influence on the companies’ performance and further functioning.
Introduction
In the modern world of growing economy and globalization, companies on both domestic and international markets struggle to achieve the optimum market share possible and, thus, increase their profits. Nowadays, the most popular way to do this is mergers and acquisitions, which allows to create huge corporations and to beat the competitors. However, there are some negative as well as positive consequences of such method. That is why each particular situation should be analyzed in details. In order to understand clearly all the aspects of integrations and their types, specialized literature and experts’ opinions are available, mostly in the World Wide Web. Furthermore, the theoretical part should be supported by a practical side of the question. That is why this research paper represents an example of a merger between two financial
References: M&A - Mergers and Acquisitions. Available at: http://www.quickmba.com/finance/mergers-acquisitions/ [accessed 29/05/11] The Free Encyclopedia Wikipedia. Available at: http://en.wikipedia.org/wiki/Mergers_and_acquisitions#cite_note-8 and http://en.wikipedia.org/wiki/J.P._Morgan_Chase#Jefferson_County.2C_Alabama [accessed 29/05/11] The Beechmond Crest Publishing. Available at: http://www.beechmontcrest.com/horizontal_vertical_mergers.htm [accessed 29/05/11] MacKenzie, I. (2006). Professional English in use. Cambridge: Cambridge University Press. CNN Money (2004). J.P. Morgan to buy Bank One for $58 billion. Available at: http://money.cnn.com/2004/01/14/news/deals/jpmorgan_bankone/ [accessed 29/05/11]