of the strategic development is an external method‚ mentioned as an inorganic growth in the literature‚ too. These words “inorganic growth” indicate that the growth is not natural‚ that means‚ it is not developed inside the company but arises from mergers or takeovers. (12 Manage‚ 2009) It is fast way how to develop the company. (Bruner‚ 2004) There are the advantages and disadvantages for each of the method which will be described further in order to estimate the issues and challenges organisations
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Naturally‚ this requires companies to grow and expand in| |businesses that they understand well. Thus‚ leading corporate houses have undertaken a massive restructuring exercise to create a formidable| |presence in their core areas of interest. Mergers and acquisitions (M&As) is one of the most effective methods of corporate restructuring | |and has‚ therefore‚ become an integral part of the long-term business strategy of corporate. | |The M&A activity
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Principles and applications (10th ed.) Upper Saddle River‚ NJ: Pearson/Prentice Hall. McBride Financial Services. (2005) Retrieved from http://www.exampus.phoenix.edu?secure/aapd/cist/vop//business?McBride/Internet/locations.html Mergers. (n.d.) Disadvantages of Mergers. Retrieved from‚ http://www.associatedcontent.com/article/1189676/the_advantages_and_disadvantages_o f.html?cat=3 [pic]
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securities through corporate restructuring Types of Corporate restructuring : 1. Mergers or amalgamation The words mergers and amalgamation are always interchangeable but there is slight difference in mergers and amalgamation. Merger is fusion of two or more entities and it is a process in which the identity of one or more entities is lost (as is often seen when political parties merge). In the case of a merger‚ the assets and liabilities of a company get vested into the assets and liabilities
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necessitated the need for different organization to engage in corporate Consolidation (mergers and acquisition). The concept of recapitalization refers to the current trend of compelling all commercial banks to raise their capital base from 2billion to 25billion Naira by the Central Bank of Nigeria on or before 31st December 2005. This has sent some of these banks on the move to consider Merger and Acquisition as a survival strategy. WHERE WE WERE BEFORE CONSOLIDATION 89 banks with 3‚382 branches
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IntroductionRiordan Manufacturing is a global plastics injection molding company‚ employing 550 people with estimated annual earnings of $46 million. Dr. Riordan‚ a professor of chemistry‚ who had obtained several patents relative to processing polymers into high tensile strength plastic substrates‚ was also the founder of Riordan Manufacturing. Sensing the commercial applications for his patents‚ Dr. Riordan started Riordan Plastics‚ Inc. in 1991. Owned by Riordan Industries‚ which is a fortune
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Introduction In 2003‚ the announcement was made of a merger between FedEx Corporation and Kinko’s‚ Inc. There are multiple reasons why corporate decision makers consider mergers‚ “the potential efficiency benefits from mergers and acquisitions include both operating and managerial efficiencies‚” (Pautlar‚ 2003‚ p. 122). “These mergers and acquisitions are aimed at increasing growth‚ enhancing existing capabilities and developing new markets” and as a strategic consideration they can “generate cost
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businesses‚ consumers‚ investors‚ and competition; to conserve the environment; to regulate working conditions; and to protect business property. Both state and federal laws govern mergers and acquisitions. State laws set the procedures for the approval of mergers and establish judicial oversight for the terms of mergers to ensure shareholders of the targeted company receive
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Meaning Of Amalgamation When two or more companies carrying on similar business go into liquidation and a new company is formed to take over their business‚ it is called amalgamation. In other words‚ amalgamation refers to the formation of a new company by taking over the business of two or more existing companies doing similar type of business. In amalgamation‚ two or more companies are liquidated and a new company is formed to take over the business of liquidating companies. The companies which
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to buy Conrail? Why can CSX justify paying a premium to acquire Conrail? The Stagger’s Rail Act of 1980 has created a deregulated environment in which acquisitions are used to improve the competitive positioning of existing companies within the railroad industry. CSX is interested in Conrail for a couple of reasons. Primarily‚ CSX-Conrail merger would result in more than $8.5 billion in revenues and nearly 70% of the Eastern market. The combined entity would be able to control the railroads between
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