Customer Service Chat
Get quote & make Payment
Corporate Strategy, Finance, Other Engineering
In our earlier discussion, we made distinctions between merger and acquisition or takeover. However, they generally involve similar analyses and evaluations. A merger or acquisition might be considered successful if it increases the shareholder value. Though it is quite difficult to say how the firm would have performed without merger or acquisition, but the post-merger poor performance would be attributed as a failure of merger or acquisition. What are the chances that mergers or acquisitions would succeed? Empirical evidence shows that there is more than fifty per cent chance that they would succeed.
There are several reasons responsible for the failure of a merger or acquisition. They include:
1. Excessive premium: - an acquirer may pay high premium of acquiring its target company. The value paid may far exceed the benefits. This happens when acquirer becomes to eager to acquire the target for prestige or increasing the size of its empire.
2. Faulty evaluation: - at times acquirers to not carry out the detailed diligence of the target company. They make a wrong assessment of the benefits from the acquisition and land up paying a higher price.
3. Lack of research: - acquisition requires gathering a lot of data and information and analyzing it. It requires extensive research. A shoddily carried out research about the acquisition cause the destruction of the acquirer’s wealth.
4. Failure to manager post- merger integration: - many times acquirers are unable to integrate the acquired companies in their businesses. They overlook the organizational and cultural issues. They do not have adequate understanding of the culture of the acquired companies which creates problem of integration and synergy.
Posted Date: 2/1/2012 12:09:07 AM | Location : United States
Ask an Expert
Corporate Strategy, Finance, Assignment Help, Ask Question on Corporate Strategy, Finance, Get Answer, Expert's Help, Corporate Strategy, Finance Discussions
Write discussion on Corporate Strategy, Finance
Your posts are moderated
Write your message here..
machine molding, Machine molding is suitable for the faster and uniform qu...
Machine molding is suitable for the faster and uniform quality moulds, needed for mass production of castings. For preparing the moulds, various moulding machines are used. Majorit
Naval architecture and marine engineering, i have a coursework for finite e...
i have a coursework for finite element analysis of marine structure and i need help to solve it
Engine torque, ENGINE TORQUE It is the force of rotating action about t...
ENGINE TORQUE It is the force of rotating action about the crankshaft axis at any given instant of time. It is given by,
The unity gain follower, The unity gain follower: The somewhat lengthy ...
The unity gain follower: The somewhat lengthy term operational amplifier will now be dropped and it will be referred to, as most people do, simply as the op amp. The simplest
Chvorinov''s rule, Q. Why is it desirable to design a casting to have direc...
Q. Why is it desirable to design a casting to have directional solidification sweeping from the extremities of the mould to riser based on Chvorinov's rule? What would be an ideal
Aerodynamics-influence on transition, Influence on transition Reynold...
Influence on transition Reynolds number - relates importance of viscousforces (relative to inertia) Lower Re - molecular diffusion more important; disturbances damped out
Timber, micro structure of exogenous tree
micro structure of exogenous tree
Math problems solutions matlab, Matlab is a 4th technology selection langua...
Matlab is a 4th technology selection language, which is designed by The MathWorks. It provides an exact processing atmosphere. Matlab works a variety of math features like design o
thermoelectric effect, Thermoelectric effect The measurement of temper...
Thermoelectric effect The measurement of temperature using a thermocouple relies on Seebeck effect. The electrons occupy different energy levels in different materials
Class B audio amplifier, could help me to write a project specification of ...
could help me to write a project specification of class B audio amplifier, if I am going to do a project of class B audio amplifier?
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.