Guide on How to Write University Essays, Courseworks, Assignments and Dissertations

Mergers and Acquisitions

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Review
Mergers and acquisitions are very present in the modern organisation of economies. This article deals with the fundamentals of such a phenomenon, highlighting the consequences of such a trend and providing the basics for understanding the workings of mergers and acquisitions.

During the last century the concept of business went through major changes in terms of the company ownership (Papers4you.com, 2006). Nowadays, fierce competition is no longer only in the access to market, but also in what regards to business ownership. Most of times, deals involving mergers and acquisition involve billions and are reported in newspapers all the time. The process of globalisation had an increasing effect on access to foreign firms’ ownership control, and thus becoming the process of controlling other firms more usual. The traditional family business concept is now under threat and the concept of business has changed as a consequence of the trend.

Basically the operation of merger and acquisition is defined as when two companies get together, either by resulting on a new firm or by one being controlled by the other. The former form of merging firms is known as concentration and defined as A+B = C and the later is known as incorporation and represented by A + B = A. Another important issue is related to the nature of the firm business activity or the market in which they operate. A process of merging companies is a strategy of diversification of the business and can be of three forms. Vertical diversification occurs when two or more firms in different stages in the value chain are merged into the same company. Horizontal diversification is present when the merging occurs between firms operating in different business (e.g. Virgin). Finally, geographical  diversification happens when firms expand their territorial control by merging or acquiring companies operating in different geographical location.

There is a huge number of examples on mergers and acquisitions. Although only the one involving higher amounts of money become known to the public. And it is so widely used that there is also a great number of academic literature devoted to the study of the phenomenon.

The consequences of a higher number of mergers and acquisitions is a higher concentration of the business, which implies possibly implies a higher level of monopoly (under certain circumstances) and the business ownership control in the hands of few (Papers4you.com, 2006). In both cases there are losses for the economy, via the increase of the prices and because the overall economy becomes more dependent on few economic agents. On the other hand, the concentration of activities permits higher levels of profits (when economies of scale and economies of scope are present) and eventually increasing the investment levels in the country (in the case that these profits are reinvested).

 

References

 

Papers For You (2006) "P/B/600. International mergers and acquisitions: literature analysis", Available from http://www.coursework4you.co.uk/sprtfina42.htm [19/06/2006]

 

Papers For You (2006) "P/F/393. Mergers and acquisitions: criteria of success", Available from http://www.coursework4you.co.uk/sprtfina42.htm [19/06/2006]

C/B/653. Mergers & Acquisitions in banking industry USA and Europe

E/B/255. Case Study of DaimlerChrysler: lessons in post-merger integration

S/B/248. Globalisation strategy of Singtel, Optus

S/B/204. Corporate Environment: takeover of Telefonica by O2

S/B/190. Dubai Ports World acquisition of the Peninsular and Oriental Steam Navigation Company: an analysis of the CFIUS decision and lost potential benefits of the Foreign Direct Investment into the United States.

E/B/262. Report on GlaxoSmithKline merger

E/B/233. Vodafone AirTouch's Bid for Mannesmann

C/B/500. Master's Dissertation. The motives, benefits and future performance of Disney after the acquisition of Pixar

C/B/498. Master's Dissertation. Acquisition of NatWest by Royal Bank of Scotland

E/B/216. Dissertation. The Effects of Mergers and Acquisitions on the Automotive Industry

E/B/168. With reference to the alternative reasons for mergers and acquisitions, outline and evaluate the motives for Daimler-Benz and Chrysler in their 1998 merger, in the context of the changing world automobile industry. Now, five years after the merger, was it a success? Recommend a future strategy for DaimlerChrysler.

C/B/286. Adidas/Reebok Merger

E/B/141. Forms of integration: mergers and acquisitions

S/B/139. Dissertation. Acquisition of Safeway: Where did Morrisons go wrong?

