StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Financial Crisis - Assignment Example

Comments (0) Cite this document
Summary
ANALYZING EFFECTS OF MERGER AND ACQUISITIONS ON THE RECENT WORLDWIDE FINANCIAL CRISIS Name Unit name Unit code Tutor School Date Introduction The world experienced global financial crisis in the year 2007 and 2008. This marked the period when its effects were felt all over the world…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.8% of users find it useful
Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Financial Crisis
Read Text Preview

Extract of sample "Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Financial Crisis"

Download file to see previous pages The increased Mergers and Acquisition activities can be attributed to globalization, funding at low cost, and the financial turmoil, which is being experienced across the globe (Luc 2010). The three factors have led to increased demand for creation and formation of large business entities in order to compete effectively while seeking growth as a way to increase profits. According to Senese (2009), mergers and Acquisitions have also increased due to the fact that governments have introduced various reform programs in order to revive the economic sector. These programs have led to increased capital flows as a result. Market liberalization is also in the increase in the developing countries, which has further led to demand for mergers and acquisitions. Increased growth for mergers can also be attributed to the increased global investment in seeking better rates of return, and a means to diversify risk. Many businesses prefer venturing overseas. Nowadays, mergers and acquisitions have proved to be common events within the economy. This paper analyzes the effect of mergers and acquisitions on the recent worldwide financial crisis. The effects of mergers and acquisition during the financial crisis will also be analysed in the Banking industry. Discussion Many strategic investors use the terms ‘mergers’ and ‘acquisitions’ interchangeably while making investment decisions. It is, however, important to know the difference between the two terms. Mergers come as a result of two equal entities coming together to form one single business. On the other hand, acquisition involves a smaller company becoming part of a bigger, existing company, which is the acquiring firm. The recent worldwide financial crisis has subjected the financial markets to uncertain environments that are volatile, too. The markets are currently in a vicious cycle of investor redemptions and asset deleveraging. Prices have also declined significantly. Credit spreads have also gone to undesirable levels with indices of equity dropping by 25% in the year 2008. Global demand has also been marked to decline; hence depressing prices of commodities (Mankiw 2009). All these market conditions, among them decreased oil prices, have led to the global downturn. Mergers and acquisition ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Assignment”, n.d.)
Retrieved de https://studentshare.org/business/1448367-analyse-the-effect-of-the-merger-and-acquisitions
(Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Assignment)
https://studentshare.org/business/1448367-analyse-the-effect-of-the-merger-and-acquisitions.
“Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Assignment”, n.d. https://studentshare.org/business/1448367-analyse-the-effect-of-the-merger-and-acquisitions.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Financial Crisis

Accounting & Financial Management

AWB’s operations can be categorized into areas ranging from ‘pool management services’ to ‘harvest financing’, and ‘International commodity management’. Only a company with such a big range of activities and financial outlays can become the benchmark for an equally big company like ‘Woolworth Limited’.

The performance of an entity can be better analyzed through its profitability analyses. The profitability ratios like Gross Profit ratio, Net Profit Margins, Return on assets (ROA), and Return on Equity (ROE). The calculations of such ratios are shown in the attached annexure. The Gross Profit ratio measures the percentage of each pound or dollar of sales remaining aft...
10 Pages (2500 words) Assignment

Effects of Human Resource Systems on Manufacturing Performance and Turnover

Most of these developments, not surprisingly, have come from communities of scholars focusing on their own particular countries or regions, be it the US (for example, Arthur, 1994; Delery and Doty, 1996; Huselid et al., 1997), the UK (for example, Brewster, 1999; Guest et al., 2003), elsewhere in Europe (for example, D’Arcimoles, 1997; Lahteenmaki et al., 1998; Roderiguez and Ventura, 2003). The difference in perspective on the value of people in organizations and the validity of HRM, particularly in non-Western Countries may be best understood in terms of the concept of locus of human value (Jackson et al., 2003). Jackson et al. (2003) came up with a conceptual map of international organization and human resource management...
12 Pages (3000 words) Essay

Financial Management Analysis of Rio Tinto Plc

Taking into consideration that Harmony is the sixth-largest in the world in the gold mining industry, the choice of Harmony God Mining Co. as a benchmark company is the most suitable and justifiable. Moreover, Harmony has also some investment stake in Rio Tinto, and this situation makes the company more suitable for the choice. At places, the benchmark company’s performances have been better than Rio Tinto, and thus Harmony has a competitive edge as well over Rio Tinto.

Profitability ratios like Operating Margin Ratio, Net Margin Ratio, Return on Assets (ROA), and Return on Equity (ROE) are the performance analyzer of any company. Profit Margin ratios show the relationship between profit and sales. Since profit ca...
8 Pages (2000 words) Case Study

Effects of Menopause on Women's Life

It is typically accompanied by some distressing physical and psychological symptoms in women that also impact middle adulthood. There is variation in the age at which menopause occurs; in the USA the average age at menopause is 51 years, but the usual range is 45 to 56 years. For unknown reasons ovaries gradually begin to change on hormone production during a womens mid-30s. In the womens the late 40s, the process speeds up and hormones fluctuate or change more causing irregular periods.

Some womens periods stop suddenly; others experience a perimenopause, a phase of irregular menstruation, and symptoms such as memory disturbance, bloating and feeling tired, that may be troublesome for 5 to 10 years. (Brown, 2002)
...
6 Pages (1500 words) Case Study

What Are the Effects of Industrial Pollution to Nature in Turkey

It is observed that electroplating and chemical industries are responsible for the generation of a considerable portion of emissions that contain heavy metals, and may affect adversely on human lives and environment. On the other hand, sugar, pharmaceuticals, and textile industries are responsible for the generation of organic pollutants in the atmosphere. Refineries, fertilizers, stone mines, and thermal power units are mainly the causing sectors of contributing a substantial amount of air pollution in the Turkish atmosphere. In specific, sulfur, nitrogen, and hydrogen sulfide are some of the main pollutants that are generated from the burning of fuels in the abovementioned industries in Turkey. Though vehicular sources also cont...
7 Pages (1750 words) Case Study

How Does the US Media Effects Evolve in Singapores Current Media

Lewis and Slade (2000, p. 223) in their critical evaluation of the effects of media communication on the audience argue that media effect is achieved incongruent with social context. Their study recounts the experiment on the influence of television on identity in Singapore indicates that US social values and Singaporean values greatly differ from each other. The sharp differences in program content have a negative influence on the audience because Chinese raised Singaporeans value marriage, social values, and collectivism whereas US social culture involves career, family and the struggle to balance the two. Therefore the question of US media's influence to destabilize Singaporean national identity is limited. This view is emphasi...
6 Pages (1500 words) Assignment

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages (2500 words) Research Paper

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages (5000 words) Literature review

Effects of the United States of America Troops in South Korea

Despite the few negative incidences of crime committed by the United States of America’s security troops that were deployed in the country on a peacekeeping mission.
Since the war in Korea began in the early nineteen fifties, the United States has stationed tens of thousands of soldiers, mostly the United States’ army personnel, in South Korea. Through the assistance of the South Korean troops and other neighboring governments, the American troops have been able to guard and offer maximum security to South Korean people. In line with the argument of James (2003), ‘most of the military bases in South Korea are relatively isolated’ thus the need for much attention from the troops so as to ensure maximum...
10 Pages (2500 words) Assignment

Capital Asset Pricing Model and Recent Developments

It is the most essential aspect of any venture. The important considerations that finance has within it, is that of profit and loss. The business as a whole or a person as an individual always strives to earn a profit. To earn a profit, one has to undertake uncertainties that are known as risks. Therefore, profit is also known as the reward for incurring risks.
In the present world of today, the capital market has come up as a viable investment opportunity for individuals all across the globe. People invest their hard money only with the expectation to earn profit or return. The stocks of various companies that are traded in the capital market are also known as capital assets. Prior to investing in any of the stock or capital...
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Analyzing Effects of Merger and Acquisitions on the Recent Worldwide Financial Crisis for FREE!

Contact Us