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
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restructuring their operations around their core business activities through mergers and acquisitions. 2. TITLE OF THE PROBLEM :- It is true that dramatic events like mergers‚ acquisitions‚ takeovers‚ restructuring and corporate controls occupy the Indian business news papers almost daily. Further they have become central focus of public and corporate policy issues. Some assert that the activities of mergers and acquisitions represent a new force in creativity and productivity. Some other
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As a general rule‚ mergers and acquisitions (M&A) are value destructive for shareholders. Demergers or spin-offs are value accretive. In simple English‚ that means‚ avoid the shares of an acquiring company. But there may be money making opportunities in the companies being demerged or spun off. There is a difference between a merger and an acquisition. Mergers are rare‚ as they happen between two companies that are equal in size and reach. Both companies lose their individual identities‚ and a
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23: Mergers and Other Forms of Corporate Restructuring After studying Chapter 23‚ you should be able to: Chapter 23 Explain why a company might decide to engage in corporate restructuring. Understand and calculate the impact on earnings and on market value of companies involved in mergers. Describe what benefits‚ if any‚ accrue to acquiring company shareholders and to selling company shareholders. Analyze a proposed merger as a capital budgeting problem. Describe the merger process
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Selection and Valuation of Cross-Border Mergers and Acquisition – Literature Review (c) copyright 2009 ABSTRACT The longstanding debate over the efficacy of M&A as a mode of business growth continues to separate practitioners and academics. While M&A global volume looks likely to return to US$2 trillion levels following a rebound from year 2000 lows‚ the largely economics-oriented research literature overwhelmingly concludes that M&A at best achieves zero real gains for the
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Motives and Effects of Mergers and Acquisitions by JUANJUAN WANG September 2007 A dissertation presented in part consideration for the degree of MA in Finance and Investment Acknowledgements I would like to take this opportunity to express my sincere appreciation to all those people who helped me complete this dissertation. Firstly‚ I do appreciate my supervisor Ms. Lynda Taylor’s assistance. She gave me valuable feedback and guidance throughout this dissertation. In addition‚ I
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voluntary merger. There was significant value addition of HDFC in terms of increase branch network‚ geographic reach‚ customer base and a bigger pool of skilled manpower. For HDFC Bank‚ this merger provided an
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manager should attempt to manage sensitive information about the firm. 4. In the long run‚ a successful acquisition is one that: enables the acquirer to make an all-equity purchase‚ thereby avoiding additional financial leverage. enables the acquirer to diversify its asset base. increases the market price of the acquirer’s stock over what it would have been without the acquisition. increases financial leverage. 5. Bidding companies often pay too much for the acquired firm.
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HKU701 JIANGYONG LU ZHIGANG TAO EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION In December 2006‚ eBay Inc.‚ a US company that offered e-commerce‚ e-payments and internet communication services globally‚ announced its plan to form a joint venture with China-based online portal and wireless operator‚ TOM Online‚ in which eBay would have 49% ownership.1 The move reflected the increasing difficulties foreign internet companies were facing in their attempts to snatch a share of the Chinese
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June 2010 Perspectives on merger integration Table of contents 5 A new generation of M&A: A McKinsey perspective on the opportunities and challenges Despite continued uncertainty‚ signs point to a surge in M&A activity that will be ambitious in both scope and profile. 11 Beyond risk avoidance: A McKinsey perspective on creating transformational value from mergers Most mergers are doomed from the beginning. Anyone who has researched merger success rates knows that roughly
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