Mergers And Acquisitions College Essays Samples For Students

INTRODUCTION:

Owing to increasing competition and technological advancements, organizations are looking for different innovative ideas and strategies to create sustainable competitive advantage. The purpose of these strategies and tactics is to improve the overall performance of the company. This eventually leads to the creation of wealth for the shareholders. The main goal or aim of an organization is to create wealth for the shareholders. All strategies and decisions of the organizations are directly associated with this aim and hence are evaluated on the yardstick of wealth creation for the shareholders.
In today’s highly competitive environment organizations are engaging ...

Introduction

A merger involves joining two companies to form one new company. On the other hand, an acquisition is the term referring to when one company buys or takes over another company. In acquisitions, no new company is formed. Therefore, mergers and acquisitions are simply consolidation of firms. Most of the past mergers and acquisitions have ended up unsuccessful. This is not solely because one single problem, the failures arise from different factors such as the strategies adopted by the firms or an unfavorable business environment. This has led to most scholars and business analysts such as Porte, Lorenz and ...

Abstract

Currently, cross border mega mergers and acquisitions have become the order of the day. Firms are seeking to expand their operation through acquiring smaller firms or joining other firms in the same industry. The key question that has triggered a heated debate about the formation of mergers and acquisitions is whether the formation of cross border mergers and acquisitions form the best way to expand one’s business? Most critics have argued that mergers and acquisition cannot be termed as a smart route towards globalization and business expansion. They argue that such undertakings are carried out for the wrong reasons and ...

A merger is the unification of companies. Usually, there are five types of mergers: product extension mergers, conglomerate merger, market extension merger, horizontal merger, and vertical merger. Each type serves a unique economic function for the businesses involved. Acquisitions occur when a company takes over another firm (Galpin, & Herndon, 2014). The difference between the two strategies is that a merger is meant to combine the interests of the business entities involved thereby creating a firm that is much stronger. In mergers, the two combining companies usually get a new name. The merging companies are mostly the same size. On ...

Mergers and acquisitions are business strategies taken by companies, that involve either merging two companies or operating them together or a company taking over operations of another company. Multinational corporations tend to acquire full ownership or a certain percentage of a company’s operations to incorporate others services within its objectives and to some extent, it can be seen as a business move to reduce speculated competition. This step is essentially used to improve the financial performance of the company and to lessen the risk that the corporation is likely to face. Mergers are common in many areas of ...

Introduction

Economic irregularities have led organizations to rethink their strategy regarding mega-mergers. The question that each international business organization is asking itself is whether to merge or not to merge. Mega mergers are losing its spark and constantly fading as the time is passing by. For over half a decade mega-mergers have become rare due to which organizations are forced to rethink their strategy and tactics regarding mergers. As the success of international business organizations depends highly on this particular strategy, organizations now have to chose their own path i.e. whether to bear the burden of negotiations and integration or to ...

Introduction

Wal-Mart which is one of the largest retailers in the world operates in 15 countries over 8,500 stores. The growth rate of Wal-Mart has come to a saturation point in many segments due the slow economic condition in the world. However, Wal-Mart has potential for an inorganic growth which has influenced the Wal-Mart management to look for some feasible options. Whole Foods Market, a leading company in natural food products retailing, is doing well in the southern region of USA. This paper upon analyzing Whole Foods Market from a financial perspective will evaluate many aspects of possible merger or acquisition with ...

[Faculty]

Abstract

It is a fact that every organization has its eye on increasing its profitability with time. In line with this thought, researchers and scholars have come up with models and theories that have helped business enterprises to become stable in their quest to remain relevant in the market. Many companies have adopted different theories and models that have seen them through time and have helped them to remain profitable. However, it is also clear that the market is a relatively volatile arena that has, in recent years become quite unpredictable. Major organizations that compete for the same resources and markets ...

Globally, mergers and acquisitions are very common as business organizations expand and enhance their competitiveness and operations. The underlying assumptions in the formation of mergers and acquisitions are that the resultant merger or company has a greater value than individual companies merging. However, despite the optimistic expectations of the corporate acquisitions and mergers, the frequency of failure for this endeavor seems very likely (Pikula, 1999). This has mainly been attributed to the focus on the financial transactions as well as the strategic issues surrounding this corporate activity and neglecting other critical success factors such as human resources. Often when ...

NPV= A1/ (1+k)1 + A2/ (1+k)2 + A3/ (1+k)3 + An/ (1+k)n – C

Where; A- Annual cash flow

k- Cost of capital

C- Initial investment

n- Number of years

Therefore;

NPV= 450,000/ (1+0.11)1 + 639,000/ (1+0.11)2 + 700,000/ (1+0.11)3 + 550,000/ (1+0.11)4 + 1,850,000/ (1+0.11)5 – 2,425,000
= 450,000/1.1 +639,000/1.232 + 700,000/1.368 +550,000/1.518 + 1,850,000/1.685 - 2,425,000
= 405,405.41+518,668.83+511,695.91+362,318.84+1,097,922.85-2,425,000
= 2,896,011.84-2,425,000
NPV = 471,011.84
The NPV ...

Perhaps because of the extraordinarily high estimate of close to a 90% failure rate, there has been much commentary on the reasons behind the high risk of failure for mergers and acquisitions (Price, 2012). Although the 90% figure may have more to do with the way the researcher is defining failure than with any real measure of business risk, it remains that there is a significant possibility for merger and acquisition deals to go poorly. One effective way to examine key reasons for this involves examining decision points over time during the merger and acquisition process. At each step in the ...

Several market and economic as well as fiscal factors may influence the existence and operation of a company. Precision Machines for instance may be affected by the following economic and market factors;

Market factors.

Mergers and acquisitions
If Precision Machines Company competitors enter into a merger or one of the major competitors acquires the other, the company’s growth prospects may be severely hampered. Some of the ways in which the company will be affected are as follows;

Economies of scale.

The merged companies may enjoy increased economies of scale in terms of discounts on purchases, (Elvis Picardo, 2014). Bulk purchases made by the ...

Business Strategy

Strategic Alliances: A Critical Analysis of Successful Alliances toward Knowledge Creation and Management
Introduction
In today’s business landscape, creating sustainable value for customers and shareholders requires the initiation of an alliance strategy. Strategic alliances are alternative modes of global business operations that small to large enterprises are considering in order to achieve stronger and more effective market presence. Moreover, alliances are a fact of life for business, which needs to align present and future strategy to current radical technological and structural changes, globalization, and increased competitive pressures (Janczak, 2008). Meanwhile, the issues of trust, partner selection, and the ...

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Datasil, a Canadian distribution firm specializing in sale of computer and electronic equipments was apparently bought by the US firm with a carefully planned strategy to access the Canadian Market. According to experts firms that plan expansion in other countries must thoroughly evaluate the external and internal factors of the M&A before establishing an operation in a new country (East 1). The expansion plan must address all these issues before initiating the process in order to achieve a smooth transfer of operations. According to East, the first and foremost issue is the financial soundness of the ...

A merger is the combination of two separate companies into a single company with shareholders of the pre-merged two companies becoming shareholders of the merged company (Coyle, 2000). On the other hand an acquisition or take-over refers to the acquisition of the target company assets by a predator company. The key difference between a takeover and a merger is that in a takeover, the shareholders of the target company lose ownership and control, while in a merger shareholders of both companies become shareholders of the new merged company (Coyle, 2000).
There are several reasons for Mergers and Acquisitions (M&A) ...

When looking at the pattern of actions and business approaches that define a company’s strategy it is clear that some do not apply to social media sites such as Facebook. One of these sectors are the actions to gain sales and market share with lower prices based on lower costs because there are not many ways a social media site can see substantial savings by lower costs.
Actions to enter new product or geographic markets or to exit existing ones is an approach that Facebook is poising itself to take advantage of with its new Trending option. By including ...

- Globalization and burgeoning technology/innovation that shrink product-life-cycles, coupled with global competitor’s quality and price, brings goods to the USA adding to 80-90% mega-competition for most consumer goods sold in USA, compared to <25% in 1950’s. Equally, global companies compete severely and challenge US firms abroad.
- The U.S. and Eurozone economies play major roles in the world economy and are crucially important for each other’s prosperity. The two sides combined account for around 40% of world GDP, over 25% of world trade, 60% of world foreign direct investment flows, and 60%-70% of ...

Volvo/ Scania Merger

Introduction
Mergers and acquisitions is a situation where a corporate acquires another corporation, with the resulting outcome being an increase in the size of the corporation as well as earnings enhanced by combination. The merging and acquisition process comes in two broad dimensions: Horizontal acquisitions: this occurs when a corporation acquires the competitor`s combined shareholdings in the same industry and then systematically reduces the costs of the acquired corporation as it integrates its operations into a careers company. Vertical acquisitions: this occurs when corporations acquire their own supply chain. It mostly occurs in business holding companies or enormous trusts. The piece ...

Business-Level and Corporate-Level Strategies for Coca-Cola Company

Business-Level and Corporate-Level Strategies for the Coca-Cola Company
Introduction
The Coca-Cola Company deals with beverage products and has more than 500 brands in over 200 countries. Even though the company's primary line of business is in sparkling beverages, the company has diversified in the recent past to produce still drinks such as water, juices, teas, coffees and energy drinks. Coca-Cola is known for its four non-alcoholic sparkling beverage brands, which are Coca-Cola, Diet Coke, Sprite, and Fanta. The company was founded in the U.S. in 1886 and has since grown to be the largest beverage company in the world. ...

Business Strategy

Strategic Alliances: A Critical Analysis of Successful Alliances toward Knowledge Creation and Management
Introduction
Going beyond the current trends in the business literature on strategic alliances, this paper explores ways strategic alliances are helping organizational firms gain competitive edge, more particularly through opening the access to markets and eventually in the creation of knowledge. This is followed by analysis of issues surrounding strategic alliances, current business examples and challenges faced by organizations that form alliances. Finally, we conclude with a brief take on the future of strategic partnership and knowledge creation research.

The Meaning of Strategic Alliance

Since becoming a trend three decades ago, ...

Rights of the shareholders

While the shareholders are the most important stakeholders of the company, however, very few control the day to day running of the company’s business activities. Therefore, in order to safeguard their interest, the company range multiple rights of the shareholders and provide them the eventual power to influence the company’s decisions. Below we have discussed the rights of the shareholders:
a) Right to attend the general meeting and cast their vote
All the shareholders of the company have the right to receive notice of the general meeting, including, Annual General Meeting(AGM) and Extraordinary General Meetings(EGM). ...

Suggest the key financial drivers that most likely will cause health care organizations to merge. Provide support for your rationale.
There are several key financial drivers that are more than likely going to cause health care organizations to merge. The first key financial driver is the challenges in the access to the capital. When the organizations do not have the investments that they want but they do have the potential for long-term grow they are going to face some challenges like the access to capital. This means that they might be taken over by the bigger firms. Healthcare has ...

Introduction

The U.S. airline industry continues to be fiercely competitive, due to a combination of rising costs, increased government regulation, fluctuating macroeconomic conditions, and increasingly price sensitive consumers (Southwest Airlines, 2016a). Environmental pressures have led to several mergers and acquisitions within the industry, including major carriers as well as regional and domestic carriers (Southwest Airlines, 2016a). Low-cost domestic airline carriers that offer non-stop service to popular domestic and tourist destinations within North America have emerged as formidable competitors to large, international carriers such as United Airlines. Southwest Airlines and Allegiant Air are two carriers that focus on variations of the ...

Introduction

For a long time, consumers in the United Arab Emirates suffered from unfair competitive practices that they experienced as a result of companies looking to gain the best profits. The companies thus took advantage of the fact that there were no existent rules and regulations that could control the unhealthy competition in the region. Unhealthy competition is act as a barrier to new firms joining that would automatically provide services that are price friendly to the users. Additionally, consumers are supposed to receive quality goods and services from the companies. However, in the presence of weak regulations with regards ...

Ethics and Governance

The concepts of ethics and corporate governance are unceasingly becoming importance in the modern day organizations as they play a great role in addressing key issues. In that respect, the two concepts take varying approaches and their application varies among firms (Elms et al., 2010). Regarding the ethics issue, it relates to the norms and morality of a given community and what is right or wrong draws from those norms and morality values. In the modern world, the issues of ethics have been popularized given the increased cases of organizations that have been judged on the ethical basis (Cannon, ...

For the purpose of meeting the goals and objectives of this assignment, we will be choosing two brands of retail stores such that one is strong and the other one is not and then after comparison and contrasting, we would propose a brand plan for the less successful retail store. Brand equity and brand portfolio of both the retail store will be analyzed in much detail. Let us look at the comparison and contrasting of the chosen retail store. We have chosen Walmart as the successful retail store and Safeway, Inc. as the less successful one.

Walmart

We know that ...

Global Economics

Answer of Question 1
The joint venture is not a good idea because the potential for disputes and conflict is present in the joint venture. The partners in a joint-venture may differ in their opinion of managing the business affairs of the company (Campbell). Disagreement may arise between the partners regarding the future direction of the business and disputes on the capitalization of the business. The partners having conflicting goals and interests may affect the joint venture if the interests and goals are not communicated in a proper way.

Answer of Question No 2

The Heckscher-Ohlin theory indicates that the countries will export those products in ...

With the emergence of new markets that demand services and products from train makers, many companies offering these services are striving to make their presence felt for them to win competitive advantage against their competitors. Following the dynamics and high investment cost involved in the train making industry, companies are strategizing on various methods that can win them a competitive advantage in these markets. Merging of companies is a strategy that the Chinese government is employing to win a competitive advantage over its competitors especially from Europe.
Two of the biggest Chinese train makers companies in China are planning for a merger ...

Industry Positioning Analysis of Whole Foods Market

John Mackey and Renee Lawson Hardy established a small store in Austin, Texas in 1980 to sell natural and organic foods. They called the store Whole Foods Market. Today, Whole Foods Market is the leading retailer of natural and organic foods with more than 370 stores across North America and the United Kingdom (University of Oregon Investment Group 2). The business has experienced fast growth and enjoyed high profits. Its fast growth has been facilitated by successful mergers and acquisitions, such as Wild Oats Food chain and Fresh and Wild. The 21st century presents the business with challenges, such as ...

Introduction:

An organization cannot survive for long and it has to adapt itself to the ever dynamic operating environment and also engage itself into strategies that foster growth. No matter, if the business organization is a multi-million corporate or just a start-up, each of them frames out growth strategies. Most business enterprises are constantly faced with the challenge of ‘prospering and growing their businesses. Simply stated, Growth for any organization is measured in the form of increased revenue figures, profits or asset base. However, pertaining to its own individual needs and characteristic, each of the organization decides to go with creating competitive ...

The case study method is a research method that uses a case, which is a “single example of some phenomenon of interest” (Veal, 2005, p. 169). As such, a case study is a type of research or study that focuses on a single event, product, workplace or workplace unit, or organization. However, it is also possible for a case study to involve more than one case, particularly if the objective of the study is to make a comparison of the cases involved. It should be noted, though, that even in such instances, each of the cases involved remain to be distinct from each other and can be ...

1. Company Description
Thomas Cook Group Plc is a travel company, which owns travel agencies and car rental agencies. The Group also has its own fleet of aircraft, cruise ships and resort real estate. Thomas Cook is known as one of the largest travel companies in Europe.
2. Current Strategic Situation
Appendix 1 shows the share of major players in the travel industry of Great Britain, the number of customers for the operators with the latest ATOL license in relation to the size of the common market under all licenses ATOL:
Appendix 2 shows the dominant ...