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
Determine the term- Investment decision Investment decision is broadly concerned with asset-mix or composition of the assets of a firm. Concern of the financing decision is wit

I am looking for assignment help on the topic Structure and Organization of Treasury. It would be great if anyone help me.

Wing Yin Tsui, CEO of Lian Huang & Wong Bin Dean Hwang Manufacturing Limited is considering a four year project. The project requires an initial investment of $10,000,000 to buy ne

Question 1: i) What is meant by Cost and Benefit Analysis? Illustrate your answer with the use of empirical and hypothetical examples. ii) What are the benefits of conductin

Deseasonalizing a Time Series The Ratio to Average Method allows us to identify the component of the seasonal variation in time series data and the indices themselves help us

After estimating the cash flows, the next step is to determine the appropriate interest rate that should be used to discount the cash flows. The minimum return re

Interest rates are the key determinants of business cycles in emerging market countries. In the past, several economies had experienced frequent and great changes

What is the meaning of Deviations Deviations must be recorded and investigated regardless of the amount involved and then assess whether deviations are isolated departures or i

Q. Evaluate Cost of Preference Share Capital? Cost of Preference Share Capital: - A fixed rate of dividend is to be paid on preference shares. However unlike debt the dividend

Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory state that dividends received now are better than a promise of future dividends.  U