management of working capital and the optimal financial strategies employed is presented. Also evaluated are the potential improvements in financial performance along with long-term and short-term strategies. Lastly‚ considered in this paper is whether a merger or acquisition would affect SWA ’s employed strategic outlook. The financial challenges facing the company in the working capital management simulation showed how companies are able to play a balancing act with incoming and outgoing cash flow floats
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Fredericks of Hollywood‚ the bawdy women’s undergarment firm‚ is transforming into an innovative worldwide brand. The mechanism for each of these transformations was the reverse takeover (RTO). The reverse takeover‚ also referred to as “reverse mergers‚” is a relatively new topic of growing interest to academics. Academic research is scant because RTOs involve a relatively small number of firms; the RTO is principally viewed as a financial move of importance to venture capitalists; and‚ it is typically
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M&A Motives There are two types of motives involved in merger and acquisition and these are Explicit and Implicit motives. Explicit Motives • Synergy: Synergy means that the merged firm will have a greater value than the sum of its parts as a result of enhanced revenues and the cost base. • Economies of Scale: Economic of scale refer to the reduction in unit cost achieved by producing a large volume of a product. Horizontal mergers aim at achieving economies of scale. This phenomenon continues
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overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. Cooperation Strategies Cooperation Strategies contains of 3 aspects : 1. Joint Venture / Partnering 2. Merger / Acquisition 3. Strategic Alliance Cooperation Strategies Definition : Is a popular strategy that occurs when two or more companies form a temporary partnership for the purpose of capitalizing on some opportunity. Joint Venture / Partnering
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what the probability was that booth the DOJ and the Ec would approve the merger‚ and of course eventually what is the most proper and profitable tactic to take at this certain time. The strategy of Gallionelli Gallinelli did the strategy that included buying shares in Honeywell and shorting shares in GE for the purpose of conducting arbitrage. First of all‚ a well-known direct of indirect by-product of acquisition or merger is the foreseeable or predictable change in stock price. As to the merger’s
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Journal of Banking & Finance 23 (1999) 255±285 Interest-rate exposure and bank mergers Benjamin Esty a‚* ‚ Bhanu Narasimhan b‚ Peter Tufano c a b Harvard Business School‚ Morgan Hall 481‚ Boston‚ MA 02163‚ USA Marakon Associates‚ 2831 Malabar Ave.‚ Santa Clara‚ CA 95051‚ USA c Harvard Business School‚ Morgan Hall 377‚ Boston‚ MA 02163‚ USA Abstract This study examines how interest rates and interest-rate exposures aect the level of acquisition activity‚ the identities
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businesses come together via a merger or a take-over. There are many implications of external growth. One of the main implications is the ignorance of the different cultures supported by the two different firms. It involves a lot of time for a firm to talk out differences which is generally unsupported by senior managers having little time. This reflects on poor leadership and unclear objectives for the business as a whole. A good example of this would be the Bell Atlantic Merger with Tele-Communications
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1. Briefly discuss the key reasons for mergers & acquisitions including basic economic reasons and elaborate the reasons & the expectations of acquiring The Navigator by the main group‚ Reasons for Mergers and Acquisitions Why do mergers take place? It is believed that mergers and acquisitions are strategic decisions leading to the maximization of a company’s growth by enhancing its production and marketing operations. They have become popular in the recent times because of the enhanced competition
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FINANCE 2 ASSINGMENT 2011-2012 Nikesh Hindocha (10044607) Part A. Introduction As part of my assignment‚ I have been asked to discuss the following statement “Mergers and acquisitions can be value destroyers or value creators”. A merger can be defined as when two equal businesses in terms of profit margin and status‚ combine in order to become one legal entity. Initially‚ the fundamental reason for this merge is to produce a company that is worth more than the sum of its parts
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Determinants of Growth through Mergers and Acquisitions: An Empirical Analysis by Mathieu Luypaert European University College Brussels (EHSAL) Department of Accountancy‚ Finance and Insurance Katholieke Universiteit Leuven Nancy Huyghebaert∗ Department of Accountancy‚ Finance and Insurance Katholieke Universiteit Leuven Abstract This paper empirically investigates the determinants of external growth through mergers and acquisitions (M&As) in a typical Continental European country‚ Belgium
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