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Finance & Accounting
Pages 12 (3012 words)
Mergers and Acquisitions Part A Mergers and acquisitions have become a new strategy for the organizations in the present competitive world to have a firm stand in the market. Organizations struggling to make a mark in the market often take the help of other large organizations to revive their current situations.
The paper here studies the effectiveness of the mergers and acquisitions and also the limitations of the overall process in gaining the profitability of the newly formed company. The role of Merger and acquisition: Most organization incorporates the strategy of the mergers and acquisition only in time of crisis faced by them. As a result the organization entering in to the process fails to critically look in to several issues like the strategic fit, and the risk involved with such strategies. The shareholders value in the firm takes a major setback due to such hasty decision making, from the companies’ behalf. The organizations should critically analyze the role play of such strategies. Generally there are various roles which are carried out by the undertaking of an effective merger and acquisition strategy. (The Boston consulting group, n. d) Mergers and acquisitions can create opportunities for the organizations to lower the respective cost of various expenses incurred. The incorporation of the merger strategies by the organization helps them to establish a new set of business model which can result in gain of productivity of both the organizations concerned. The overall market position can also be improved by the successful implementation of the strategy. ...
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