How should a company plan merger acquisition

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Reference no: EM131891387

What is your opinion regarding these two responses below when they answer this question. Min 200 words required

What do you think are the criteria a firm should use to evaluate targets for acquisition and how should a company plan and undertake its merger acquisition strategic initiatives?

RESPONSE: A....I think that it's important for a company/firm to evaluate their financial situation along with the market position, their suppliers, their operational activities and their consumer activities. These are all important factors to weigh on to know how the company you have is doing and what changes could be done in what areas.

Reviewing these aspects will allow for a company to determine if it's worth acquiring the company in question. In the event a company decides to become large they should take into consideration a merger acquisition. When planning on a merger acquisition it can indeed increase the competitiveness of the company's earnings. When acquiring another company this allows for the market to increase in size increase its products and increase in resources.

RESPONSE B; An acquisition is a strategy through which one firm buys a controlling, or 100%, interest in another firm with the intent of making the acquiring firm a subsidiary business within its portfolio (Hitt, Ireland & Hoskisson, 2015).

I think that a company looking to acquire should evaluate every aspect or at least as many aspects of the new company as possible. This will include the current market of the company and the company's current financial situation they are acquiring to ensure that it is a good move.

Also, companies should evaluate the suppliers and consumers of the company they are acquiring. When planning a merger acquisition, the company should ensure that the acquisition will increase the company's earnings. Acquisitions can be a positive step for many companies, but they can often end badly.

REMEMBER...What is your opinion regarding these two responses below when they answer the question. Min 200 words required

Reference no: EM131891387

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