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Mergers and Acquisitions (AECOM) - Essay Example

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In addition, the data was used to examine the effects of the acquisition to the company and the competitors at large. Similarly,…
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Mergers and Acquisitions (AECOM)
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"Mergers and Acquisitions (AECOM)"

Download file to see previous pages The acquisition between the two firms created a lot of opportunities for the competitors in the market to gain stability and thus pose even stronger competition in the market. Besides, the acquisition led to an increase in the shares [prices of the company as opposed to the reduction in its value as it was anticipated. Moreover, the acquisition was as a result of ACM struggling to pursue its selfish interest in the construction industry to ensure that it controls the whole market. It is evident that the primary aim of the acquisition was to eliminate other competitors from the market in order to create a free market for ACM Construction Company to dominate the market. This however did not succeed due to the poor strategies involved in the acquisition. To begin with, the Income statement of the company before the acquisition is better than after the acquisition. The company used to make a lot of profits in the past as observed by Depamphilis (2011).
Since the acquisition between the two companies took place, Jacobs Construction Company has remained steady and continued to enjoy more customer base than before. There has been a significant increase in the number of share of JCE traded with a stable price of $ 23.8 and an average of 240 shares being traded daily. The income statement also signifies a decrease in diluted average weighted share from 132.18 to 126.47 by the r March 2015. This is a good indicator that the company had gained economies of scale and thus financial growth due to the competitiveness created by the acquisition of the two firms according to Bruner, (2004).
The operational synergy for JCE converged and moved together in the same direction after the acquisition of AECOM. This also signifies an improvement in functionality and management of JCE as compared to the merged firm. Moreover, it means increased competition among the firms in the industry as opposed to the primary intention ...Download file to see next pagesRead More
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