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

Assembly programme, program to work as xor gate

program to work as xor gate

Identify the key issues evident at global mining, The atmosphere in the roo...

The atmosphere in the room was tense. Ted Kimoski, Financial Director for Global Mining, had justfinished his presentation. John Campbell, Managing Director, sat quietly making not

Core sand, Q.27 Explain the desirable characteristics of core sand. What ar...

Q.27 Explain the desirable characteristics of core sand. What are the normal binders used in core sand ? Types of cores used in foundry. Ans. Core Sand : The core and ma

Line the crown of the tunnel, A 10m diameter circular tunnel is to be excav...

A 10m diameter circular tunnel is to be excavated in a jointed ground.  The joint sets spaced at 6m are dipping towards the West at 50°.  A horizontal circular tunnel is to be cons

Variable interest rate, What is Variable Interest Rate? Interest rates whic...

What is Variable Interest Rate? Interest rates which is offered by banks or financial institutions on loans or deposits which are liable to change according to circumstances. For e

Fibre optics communications, explain the fibre optic communication system w...

explain the fibre optic communication system with block diagram

CHEMICAL, TRANSPORT 2 CHEMICAL PROCESS CONTROL CHEMICAL REACTIONS ENGINEERI...

TRANSPORT 2 CHEMICAL PROCESS CONTROL CHEMICAL REACTIONS ENGINEERING

Semiconductor basics summary, N-type (for example add Antimony) The are...

N-type (for example add Antimony) The are materials which have Pentavalent impurity atoms (Donors) added and conduct by the "electron" movement and are called as N-type Semi

Siliconizing, 1.defination 2.explain the mechanisms of each process. 3. exp...

1.defination 2.explain the mechanisms of each process. 3. explain in detail how many types of each process 4. advantages 5. disadvantages

Equivalent shaft horsepower - aircraft maintenance , Equivalent Shaft Horse...

Equivalent Shaft Horsepower (EHP) In practice there is always a certain amount of jet thrust in the total output of the turbo-propeller engine and this must be added to the s.h

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