Mergers & Acquisitions
Mergers and Acquisitions in Global Scenario
By
Shahwar Gul
In the post- liberalization era, the demand for intense growth and development in business has paved the way for the companies to undergo the process of amalgamation, takeover, reconstruction and re-organization. Mergers and acquisitions have become imperative tools in structuring a new generation of organizations with the clout and resources to withstand and compete on a global basis.
The field of M&A has undergone drastic and dramatic changes over the previous decades. The daily newspapers are filled with case studies of M&A, corporate re-structuring, changes in ownership structures and struggles for corporate control. This subject matter plays an active role under the dominance of business enterprises on a global platform.
Keywords: Mergers and Acquisitions, globalization, Scenario
INTRODUCTION
Universally being accepted as a corporate strategy, financial and management policy; Mergers and acquisitions have been practiced worldwide in myriad industries and sectors within and across the nations’ boundaries for guarding and shielding the corporate, business, market share and market power. In developed nations like in USA, Japan and European nations, mergers and acquisitions are a regular phenomenon of combinations and restructuring of the companies. Cross-border mergers and takeovers have become a major force behind the surge of foreign direct investment.
Mergers and acquisitions have emerged as an eminent tool for the growth of global corporate in the last few years. The companies are not solely looking for acquiring companies within its nation but abroad too. Raising the fundamental and complex financing structure issues both for business decisions and for public policy formulation is the priority of the M&A deal. The handling of cultural differences, HR issues and changed environment requires proper due diligence procedures. The success story of any growing corporate is the strength of
By
Shahwar Gul
In the post- liberalization era, the demand for intense growth and development in business has paved the way for the companies to undergo the process of amalgamation, takeover, reconstruction and re-organization. Mergers and acquisitions have become imperative tools in structuring a new generation of organizations with the clout and resources to withstand and compete on a global basis.
The field of M&A has undergone drastic and dramatic changes over the previous decades. The daily newspapers are filled with case studies of M&A, corporate re-structuring, changes in ownership structures and struggles for corporate control. This subject matter plays an active role under the dominance of business enterprises on a global platform.
Keywords: Mergers and Acquisitions, globalization, Scenario
INTRODUCTION
Universally being accepted as a corporate strategy, financial and management policy; Mergers and acquisitions have been practiced worldwide in myriad industries and sectors within and across the nations’ boundaries for guarding and shielding the corporate, business, market share and market power. In developed nations like in USA, Japan and European nations, mergers and acquisitions are a regular phenomenon of combinations and restructuring of the companies. Cross-border mergers and takeovers have become a major force behind the surge of foreign direct investment.
Mergers and acquisitions have emerged as an eminent tool for the growth of global corporate in the last few years. The companies are not solely looking for acquiring companies within its nation but abroad too. Raising the fundamental and complex financing structure issues both for business decisions and for public policy formulation is the priority of the M&A deal. The handling of cultural differences, HR issues and changed environment requires proper due diligence procedures. The success story of any growing corporate is the strength of
References: * Saple, Vardhana,: “Diversification, Mergers and their Effect on Firm Performance: A Study of the Indian Corporate Sector”. Unpublished Ph.D. thesis submitted to Indira Gandhi Institute of Development Research, Mumbai, 2000. * Scherer, F.M * SEBI : Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997, SEBI, Mumbai. 1997 * Singh, H * Weston, J.F., and S.K. Mansinghka, : “Tests of the Efficiency Performance of Conglomerate Firms”, Journal of Finance, September, 1971, pp 919-936.