StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Business Combnations - Essay Example

Cite this document
Summary
Merger or acquisitions of companies help the LVMH in a great deal. Since most of the giant companies like LVMH tend to expand they start to explore new areas, as they are not familiar with the new area they start their business as a joint venture or merger with other company or by acquisition of other local companies…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.1% of users find it useful
Business Combnations
Read Text Preview

Extract of sample "Business Combnations"

Download file to see previous pages

Most of the mergers or acquisitions of LVMH happen to expand the company and to cross the geographical boundaries. A company interested to acquire another company has to look into every aspect of the functioning of the company. A company will have many departments and audit should be done on every departments accounts and then valuate the viability of merger of acquisition. After audit if it is found that functioning of all the departments are healthy and profitable then a memorandum is made between the companies.

Mergers can take place only when there are healthy relations between both the companies. Mergers also depend on the percentage of shares acquired of the firm. If the company to be acquired has good standing in the market, high share value and high points in the share market then we can say that a company is worth to be acquired or suitable for acquisition. Merger or acquisition sure has its impact on the employees and shareholders who are the unforeseen assets of the company. It is well known that any merger will have its pro's and con's.

Some mergers happen for profit and some not to incur losses. Employees may or may not be benefited by the merger. The new management may not provide all the facilities unlike the earlier owner. The new company will definitely try to curb miscellaneous expenses and cut management costs. In order to cut costs they may reduce number of employees working per department. After merger employees may be asked to change their shift timings, move from one department to another etc. employees need to co-operate with the new management.

Mergers may also have its negative effects on the employees and marketing strategies then the relation between the management should be positive enough so that there is no misunderstanding between the employer and the employee. After acquisition the new company will have their own planning strategies that might be entirely different and the employees need to co-operate and understand with new working policies and targets of the new company.One of the frequent reasons of merger (acquisition) failure is poor management and insufficient and poor management of financing comes second.

For starting or relocating or expanding a business sufficient capital is required. Having good financing is not enough in attaining profits; proper knowledge and planning are required to manage it well. These help in strengthening the management of financing and avoid common mistakes like miscalculating or underestimating the cost. Venture capitalists are the most common source of equity funding. Venture capitalists may be institutional risk takers, financial institutions, wealthy persons, etc.

and most of them specialize in industries. Venture capitalists are risk takers and show interest only in three to five year old companies that result in more than average profits. LVMH intensified the challenge of global integration and is showing high-end results, impact on the part of economical evolutions on nations mainly on cities and individual person's life standard. Because of the globalization and LVMH the technologies are exchanged. Globalization is having tremendous impact on cities.

Cities are transforming into great industrial belts. As the industries grow there will be visible impact on the economy. Job opportunities grow and innumerable colonies are developed. The growth is multi-fold and the technology exchange migration takes place.People of

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Combnations Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Business Combnations Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1526005-business-combnations
(Business Combnations Essay Example | Topics and Well Written Essays - 1000 Words)
Business Combnations Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1526005-business-combnations.
“Business Combnations Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1526005-business-combnations.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Combnations

Accounting for Business Combination

A business combination can be acknowledged as a transaction or an event where the acquirer gains control over one or in excess of one business.... The acquirer gains command over the assets and the associated liabilities… Accounting For business Combination Table of Contents Introduction 3 business Combinations 3 Advantages and Disadvantages of business Combination 4 Issues Related To Accounting for business Combination 7 Conclusion 10 References 11 Introduction A business combination can be acknowledged as a transaction or an event where the acquirer gains control over one or in excess of one business....
6 Pages (1500 words) Essay

The Origin and Development of Great Business Combinations

In the paper “The Origin and Development of Great business Combinations” the problem to be investigated is the social responsibility of corporation vis-à-vis achievement of its business goals within the broader framework of social justice and equitable exchange.... In olden days, while the development of business, private and government-sponsored was resisted by the aristocracy and others, it nevertheless had tremendously impact on the society and its development through the times....
7 Pages (1750 words) Assignment

GM Corp - FORD Corp Business Combination Strategic Growth Plan

Finance and Accounting Table of Contents Sources of Debt Financing for GM Corporation 3 Sources of Equity Financing for GM Corporation 4 Strategic Growth Plan 5 References 6 There are mainly two sources of financing which companies consider, they are debt financing and equity financing.... hellip; Here we would be discussing the sources of debt and equity financing of General Motors Corporation and develop a strategic growth plan to support the accusation plans....
3 Pages (750 words) Research Paper

Reporting Requirements for Business Combinations

IFRS 3 defines a business combination as the bringing together of separate entities or businesses into one reporting entity, and requires the purchase method of accounting to be applied to all such transactions.... business combination is also a term applied to external expansion in which separate enterprises are brought together into one economic entity as a result of one enterprise uniting with or obtaining control over the net assets and operations of another enterprise. ...
7 Pages (1750 words) Essay

Financial Accounting (BUSINESS COMBINATIONS/INTANGIBLE ASSETS/LEASES)

Goodwill represents the Goodwill is recognized under AASB 3 and it arises when a business combines with another business or one of the businesses acquires a controlling interest in any other business.... Goodwill is measured as an excess of the cost of business over the net fair value of assets, liabilities and contingent liabilities incurred or assumed at the acquisition date.... It might be due to the deteriorating economic environment or faltering acquired business....
4 Pages (1000 words) Essay

Business combination: GM Aquirse Ford Corp

Hence, the operating income of the company for the year 2011 can be business COMBINATION: GM ACQUIRES FORD CORP Table of Contents Table of Contents 2 GM ACQUIRES FORD CORP 3 References 4 GM ACQUIRES FORD CORP The net income that is attributable to Ford Motor Company was calculated as $20,213 million in the year 2011....
1 Pages (250 words) Research Paper

Business Combination

It involves acquiring the purchase of one firm or joint production of the product through a mutual agreement of the two.... Firms may decide to come… ether to increase their competitive advantage so that they have a big share of the market or lock out others from entering the market which may at times may lead to monopolies(Steingold, 2011). ...
4 Pages (1000 words) Research Paper

Amazon.com Business Combinations and Financial Results Analysis

om business Combinations and Financial Results Analysis Amazon.... om business Combinations and Financial Results Analysis How growth strategy alternatives utilized by Amazon.... ue to information technology and global communication networks, new business models have emerged.... In the recent European business Review, it is evident that market growth and good profits act as a promoter to help businesses thrive in a customer-driven globe....
3 Pages (750 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.
Contact Us