Mergers and Acquisitions - Dissertation Example

I am grateful for the many people who aided me in the completion of this project, without whom I would have had great difficulty completing my research on mergers and acquisitions. ABSTRACTWith the advent of companies like Microsoft, Google, and Yahoo! merging, all kinds of discussions have ensued. What constitutes a merger What constitutes an acquisition And, admittedly, what is the difference The ensuing discussion raises questions as to the validity of mergers and acquisitions in a day and age when companies are struggling to meet their overhead costs.

Many times, mergers and acquisitions are the solution-not the problem-to the dilemma which ails many organizations: "How do we stay in business" A comprehensive view of mergers and acquisitions is taken into account, as the pros and cons of equity financing, and the desirability of mergers and acquisitions ("M&A's") are evaluated. As an example, hundreds of M&A's on the London Stock Exchange are reviewed for a period of the past 10 years. Conclusions are summarily drawn from the data provided.I. Introduction A.

Statement of the ProblemWhat follows, regarding mergers and acquisitions, is all too common. Barmash (2003) stated, "The company didn't have a new president so it bought a company that didThey couldn't compete with the company, so they bought itThe company really didn't want to sell; it just wanted to see what kind of price it could draw" Unfortunately, for some companies, this is what happens. For whatever reason, companies sell out and new companies come to take their place. It is increasingly the way of the world.

This is now the way business works. It is common for several industries to consolidate due to. Mergers and acquisitions can be the bright spot on lawyers and others’ resumes, based on how important the nature of the prospective deal is. And, M&A’s (as they are wont to be called) are highly valued in society and can change a company’s outlook on the future. Anon (2009) comments, “Not surprisingly, these actions often make the news. Deals can be worth hundreds of millions, or even billions, of dollars.

They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an M&A can represent the highlight of a whole career.” Many people in the information security and technology sectors are looking to the relative absence or presence of mergers as a way of gauging how successful their own company is. This is a key factor to remember when evaluating a company. As Tenopir et. al. (2007) denote, “There are a lot of worries from database providers but they are working on ways to integrate social networks, provide increased depth within their specialties, and make their products stand out in order to succeed on the information farms of the future.

” Mergers and acquisitions are common. A majority of the populace should be concerned with M&A’s because they significantly affect the quality of life of millions. Anon (2009) denotes, “…it is no wonder we hear about so many of these transactions; they happen all the time. Next time you flip open the newspaper’s business section, odds are good that at least one headline will announce some kind of M&A transaction.”