CHECK THESE SAMPLES OF The effects of mergers and acquisitions on small business lending
...the past decade, the globalisation of the businesses across the globe has initiated a search for the competitive advantage, worldwide. With the increased competition to fetch the customer satisfaction in a cost effective way, the companies have responded to the pressure of attaining scale in a quickly consolidating global economy. In addition to some other trends, such as privatisation, deregulation and corporate restructuring, globalisation has encouraged an unparalleled surge in the cross border merger and the acquisition activities (Finkelstein, n.d.). Cross border consolidation activities are a significant component of global business operations...
10 Pages(2500 words)Essay
...country has different regulatory laws pertaining to the operations of the mergers and acquisitions and in most cases, the aims of these laws are the same. However, as going to be discussed below, it can be noted that some governments have stringent laws that negatively impact on the mergers and acquisitions while others have favourable conditions. In the above mentioned article, Firms (2011), states that, “China is seeking to establish a panel that will check whether merger and acquisition deals struck by foreign firms in the country endanger "national security" as stated by China's State Council.” The story goes on to mention that under...
10 Pages(2500 words)Coursework
..., the organization would be able to increase its earnings per share through a merger with American Airlines. This could help stabilize the company and would make it the second largest in the industry. It seems that international growth, fleet expansion, and/or merging with legacy member is key to the companies ability to survive the consolidating industry in a contracting economy. Hence the key to success for US Airways and American Airlines will be found in their ability to generate enough revenue to either expand their fleet or to attempt strategic acquisitions of smaller firms operating in strong local markets. IX. Summary Over the last decade the industry has experienced a great deal of volatility due...
10 Pages(2500 words)Essay
...Mergers & Acquisitions - An Introduction The term 'merger' is often abused, by being loosely applied to refer to any form of business combinations. It has however got a specific connotation. A merger actually refers to a business combination of two or more firms in which only one firm survives and the other firm or firms go out of existence. In a merger, the surviving firm acquires the assets and liabilities of the other firm(s). A relevant example here is the recent merger of HDFC Bank and Times Bank. After the merger, Times Bank will go out of existence and expanded HDFC Bank will...
8 Pages(2000 words)Essay
...Mergers and Acquisitions (a) In the proposed merger between Smith plc and Amanda plc, two options for issue of shares may be explored. The first is avaluation of the shares on the basis of current market price:
Total number of shares in issue = 1,864,000
Total share earnings = {165,000 + 239,000} = 404,000
Individual share earnings = 0.216 or 21.6 p
On this basis, if a price to earnings ratio of 8 is to be maintained, then each individual share price must be set at: (x/0.216 X 8) = 1.73 pounds
For Amanda plc shares, this would result in a lowering of the market price per share by (2.40-1.73) = 0.67 pence, while for Smith plc shareholders, the value of their stock rises by (1.73-1.03) =...
4 Pages(1000 words)Essay
.... But at the same time merging can cause fears of losing jobs also.
In the U.S., as in Europe, most merger challenges are settled by agreements that involve restructuring; relatively few are litigated in court. Merger restructuring to address competitive problems and preserve otherwise legitimate proposals is an accepted part of antitrust but some of the restructuring proposals that we have seen in the United States are more extensive and complicated in recent years than any seen before since the effectiveness of restructuring is such a critical part of merger policy.
The effects of mergers and acquisitions on...
2 Pages(500 words)Essay
...design capacity to 450,000 bpd. The project included a propylene plant.
This refinery was started in mid-1984. A joint venture between Petromin and Mobil emerged and was known as Pemref. Saudi Aramco controlled the stake 50% in 1993 after absorbing Samarec (All Business, 2005).
Saudi Aramco effectively took over Saudi Arabian Marketing & Refining Company (Samarec) by placing the senior staff and scarce resources in the merger.
The council of ministers on 14th of June announced about the merger will take place with some measure that took the oil industry with a surprise. On 16th June, Saudi Aramco declared that Abdel-Aziz al-Hokail, who was the executive vice-president...
15 Pages(3750 words)Essay
...Table of Contents
Introduction 2
Case study- ArcelorMittal 2
Mittal Steel Company and Arcelor 2
1.Strategy 3
Why the changes implemented 3
2.Regulatory 5
3.Valuation 6
4.Financing 7
5.Defence tactics 7
6. Implementation 9
7. Risk 10
Conclusion 10
References 11
Introduction
Merger can be defined as a consolidation of two same size companies, which creates a new company. An acquisition is, when a company buy another company and a new company will form (Sherman and Hart, 2006, p.1). There are different types of merger and acquisition can find in the business world, among which the takeover of Arcelor by Mittal steel Company is considered as hostile...
11 Pages(2750 words)Essay
...Topic: Critical Analysis Bibliography Berger, A., Saunders, A., Scalise, J., & Udell, G. (1998). The effects of bank mergers and acquisitions on small business lending. Journal Of Financial Economics, 50(2), 187--229.
2. Introduction
Liberalization in relation to geographic restrictions of banking institutions in the US from the 1970’s produced a quick amalgamation of the banking industry which lead to numerous mergers that consolidated two or more banks under one charter and acquisitions where the banks maintained their charters but were under the ownership of different holding companies. The connection...
4 Pages(1000 words)Research Paper
...of the company was high. The move also was an advantage to the previous customers of the two companies since the company reduced its travel costs. The move was intended to attract new customers as well as create loyalty in the existing customers. Operation and cost management efficiency was heightened since the new company developed new and more strategic strategies (Reed, 2014). In a recent opinion poll, the company was rated as the best airline in terms of quality of service, comfort and cost of travel.
The merger also brought about negative effects to the involved parties. Some customers were with the move, and they were of the notion that the airlines would lose their originality. The move also...
4 Pages(1000 words)Essay