P/B/862. Telecommunications industry and NTL/Telewest merger

P/B/848. HRM during merger: problems and recommendations

P/B/840. GlaxoSmithKline (GSK) mergers and pharmaceutical industry

P/B/835. Merger and organizational change: theory and case study of AOL and Time Warner

C/B/439. Strategic Alliances vs. Mergers & Acquisitions

C/B/431. Powerelectric & Electrocar: The human side of merger

P/B/765. Merger of Brownloaf MacTaggart (BM) and Watkins International: problems analysis

P/B/740. Merger of GlaxoSmithKline

P/B/650. Report on Amstrad, mergers and acquisitions

S/F/103. Commerzbank M&A Activities with Korea Exchange Bank: Were We Sold a Peach or a Lemon?

S/F/97. Finance and Growth Strategies

C/F/166. 'Mergers seldom produce the expected benefits that managers wish for'. Discuss.

C/F/164. What is NPV? And why do mergers fail?

C/F/156. Dispersed and concentrated ownership in the UK/US and the Continental Europe

P/F/515. UK estate agency market: takeovers of 1980s

P/F/501. Acquisitions in UK estate agency market

P/F/499. ICI: history of mergers and acquisitions

P/F/497. Acquisition of PeopleSoft by Oracle

P/F/484. Diageo and Scottish & Newcastle: options for merger and acquisition

P/F/445. Report on acquisition of BAX Global by Deutsche Bahn

P/B/600. International mergers and acquisitions: literature analysis

P/F/393. Mergers and acquisitions: criteria of success

P/F/388. Merger of Norwich Union and CGU: shareholder wealth effects

P/F/376. Is merger mania a temporary trend or a universal tendency?

P/F/375. Overview of mergers and acquisitions

P/F/366. Prerequisites to merger success and methods of its measurements

C/F/114. Mergers and Acquisitions

S/F/58. Mergers and Acquisitions

C/F/110. Merger: Boots and Alliance Unichem

P/F/357. Mergers and acquisitions in pharmaceutical industry

P/F/351. Theory of merger in analysis of companies performance

P/F/345. Acquisition of Homebase by GUS in 2002

P/F/266. Takeovers: causes and consequences

C/F/87. Vodafone Mannesmann Hostile Takeover

S/F/42. Mergers & Acquisitions: Interbrew of Belgium & AmBev of Brazil

S/F/39. Event study of mergers and acquisitions

C/F/69. Mergers and Acquisition in telecommunication industry: Vodafone Mannesmann case

P/F/244. The challenges of Takeovers

S/F/34. Hewlett Packard - Compaq: Analysis of the Merger

S/F/32. Dissertation. Mergers and Acquisitions in Bank Holding Companies: Shareholder Value Creation and the Importance of Organizational Fit

S/B/63. MBA Dissertation. Strategic Analysis of the Merger of Astra AB and Zeneca PLC

P/F/223. Merger in the EU: Telia Sonera case

P/F/192. Dissertation. Influence of Takeover on Top Managers' Turnover: Evidence from Chinese Listed Companies Between 2001-2003 years

P/F/156. Hanson Trust: Case Study

P/F/149. Merger Activity in the UK

C/F/46. What is the resulting outcome of an M&A Deal Announcement Shock on the Share Price Performance? The modern evidence of the UK financial markets data in a short-medium term window.

S/F/14. Reasons and effects of Mergers and acquisitions

P/F/114. Analysis of HP-Compaq Merger

P/F/95. Merger and Acquisition: Reasons and Motives, Synergy, and Misuse

P/F/96. Merger and Acquisition: the Process and Regulations

GR/FM/10. Do mergers generate net benefit?

P/F/90. Synergy as a Reason for Merger and Acquisition

P/F/93. Economic Motives for Mergers and Acquisitions

C/F/15. Investigation of GlaxoSmithKline Merger

P/F/98. Bid Strategies and Tactics, Methods of Defence and Payments

P/F/31. Current Merger Wave

P/F/91. Operating Synergy and Financial Synergy from Merger and Acquisition

C/F/27. Merger Case: Deutsche Bank and Banker's Trust

P/F/97. Merger and Acquisition: Financial Accounting

P/F/48. Analysis of Hostile Takeover

P/F/92. Diversification as One of the Motives for Merger and Acquisitions

Y/F/10. To merge or not to merge and why merge at all? Analysis of Hostile takeover.

P/F/94. The Improved Management and Tax Motives for the Merger and Acquisition

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