Premium+

Culture, Change/Integration in Mergers and Acquisitions - Research Paper Example

Comments (0) Cite this document
Summary
This paper "Culture, Change/Integration in Mergers and Acquisitions" will look into mergers and acquisitions using a case study of Premier Foods and RHM as the basis for investigating the components of an acquisition. In this instance, a different approach is engaged in. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful

Extract of sample "Culture, Change/Integration in Mergers and Acquisitions"

Download file to see previous pages The subject of culture and integration in merger and acquisition companies is usually thought of as a secondary task in the process. In fact, its importance and significance are just as significant as the analysis and synergies that are a part of the profit and market growth considerations that put the prospective company on the M&A radar (Gaughan, 1999, P.). The size of multinational corporations (MNC) was brought forth in a report titled ‘Growth in Multinational Corporations and the Impact on Culture’ that examined a number of theories on MNCs that included their impact globally as a result of there growth, along with different facets as represented by culture. In general, when one thinks of merger and acquisition activity the general definitions skew the thinking in terms of revenues, profits, market expansion, investment, and shareholder value. Research conducted on the definition of M&As supported this general worldview as evidenced by a number of sources. The Financial Times (2009) defines the term “… the acquisition may or may not lead to a merger, from an investment banking point of view the two concepts require the same expertise. M&A activity can result in consolidation or rationalization in a particular sector or industry.” Another definition states that an M&A (FreeDictionary, 2010): “…is a combination of two companies where one corporation is completely absorbed by another corporation. The less important company loses its identity and becomes part of the more important corporation, which retains its identity. A merger extinguishes the merged corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the merged corporation”. The two preceding definitions definitively support the contention raised in terms of the view of merger and acquisition activity that uses a third definition to indicate the conceptual focus of areas. This added definition states that M&As are an “Area of banking or financing that deals with funding of acquisitions, mergers, and takeovers. It is usually an area of specialty of corporate lawyers, merchant banks, and stock brokerage firms” (BusinessDictionary.com, 2010). In adding to the foregoing investigation of M&As, Drew (2007) explained that mergers and acquisitions increase shareholder value. The point of this seemingly drawn-out emphasis is that the financial, growth, expanded market, and revenue side of the merger and acquisition ledger predominates when one looks at definitions. Straub (2007) stated that the benefits of mergers and acquisitions include the creation of economies of scale as a result of the increased size resulting from the activity, along with the enhancement of market power. In looking into the performance of merger and acquisition activity, the results these combinations have achieved does not bespeak a stellar track record. KPMG conducted a study on this very point and found “83% of all mergers and acquisitions (M&A’s) failed to produce any benefit for the shareholders and over half actually destroyed value” (Giletson et al, 2001). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Culture, Change/Integration in Mergers and Acquisitions Research Paper, n.d.)
Culture, Change/Integration in Mergers and Acquisitions Research Paper. Retrieved from https://studentshare.org/business/2022641-mergers-and-acquisitions
(Culture, Change/Integration in Mergers and Acquisitions Research Paper)
Culture, Change/Integration in Mergers and Acquisitions Research Paper. https://studentshare.org/business/2022641-mergers-and-acquisitions.
“Culture, Change/Integration in Mergers and Acquisitions Research Paper”, n.d. https://studentshare.org/business/2022641-mergers-and-acquisitions.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Culture, Change/Integration in Mergers and Acquisitions

Mergers & Acquisitions

...?Mergers & Acquisitions Table of Contents Mergers & Acquisitions Table of Contents 2 Introduction 3 Types of Mergers and Acquisition 3 Mergers and Acquisitions in United Kingdom 5 Issues in Cross Border Mergers and Acquisitions: In the light of theory and evidence 6 Human Resources & Cultural Issues 7 Valuation Issues in Mergers and Acquisitions 8 Accounting Issues in Mergers and Acquisitions 11 Conclusion 12 Reference 14 Bibliography 18 Introduction “Mergers and...
10 Pages(2500 words)Essay

Mergers and acquisitions

...of affairs can be advantageous to the multinational corporations as they will be able to attain their goal of making profits but it will pose challenges of supervision of these mergers and acquisitions by the host government (Zhao 2008). From this assertion, it can be noted that regulation is somehow important so as to prevent monopolies whereby the dominant multinational corporations can end up reaping huge profits at the expense of the welfare of the general citizens of the host country. Thus, regulation can be defined as “action formed and carried out by government, and it is the normal rule or special action that directly interferes with market allocation mechanism and indirectly...
10 Pages(2500 words)Coursework

