Reasons for mergers and acquisitons, Other Management

There are numerous reasons for a company to peruse M and A. Some of them are listed below:

  • The M and A are undertaken to achieve specific financial, business and strategic objectives to strengthen current operations and spread into new markets. These transactions can substantially change a company's income statement, balance sheet and public profile.
  • Executing on a set of corporate objectives is the most important constituent of merger and acquisition whereas creating value with the transaction is considered as additional gain. The key factor becomes the pre and post merger integration.

Therefore,  while  individual  considers  mergers  and  acquisition  as  an approach for growth, it is sensible to assess the potential transaction in the perspective of the internal option. There are, however, a few typical M and A drawbacks:

  • Many mergers failed due to an unclear or a wrong M and A strategy, leading to over payment and time extension.
  • Due diligence is limited only to commercial financial data, which leads to un-assumed problems.
  • Integration/separation environment are very uncertain after the deal is closed.
Posted Date: 9/28/2012 3:04:03 AM | Location : United States







Related Discussions:- Reasons for mergers and acquisitons, Assignment Help, Ask Question on Reasons for mergers and acquisitons, Get Answer, Expert's Help, Reasons for mergers and acquisitons Discussions

Write discussion on Reasons for mergers and acquisitons
Your posts are moderated
Related Questions
(a) Define the term Public Relations as per the British Institute of PR and explain the relevance and interdependence of i. PR and marketing and ii. PR and advertising.

Construct  Validity: In  cqnstruct validity, the investigator  is  concerned with the questions  the  concept under investigation being adequately measured? Is  there  a valid

Requirements for direct contracting  Let us now look at the requirements for direct contracting:    The requirement of direct contracting should be such that it can be ju

What is promotional Mix? Mention and explain the elements of promotional mix?

Question 1 How is a cable television system organized? Explain Question 2 Discuss the ethical issues in media management Question 3 What are the major design steps of a

Question 1: (a) Show what is meant by the managerial environment? Illustrate your answer with specific examples using both internal and external environmental influences within

Problem 1 Strong employee relations equals solid organizations. Companies that interact effectively with workers financially outperform those that don't. Identify and descri

ISO 9000 Quality System Standards ISO  is  the  universal  hallmark  of  quality  which  consists  of  a  family  of standards for quality management systems such as ISO 9000.

What are the characteristics of centralised purchasing?

QUESTION When a company is forming long-term outsourcing relationship with another company, the foundation of the success of the venture is a good contract management (a) Wh