Acquisition strategy, Financial Management

The acquisition strategy

The most important strategic consideration is the size of the acquisition. The completion of smaller series should be considered in the beginning than the larger  ones. This will  help the acquirer  to be trained from  each  of  the successive acquisition so that he develops a significant experience. If the acquirer starts with a number of smaller firms, he can work on its acquisition skills remarkably.

The more liable strategic issue faced by the acquirer is the reactions of the competitors to an acquisition. This does not mean that the acquirer should back away from the acquisition because of the fears of competitors. The acquirer  must  be  conscious  of  how  the  transaction  will  guide  to  a reformation of the aggressive environment in this industry. There are some cases where the buyer will intentionally back away from an acquisition, thereby leaving the competitor to acquire.

The value of merger and acquisition transactions lies in the execution. It requires real experience, comprehensible strategic objectives, technical M and A expertise and capable people who act as a strong base for M and A program. Successful strategic acquirers use process and discipline to avoid an M and A breakdown that will certainly impair and devastate shareholder, customer and employee value.

The  approach  of  M and  A  focuses  on  supporting  clients  in  developing efficient structure and discipline which include:

  • Providing a framework for the target screening, transaction execution and combination phases.
  • Communicating a compelling strategy to the employees, else they will resist the change process required for effective combination.
  • Considering the people, process and technology into the target screening phase.
  • Using a well-defined structure with a unique combination.
Posted Date: 9/28/2012 3:07:46 AM | Location : United States







Related Discussions:- Acquisition strategy, Assignment Help, Ask Question on Acquisition strategy, Get Answer, Expert's Help, Acquisition strategy Discussions

Write discussion on Acquisition strategy
Your posts are moderated
Related Questions
Use of Beta to Partition Risk The total risk or variability in earnings can be attributed to two classes of factors: Marketwide factors which create variability in all

Call-Put Parity P + S = C + E * [1/(1+i)] ^n     where:      P = the market price of the put    S = the market price of the stock    C = the market price of the call

My company paid an extremely high price for the acquisition of another company; the price was recommended by the valuation of an investment bank. We now have financial crisis. Is t

The price charged when one segment of an organization provides goods or services to another segment of the organization.

How do I do an introductory writing on this topic tto help. Include all salient issues?

Define the P/E valuation method. Under what circumstances should a stock be valued using this method? The P/E ratio specifies how much investors are willing to pay for each dol

A debt obligation that is issued and traded both in the US bond market and the Eurobond market is referred to as global bond. For an entity to issue global bonds,

Accounting Standards The paradigm shift in the economic environment during last few years has led to increasing attention being devoted to accounting standards as a means towa

Financial statement analysis report: 1. Perform a comparative analysis (horizontal analysis). Analyze two items on the balance sheet and two items on the income statement for

Fund Managers or the Asset Management Company (amc) The role of fund managers is highly significant in the mutual fund operations. So far, this role is being played by the Mutu