Mergers and Acquisitions: Hostile Mergers

... restructuring activities: an integrated approach to process, tools, cases, and solutions. Elsevier. UK. Robert, B. 2011. Applied merger and acquisition workbook. John Willey and sons. US. Sherman, A. J. and Hart, M. A. 2006. Mergers and Acquisitions From A to Z. AMACOM Div American Mgmt Assn. Ullrich, S. and Piero, M. 2004. Managing Complex Mergers: Real World Lessons in Implementing Successful Cross-cultural Mergers and Acquisitions. Financial Times/Prentice Hall. US. Zabihollah, R. 2011. Financial Services Firms: Governance, Regulations, Valuations, Mergers, and Acquisitions. John Wiley and sons. US.... ? Mergers and Acquisitions: Hostile Mergers (Case study ArcelorMittal) Table of...
11 Pages(2750 words)Assignment

Mergers & Acquisitions

...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 continue to exist. A...
8 Pages(2000 words)Essay

Mergers & Acquisitions

...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

Mergers & Acquisitions

...MERGER & ACQUISITION Table of Contents Introduction 3 Saudi Aramco 6 Petromin 9 Strategic Rationale 9 Rivalry among the established competitors 12 Risk of new entrants of potential customers 12 Suppliers’ bargaining power 13 Threats of substitute products 13 Buyers bargaining power 13 Source of Financing 15 Hostile Acquisition of Samarec 17 Impact of Acquisition and Integration Issues 18 Conclusion 19 References 20 Bibliography 23 Introduction A merger means a combination of two similar sized organisations to form a new entity. An acquisition is performed when a larger company purchases another company (comparatively...
15 Pages(3750 words)Essay

Acquisitions and Mergers

...to sign an acquisition deal (Michael, 2001). Disadvantages of M&A The disadvantages of mergers and acquisitions are: Clash of culture between the two companies Market conditions Acquisition costs and changes In most cases mergers and acquisitions fail to function the way they were expected to be due to the diversified culture that can exist in the two companies which in turn decreases the effectiveness of the incorporation. There might be a need to make workers superfluous which can have negative effects on the motivation of employees. There are chances that there might be...
12 Pages(3000 words)Essay

Mergers and Acquisitions: Hostile Mergers

...: an integrated approach to process, tools, cases, and solutions. Elsevier. UK. Robert, B. 2011. Applied merger and acquisition workbook. John Willey and sons. US. Sherman, A. J. and Hart, M. A. 2006. Mergers and Acquisitions From A to Z. AMACOM Div American Mgmt Assn. Ullrich, S. and Piero, M. 2004. Managing Complex Mergers: Real World Lessons in Implementing Successful Cross-cultural Mergers and Acquisitions. Financial Times/Prentice Hall. US. Zabihollah, R. 2011. Financial Services Firms: Governance, Regulations, Valuations, Mergers, and Acquisitions. John Wiley and sons. US.... Table of Contents Introduction 2 Case study- ArcelorMittal 2 Mittal Steel Company and Arcelor 2 1.Strategy 3 Why the changes...
11 Pages(2500 words)Essay

Mergers& Acquisitions

.... The merge also raised the possibility of future mergers that will reduce the number of airlines and hence customers will have reduced choices (Daily Mail Reporter, 2013). The two companies faced an issue on culture merge, and it delayed the merge for a few months. The two companies left out other cultures, and the company developed a new business culture so that the two companies would fit in (Reed, 2014). The companies also disagreed on the management issue since each company wanted to be fully represented in the new company. This situation led to choosing of a duo management system which has a limitation of slow decision making. The in their first three months of...
4 Pages(1000 words)Essay

Integration and Cultural Change Processes in Mergers and Acquisitions

...Lefrancois, F Tonna, R & Shapiro, BT 2007, Mergers 101 (part one): training managers for communications and leadership challenges, Industrial & Commercial Training, vol. 39, no. 3, pp. 128-136 Besite, 2008, Italy, retrieved online 5 September 2009 from http://www.cyborlink.com/besite/italy.htm Besite, 2008, United Kingdom, retrieved online 5 September 2009 from http://www.cyborlink.com/besite/united_kingdom.htm Bijlsma-Frankema, K 2001, On managing cultural integration and cultural change processes in Mergers and acquisitions, Journal of European Industrial Training, vol. 25, no. (2/3/4), pp. 192-207 Bligh, MC 2006,...
10 Pages(2500 words)Dissertation
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 Research Paper on topic Culture, Change/Integration in Mergers and Acquisitions for FREE!

Contact Us