Nobody downloaded yet

Mergers and Acquisitions History - Essay Example

Comments (0) Cite this document
Summary to essay on topic "Mergers and Acquisitions History"
Historically, mergers and acquisitions have been utilized in the hopes of augmenting business operations and increasing the breadth and scope of a company's financial portfolio. Furthermore, history has also illustrated the disadvantages and corruption that can accompany such activity…
Download full paper
Mergers and Acquisitions History
Read TextPreview

Extract of essay "Mergers and Acquisitions History"

Download file "Mergers and Acquisitions History" to see previous pages... This paper seeks to explore mergers and acquisitions as well as their inherent benefits and drawbacks. These business practices will also be examined in the context of foreign interaction.
There are some sensible reasons for executing mergers and acquisitions (M&As). The most obvious reason is profitability.
Let us write or edit the essay on your topic "Mergers and Acquisitions History" with a personal 20% discount.. Try it now
"Deals can be worth hundreds of millions, or even billions, of dollars. They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an M&A can represent the highlight of a whole career" (http://www.investopedia.com/university/mergers/, 2007). Another sensible reason is the gain of power by way of absorption. Absorption involves the securing of a competitor's resources which, in turn, increases the absorbing company's clout and influence. The final reason, for purposes of this analysis, is for companies to gain more appeal in the international market. If foreign investors can be persuaded to contribute to a particular company, that company's economic success can be significantly enhanced.
There are also some dubious reasons that come with the M&A game. One major obstacle is the time factor. The process of securing M&As can take considerable time to complete. Negotiations may fall through and/or companies may not be willing to engage in tedious legal wrangling. Another dubious reason is the inadequate protection from the law. Depending upon the state in which the companies operate, the law may or may not fully protect either one in terms of unfair business practices or hostile takeovers.
Cash transactions are one way to effectuate a merger or acquisition. In these types of transactions, a company can seize some or all of another company's assets. This can be beneficial in that tangible property can be assimilated into a company's operation. However, "a cash purchase will be a taxable merger, whereas a stock exchange will not be taxable. In a taxable merger, there are capital gains effects and asset write-up effects to consider" (highered.mcgraw-hill.com, 2007).
Stock transactions are another way to effectuate a merger or acquisition. In these types of transactions, the interest of shareholders comes in to play. In stock transactions, shareholders still retain their interest; it just gets transferred to the absorbing company. One glowing, positive benefit of these transactions is the tax consideration. "Certain exchanges of stock are considered tax-free reorganizations, which permit the owners of one company to exchange their shares for the stock of the acquirer without paying taxes"
(www.referenceforbusiness.com, 2007). The major disadvantage of this arrangement is that there is usually no transfer of tangible assets which, in turn, will not yield a transfer of title.
When merging with or acquiring an organization in another country, there are some risks that must be strongly considered. Arguably, the most significant risk encompasses this consideration: "A short history of precedent M&A activity and minimal financial disclosure pose various valuation issues; this is often compounded by unrealistic valuation expectations on the part of vendors" (www.ey.com, 2007). Companies that are interested in immersing themselves in foreign markets must thoroughly research economic trends and general business practices. Another serious risk is the ...Download file "Mergers and Acquisitions History" to see next pagesRead More
Cite this document "Mergers and Acquisitions History"
  • APA
  • MLA
  • CHICAGO
(“Mergers and Acquisitions History Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Mergers and Acquisitions History Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1517057-mergers-and-acquisitions-history
(Mergers and Acquisitions History Essay Example | Topics and Well Written Essays - 750 Words)
Mergers and Acquisitions History Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1517057-mergers-and-acquisitions-history.
“Mergers and Acquisitions History Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1517057-mergers-and-acquisitions-history.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Mergers and Acquisitions History"
Mergers And Acquisitions Basics: The Key Steps Of Acquisitions, Divestitures, And Investments
Transactions, deals, agreements and contracts are old as the field of commerce itself. In the recent decades, a diverse contingent flow of the transactions inculcating the control of business entities has become a predominant phenomenon. The evolution of the strategic transactions is a path breaking concept in business organization.
20 Pages(5000 words)Essay
Economic sense of Mergers and Acquisitions: Case of BAE Systems and EADS
Economic sense of Mergers and Acquisitions: Case of BAE Systems and EADS Introduction Integration in a given firm and/or industry refers to the process of organizing production based on organizational unification as well as technology of different production processes.
7 Pages(1750 words)Essay
Mergers and Acquisitions
Introduction In the last 5 decades there are more stances of cross border mergers and acquisitions than the number of lockouts and cases of bankruptcy. Although the number of cross border merger and acquisitions has increased manifold but the instances the number of cross border mergers and acquisitions has increased substantially.
6 Pages(1500 words)Essay
Mergers and Acquisitions
Man has always tried to conquer the unconquerable and do the undo able this is the same factor that drives the companies into the abyss of the unknown (Allan and Michael, 2010). In a bid to outdo and outsmart the competitors and get the upper hand of strategic advantages, companies cannibalise other companies or in some cases form understanding relationship.
10 Pages(2500 words)Essay
Mergers and Acquisitions Master Essay
This report is brief for management on some of the important issues relating to this process such as Synergy to be derived from a merger; Legislation and Laws governing mergers; and Defence against hostile merger attempts. Mergers are a business strategy that brings together two companies to exploit their individual strengths to address the larger issue of creating value for the stakeholders.
12 Pages(3000 words)Essay
Impact o Mergers and Acquisitions on Financial Performance
This study shall seek to equate if mergers and acquisitions actually serve their purpose of achieving financial performance as an end result. In delving into the process, this examination shall look at one case study of a successful bank that has and does employ the strategy of M&A on a consistent basis, as well as historical materials to look into the relative performances of a broad base of mergers and acquisitions, and delve into the manner in which mergers and acquisitions impact upon financial performance, utilising theory as well as some selected case studies of positive as well as negative outcomes.
19 Pages(4750 words)Essay
Mergers & Acquisitions
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.
8 Pages(2000 words)Essay
Mergers & Acquisitions
lly starts through a series of informal discussions among the board members of the companies, following with formal negotiations, letter regarding the objectives, goal towards the company, acquisition or merger agreement and finally, executing the deal and transferring the
15 Pages(3750 words)Essay
Mergers and Acquisitions
The merger and acquisition of the American Airways and US airways is considered as one of the biggest deals of the year. In 2012, the US Airways Group, which is also the parent group of the US Airways, expressed interest
4 Pages(1000 words)Essay
Mergers and Acquisitions
ereby implying that a new company takes over the former completely and establishes itself as the new owner (Müller-Stewens, Kunisch and Binder, 2010). 1. Mergers take place when a business firm is looking to diversify so as to reduce the risk associated with business
4 Pages(1000 words)Essay
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 Essay on topic Mergers and Acquisitions History for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us