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..
Solve z transform problem online y(n)=cos*x(n) solve, sole by z transform
sole by z transform
Electronic apu fuel control system in aircraft , Electronic APU fuel contro...
Electronic APU fuel control System in Aircraft : Electronic fuel control emulates the mechanical system, however it provides control in a slightly different way. The electronic
Fire safety management for clubs, Fire safety management for clubs: In...
Fire safety management for clubs: In clubs and other places where there is music being played, or other entertainment, it is important that the music (or other entertainment)
Basic electronics, A car battery is of 12 v. eight dry cells of 1.5 v each ...
A car battery is of 12 v. eight dry cells of 1.5 v each connected in series can give 12 v. but such cells are not used in starting a car. why?
Financial strategy and operations, Q. A. Microfinance case How would you va...
Q. A. Microfinance case How would you value the price of a Microfinance Institution? Using data available on the net, explain what would you consider the value of SKS (India) or Co
Signal processing, why shift variant system causes artifacts
why shift variant system causes artifacts
representing vectors in different axes, Representing vectors in different ...
Representing vectors in different axes All positions, velocities, momentums and accelerations are really relative positions, relative velocities, relative momentums and relativ
Construction, notes on non tilting concrete drum mixers
notes on non tilting concrete drum mixers
Earth Summit, please tell me in detail that what is earth summit??????????
please tell me in detail that what is earth summit??????????
Flight control - characteristic equation, characteristic equation The c...
characteristic equation The characteristic equation (C.E.) corresponding to the linear state space equations comprising the state equation? x = Ax + Bu and output equatio
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.