Aligning mergers and acquisitions with corporate strategy, Other Management

Assignment Help:

Aligning Mergers and Acquisitions with Corporate Strategy

In the previous section we learnt about the motives for acquisition. In this section, we will learn how to align Mergers and Acquisitions (M and A) with corporate strategy.

A successful M and A execution and integration is achieved only when the M and  A  strategy aligns  with  the  companies corporate strategy. These corporate strategies may be varied including company's growth, becoming more competitive in market, product extension or risk reduction and so on. Acquisition should satisfy the criteria or add valve to the corporate strategy. Hence it should be aligned with the company's strategy.

M and A is a strong strategic tool for a company. Successful M and A includes multiple steps in an elaborate process, which is quite similar to the corporate strategic planning. Acquirer should always consider how to optimise the M and A in the framework of an overall corporate strategy. Let us now review how merger and acquisitions create value in particular:

  • The existing company's structure may be changed due to investment structure.  The  investment  structure  usually  gets  altered  by  various financing  transaction  in  the  event  of  acquisition  with  consequential impact on the asset.
  • While making a horizontal or vertical acquisition, the existing company's image will be modified in the market place. Hence, the communication strategies desired should to be adapted to enhance public perception in a positive way.
  • Also, there will be change in operational performance of shareholders value, which is the most obvious change.

Related Discussions:- Aligning mergers and acquisitions with corporate strategy

Social structures as a management tool, S ocial structures as a management...

S ocial structures as a management tool An understanding of the type of social structure which can take the responsibility of nurturing the learning, developing the competenci

Describe the export promotion capital goods scheme, Question 1 List the le...

Question 1 List the legal provisions of Uniform Customs and Practices for Documentary Credit in relation to Letter of Credit Question 2 Write a note on i) Imports by 100%

Library catalogue : objectives purposes and functions , OBJECTIVES Li...

OBJECTIVES Library catalogue is an important tool in a library and cataloguing is one of the most important activities of a library. In this Unit, you are introduced to a few

Groupthink, Groupthink This is a condition where group pressures for co...

Groupthink This is a condition where group pressures for conformity prevent the group from critically evaluating alternative viewpoints. The classic example of groupthink, the

Government relations, Government Relations This is a sub function of co...

Government Relations This is a sub function of corporate communication more frequently called public affairs. Depending on your organizations, the importance of government re

High standard of ethical behaviour, Problem: ‘Government officials resp...

Problem: ‘Government officials respond to incentives and disincentives. They are unlikely to undertake policies that are generally unpopular or that will lose them powerful sup

Responsibilities of a registered safety and health officer, Every employer ...

Every employer who employs more than 100 persons in his enterprise must, under section 30 of the Occupational Safety and Health Act 2005 appoint a registered Safety and Health Offi

Relationship between front desk and reservations department, Question 1: ...

Question 1: (i) Explain the relationship between the Front Desk and the Reservations Department. (ii) Enumerate the various steps in the reservations process and explai

Disadvantages of the first past the post electoral system, QUESTION 1 O...

QUESTION 1 Outline the constitutional and political history of Mauritius from 1947 to 1959 with reference to (i) the right to vote (ii) the partial transfer of power through

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd