User Account

All Pages

Corporate Strategy, Finance, Other Engineering

Assignment Help:
Corporate Strategy

Strategy

In our earlier discussion, we made distinctions between merger and acquisition or takeover. However, they generally involve similar analyses and evaluations. A merger or acquisition might be considered successful if it increases the shareholder value. Though it is quite difficult to say how the firm would have performed without merger or acquisition, but the post-merger poor performance would be attributed as a failure of merger or acquisition. What are the chances that mergers or acquisitions would succeed? Empirical evidence shows that there is more than fifty per cent chance that they would succeed.

There are several reasons responsible for the failure of a merger or acquisition. They include:

1. Excessive premium: - an acquirer may pay high premium of acquiring its target company. The value paid may far exceed the benefits. This happens when acquirer becomes to eager to acquire the target for prestige or increasing the size of its empire.

2. Faulty evaluation: - at times acquirers to not carry out the detailed diligence of the target company. They make a wrong assessment of the benefits from the acquisition and land up paying a higher price.

3. Lack of research: - acquisition requires gathering a lot of data and information and analyzing it. It requires extensive research. A shoddily carried out research about the acquisition cause the destruction of the acquirer’s wealth.

4. Failure to manager post- merger integration: - many times acquirers are unable to integrate the acquired companies in their businesses. They overlook the organizational and cultural issues. They do not have adequate understanding of the culture of the acquired companies which creates problem of integration and synergy.

Related Discussions:- Corporate Strategy, Finance

Finance (Derivative Securities), Let C(K) denote a European vanilla Call op...

Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

Noise suppression in aircraft design, Noise Suppression in Aircraft Design:...

Noise Suppression in Aircraft Design: It has been seen that the first step towards noise suppression is at the design stage of the rotating and static parts of the engine. The

Project, list 10 major project topic in agricultural engineering

list 10 major project topic in agricultural engineering

Flight dynamics-trim tabs, Trim tabs are small flaps attached to the rear o...

Trim tabs are small flaps attached to the rear of the main control surfaces. They can be adjusted the pilot to reduce the force required to hold the control surface in its deflecte

Vlsi, Working of bi- CMOS invertor in vlsi

Working of bi- CMOS invertor in vlsi

Fins vs canards , Fins vs Canards  Canard control - Good lift/latax co...

Fins vs Canards  Canard control - Good lift/latax control for moderate angles of attack. - Shed vortices can interfere with tail to generate roll moment. - Tendency to stall

Ten principles of engineering economic analysis, Ten Principles of Engineer...

Ten Principles of Engineering Economic Analysis 1. Money has a time value. 2. Make investments that are economically justified. 3. Choose the mutually exclusive investment alt

Optics, If the light source in figure 12.1 (see figure below) of the Warren...

If the light source in figure 12.1 (see figure below) of the Warren Smith text is replaced by a 100W light bulb, and the lens aperture is 20cm, what would the 1cm detector at point

Flight control -state estimators , State-estimators for continuous time lin...

State-estimators for continuous time linear systems The state space state and output equations of continuous time linear systems is of the form? x = Ax + Bu + v and y

Robotics, how to become robotics engneer

how to become robotics engneer

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd