Analysis of proposal by the companies, HR Management

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When a proposal for amalgation or merger comes up then managements of concerned companies look into the pros and cons of the scheme. The likely benefits such as eonomic of scale, operational economics, improvement in the efficiency, reduction in costs, are clearly evaluated. The likely reactions of share holders, creditors, and others are also assessed. The taxation implications are also studied. After going through the whole analysis work, it is seen whether the scheme will be beneficial or not. It is pursued further only if it will benefit the interested parties otherwise the scheme is shelved.


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