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.
Nobody downloaded yet

The Topic is Post Merger Integration - Essay Example

Comments (0) Cite this document
Summary to essay on topic "The Topic is Post Merger Integration"
The coming together of companies to gain synergistic effects has been seen in recent times as the most profitable way of investment. We often hear of this or that company merging with another or taking over another. It is common knowledge as it prominent portion of broadcasted news and columns in business papers have of late been dedicated to mergers and acquisitions as they are the most important forms of investment today (Randeniya and Roivas, 2004)…
Download full paper
Polish This Essay
The Topic is Post Merger Integration
Read TextPreview

Extract of essay "The Topic is Post Merger Integration"

Download file "The Topic is Post Merger Integration" to see previous pages... A merger can be seen as the coming together of two or more firms of fairly the same size following a joint decision to form an entirely new firm, sharing power equally. (Gustafsson and Hukkanen, 2002; Randeniya and Roivas, 2004). Three types of mergers can be identified: vertical integration where two firm engaged in different stages of production of the same good/service come together,
Let us write or edit the essay on your topic "The Topic is Post Merger Integration" with a personal 20% discount.. Try it now
horizontal mergers where two firms at the same stage of production come together and conglomerates where two firms producing unrelated goods/services come together (Gustafsson and Hukkanen, 2002; Randeniya and Roivas, 2004). Vertical can further be split into forward vertical and backward vertical mergers.(Gustafsson and Hukkanen, 2002). A merger may occur to achieve the following results.
An acquisition on the other hand is a union of two firms in one of them survives while the other goes out of existence. (Gustafsson and Hukkanen, 2002). In certain occasions, the absorbed company may retain its individual identity if it is an important strategic element, for example, when Ford acquired Volvo, Volvo was still allowed to keep its brand name.(Randeniya and Roivas, 2004). ...
(Gustafsson and Hukkanen, 2002; Karin and Elisabet, 2006).
The distinction between mergers and acquisitions can viewed from three angles, viz:
The strategic reason or purpose underlying the decision;
Whether it is a friendly or hostile consolidation;
The degree of integration between the firms. (Gustafsson and Hukkanen, 2002)
Generally speaking, the motives for mergers and acquisitions can be broadly divided into two, viz, the financial and non-value maximizing reasons.
The financial reason: This deals with the financial value of the firm as a whole and looks at aspects such as increasing overall performance and creating shareholder value. (Risberg, 2006). This is due to the gains of synergy and overcoming of information asymmetry which might have been existing in the stand alone firms. (Risberg, 2006). Also, the firm's inability to fund certain marginally profitable projects as stand alone institutions is a motivating financial factor behind mergers.
There is also the non-value-maximising marginally based motive behind mergers. This arises mainly due to the manager's desires to increase power, sales or growth. This reason is also known as personal or strategic reasons. (Risberg, 2006).
In a merger, the newly formed firm has a completely new name while in an acquisition, the absorbed firm may retain its name, though management is handled by the acquiring firm. (Randeniya and Roivas, 2004).
Other remote reasons for mergers of acquisitions are psychological motives which is mainly fear. Thus, we find a situation where firms come together or acquire others or due to the fear of being acquired by other larger more efficient firms. (Risberg, 2006). Again, as firms grow old, they become rigid and more ...Download file "The Topic is Post Merger Integration" to see next pagesRead More
Cite this document "The Topic is Post Merger Integration"
  • APA
  • MLA
  • CHICAGO
(“The Topic is Post Merger Integration Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
The Topic is Post Merger Integration Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1509672-the-topic-is-post-merger-integration
(The Topic Is Post Merger Integration Essay Example | Topics and Well Written Essays - 1250 Words)
The Topic Is Post Merger Integration Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1509672-the-topic-is-post-merger-integration.
“The Topic Is Post Merger Integration Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1509672-the-topic-is-post-merger-integration.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "The Topic is Post Merger Integration"
Organizational ledership at the Huffington Post
This paper is a review of Arianna Huffington’s life and organizational leadership style depict a portrait of an extremely powerful, well connected, and successful woman who has achieved a position of strength in America’s cultural, political, and corporate environments that few other figures in history have achieved.
31 Pages(7750 words)Essay
Pro Merger And Anti Merger
Mergers and acquisitions have high chances of failure. The corporate culture or the cross cultural management is the key factor behind successful integration of two organizations.
17 Pages(4250 words)Essay
Healthcare post merger analysis
Gamble (2012) stated “As hospitals continue to merge and affiliate, it presents a real concern whether independent hospitals can sustain their model and survive. Hospitals are merging or being bought and sold at a rate that continues to grow, driven by declining reimbursement, tight credit and the pursuit for more leverage with payors.” Under this scenario, it is important to understand the key financial drivers that cause health care organizations to merge, evaluate their financial performance and review the determinants of financial results of the merged entities with a view to improve the financial planning process in the post-merger phase.
6 Pages(1500 words)Essay
UK Corporate Mergers and Their Implications
Two technological SMEs of UK has been selected as the sample organizations that have been participated in corporate merger process recently. Open ended interview with semi structured questionnaire of 5 HRD practitioners of the mentioned technological companies has been conducted in order to gather primary data.
6 Pages(1500 words)Essay
Merger and Acquisition
These types of transactions happen very often in the finance sector. Firms purchase other firms for a number of reasons. Whatever reasons prompt a particular deal, M&A are thought to be successful when multiple synergies are achieved and when the business combination increases the net cash flow of the merged business more than what each firm could have achieved on its own.
13 Pages(3250 words)Research Proposal
Performance Measurement in a Post Merger Integration Process
Faced with the threat of entry of multinational as previously closed markets become open, most small companies have found out that a merger could be the only way out of possible loss of market. A merger works like a form of integration of the firms to form one firm which is mainly in the interest of enhancing the performance of the two firms.
10 Pages(2500 words)Essay
Finance topic: Merger/acquisition of Bank One by Chase
Hence different firms of various industries have adopted merger or acquisition as growth strategy. Every now and then, the strategy is adopted just to survive the competition in the industry where profits are declining as a result of the diverse economic events. The
10 Pages(2500 words)Essay
Applied research method - topic to be defined out of the assignment
FDI can take place in the form of Greenfield projects or through acquisitions and mergers. Foreign investors acquire ongoing projects or firms in the host country. M&A continue to be a highly popular form of corporate development. Mergers and acquisitions bring closer
12 Pages(3000 words)Essay
Business Integration topic
i Fi Ltd, these concepts have been discussed in terms of strategies for management and constant innovation through change management as the world of commerce in today’s global market is dynamic in nature. In the year ending 30th of June, 2007, JB Hi Fi has managed to achieve a
12 Pages(3000 words)Essay
The war between Georgia and Ossetia
Georgia was an ally of the US and hosted their military personnel while South Ossetia had many Russian citizens. This paper aims at analyzing the five days war
5 Pages(1250 words)Essay
Let us find you another Essay on topic The Topic is Post Merger Integration for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us