Nobody downloaded yet

Differences in Mergers - Research Paper Example

Comments (0) Cite this document
When a horizontal merger occurs, the participant firms in the merger have similar business activity through making and selling similar products or services. For example, were the two companies of Merck and Schering-Plough to take a decision to merge, it would be a horizontal…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Differences in Mergers
Read TextPreview

Extract of sample
"Differences in Mergers"

Download file to see previous pages The merger between a manufacturing company and one of its distribution channel partners is an example of a possible vertical merger. When IBM acquired Intelliden in 2010 it is an example of another form of vertical merger. The smaller Intelliden in the business activity of automation software technology was vertically merged with the larger IBM, enabling IBM to make use of its automated software competencies, so that it did not have to create these competencies and develop the software available with Intelliden. A conglomerate merger is totally different from a horizontal and vertical merger, as it involves the merger between two companies that operate in different sectors of industrial activity. A clear example of such a merger can be seen from the merger of the financial company Berkshire Hathaway with the railroad and transportation company Burlington Northern Santa Fe (Pride, Hughes & Kapoor, 2010, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Differences in Mergers Research Paper Example | Topics and Well Written Essays - 250 words”, n.d.)
Differences in Mergers Research Paper Example | Topics and Well Written Essays - 250 words. Retrieved from
(Differences in Mergers Research Paper Example | Topics and Well Written Essays - 250 Words)
Differences in Mergers Research Paper Example | Topics and Well Written Essays - 250 Words.
“Differences in Mergers Research Paper Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Mergers & Acquisitions
...of legal and investment banking services can create issue in the acquisition process (Sudi, 2003). Apart from this, there can be significant financial and cultural issues in cross border mergers and acquisition processes. According to a KPMG study, "83% of all mergers and acquisitions (M&As) failed to produce any benefit for the shareholders and over half actually destroyed value" (Gitelson, Bing & Laroche, 2001). This has been done taking the responses of more than 100 senior executives who have been involved with around 700 deals in some two-year. This has revealed that the significant reason of the failure has been the human resource and cultural differences. Issues encountered in the...
10 Pages(2500 words)Essay
Conglomerate Mergers
...A merger is said to take place when two companies become one by combining all the assets and liabilities and take a new The reason for mergers is usually to create value, because the value of combined companies is always higher than that of the individual companies that are combining1. Conglomerate mergers take place when the firms involved in the merger operate in different product markets. These mergers may be product extension mergers - merger involving firms that produce different but related products - or pure conglomerate mergers - mergers between...
8 Pages(2000 words)Essay
...and the communities it serves. Tata Steel aspires to become a 50 Million tonne Steel Company by 2015. Corus was formed on 6th October 1999 through the merger of British Steel and Koninklijke Hoogovens. Corus was the 2nd largest producer of Steel in Europe. The Bidding War... It was little hard for TATA Steel to swallow Corus as CSN, a Brazilian company was also in the race. The bidding war between Tata Steel and Brazilian company CSN was riveting and ended in a rapid-fire auction. Initial reactions to the deal are highly diverse and retail investors are completely puzzled by the market reaction. Managing Finance for the deal TATA Steel had announced the refinancing of its GBP 3,260 million acquisition bridge facility...
5 Pages(1250 words)Case Study
Mergers & Acquisitions exploiting resources with Amanda plc has demonstrated. (b) In respect to the offer that has been made by the independent company, Chen plc, for a price of 1.60 pounds for Smith plc stock, it may be noted that this is less than the value of 1.73 or 1.82 that can be derived for Smith plc stock from a merger with Amanda plc. Moreover, this is an outright take over bid through purchase of the stocks of Smith plc and one of the biggest advantages that will accrue to Chen plc is the tax benefits that it can claim because the difference between the book value of the assets of Smith plc that are acquired and the actual purchase price can be depreciated each year, thereby reducing the taxes that are payable....
4 Pages(1000 words)Essay
Exchange Mergers
...for a different reason. After 1990 mergers were being form to obtain operating efficiencies among two entities to compete against other players in an industry. Mergers have occurred in many industry including the airline, computer and retail industry. A particular business segment in which merger activity was not a common occurrence was among stock exchange institutions. There had been mergers in the past, but recently this segment of the financial services industry has been bombarded by multiple huge types of merger transactions among players in this industries including transaction across different international...
6 Pages(1500 words)Essay
Mergers & Acquisitions
.... This result to increase in the profit. A merger that introduces a vertically integrated firm can be profitable. (Farrel & Shapiro, n.d.). Mergers can be classified as follows: Conglomerate mergers: It occurs when two merging firms belong to two different industrial sections. Vertical mergers: It occurs when two companies produce the same type of goods combine. But the two companies should be in to different segments of production. Horizontal mergers: It occurs when two amalgamating companies belong to the same industry producing same type of goods. Congeneric mergers: It occurs when two companies...
15 Pages(3750 words)Essay
...and finally it shows the second and the third company to be chosen as a merger giving reasons for each. In my opinion if I was to pick a company to merge with between Dell and Intel it would be Dell. This is because it has more benefits to the company than Intel. Perry and Herd (19-12) shows that Dell is a multinational company and it already has a big market share all over the world which has been estimated to be 20 percent. This advantage would make SLP Company be in a position of venturing the global market as Dell would increase its industrial visibility. Dell is a company that deals with computers and SLP Company is involved in vehicles. Their merging type would be in the form of extending their product as the...
2 Pages(500 words)Essay
Topic: Mergers
...Mergers Mergers The shift in demand for technological products in the market is one of the factors driving change at HP. The second factor is the emergence of mergers as the new trend for conducting businesses. Thirdly, the decline in the profitability of the company is driving HP to change their approach to management (Dykman, Davis, & Lamb, 2012). Lastly, stiff competition in the market forces the management to adjust their approach to management in the competitive technological business. 2 The management at HP will utilize Palm Inc’s innovative platform in enhancing their growth in the market. Consequently, the management will seek professional advice from palm Inc before venturing...
1 Pages(250 words)Research Paper
Mergers and Acquisitions: Hostile Mergers
...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 merger. Hostile...
11 Pages(2500 words)Essay
...The Board has agreed to merge with a one branch $50M credit union located in another My approach is to assess the strategic and financial value of the potential merger. My approach will be conscious of potential strategic value to "company” in the form of; positioning through broader market access and increasing organizational competencies. Additionally financial value can be realized from an undervalued merger opportunity and/or through centralization and economies of scale. Market Analysis: Community: During due diligence, the community would be an important component of the market analysis. The market analysis would be conducted by reviewing the competitors within a 20 mile radius. ...
2 Pages(500 words)Essay
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 Differences in Mergers for FREE!
Contact Us