Market reaction towards merger or acquisition announcement: 13 2.8. Determinants of share price: 13 2.9. Motives behind takeovers: 14 2.10. Intricacies of Mergers and Acquisitions: 15 2.11. Merger and Acquisitions Waves: 16 2.12. Trend of Mergers and Acquisition in Europe in 1990s: 16 2.13 Empirical Evidence of Impact of Mergers and Acquisitions on the Shareholders’ Wealth: 18 2.14 Steps to follow while undertaking a Merger and Acquisition Strategy: 23 3. Research Overview and Methodology 25 3.1 Introduction: 25 3.2 Research Overview: 25 3.3 Problem Statement: 29 3.4 Research Objectives and Questions: 29 3.5 Research Purpose: 30 3.6 Research Approach: 30 3.7 Research Strategy: 31 3.8 Research Method and Data Collection: 32 3.9 Variables under Investigation: 33 3.9.1 Dependent Variable: 33 3.9.2 Independent Variable: 33 3.10 Conceptual Framework: 34 3.11 Hypothesis: 34 3.12 Ethical Issues and Considerations: 34 3.13 Limitations: 35 3.14 Summary: 35 4. Analysis and Findings 36 4.1 Introduction: 36 4.2 Case Study Analysis: 36 4.2.1 Case Study of Apollo Global Management and CVC Capital Partners acquisition of Brit Insurance: 36 4.2.2 Case Study of Kraft’s acquisition of Cadbury: 37 4.2.3 Case Study of URS Corporation’s acquisition of Scott Wilson Group: 39 4.2.4 Case Study of Vodafone’s acquisition of Mannesmann AG: 41 4.2.5 Case Study of SAB Miller Plc. Acquisition of Royal Grolsch NV: 43 4.2.6 Case Study of Air France-KLM Merger: 47 4.2.7 Case Study of GlaxoSmithKline (GSK) Merger: 49 4.2.8 Case Study of Credit Agricole acquisition of Credit Lyonnais: 52 4.2.9 Case Study of Banco Santander acquisition of Abbey: 53 4.2.10 Case Study of Tata Tea’s Acquisition of Tetley: 55 4.3 Hypothesis Testing: 56 4.4 Summary: 57 5. Conclusion and Recommendations 58 5.1 Conclusion and Summary of Findings: 58 5.2 Recommendations: 59 List of References 61 Appendix 70 Reflection 73 1.0 Introduction 1.1. Overview of the research study Globalisation has provided organisation the flexibility to expand their products and services in different parts of the world and this has increased the level of competition in different industries today. With greater level of competition, small and medium sized organisations face problems and difficulties in competing against some of the giants in the industries and therefore it creates problems for these small and medium sized firms. So in order to compete against the giants of the industry that are dominating the market, one of the strategies that organisations have come up with is merger and acquisition. A merger is usually defined as a situation when an organisation and its assets along with its liabilities are merged with another company’s assets and liabilities. In other words, it can be said as the merging of two or more firms to make one organisation (Cognizant, 2010). With mergers, the power and strength of the merged organisation increases and it is better able to compete against the competitors in comparison to the other firms in the market. Thus, the merged firm is able to compete against the giants with more resources and more strength and thus it is able to give tough time to its competitors. There are several advantages and benefits that organisations avail after merging with another firm and some of the most important benefits include cost reduction, achieving economies of scale, taking advantage of better technology or other resources of the other firm, getting access to more
Table of Contents 1.0 Introduction 4 1.1. Overview of the research study 4 1.2. Rationale of the research study 6 1.3. Significance of the research study 6 1.4. Problem Statement 7 1.5. Objectives of Research Study 7 1.6. Hypothesis 7 1.7. Research Methodology: 8 1.0.Literature Review: 9 2.1…
To understand RyanAir’s dominance in the low cost airline market the research methodology undertaken constitutes both secondary and primary research activities. Secondary research activities undertaken in this respect takes into account several company and government publications and as well as analysis of competitor websites.
The understanding over the impact and influence of misevaluation in the failure of mergers and acquisitions has been presented in a logical and illustrative manner by covering wide arrays of information on the research topic. The introduction part of the research presented an overview of the research topic, aims and objectives and detailed description of mergers and acquisitions.
The derivative market, London International Financial Futures and Options Exchange (LIFFE),which emerged after the foreign currency controls were lifted, was purchased by Euronext in January 2002, providing the opportunity for Euronext to combine the cash market and the derivative together to create one cohesive organization (Niederauer, 2012).
Red Ocean Strategy-Ryanair 27 Recommendations 28 Conclusion 29 Reference 31 Introduction The Irish airline company Ryanair headquartered in Dublin set off to enter the European Airlines market using the penetration strategy. The penetration strategy used by significantly old airline company helped it to gain a firm ground in the European airlines market.
8 2.4 Low Tax Regimes 9 2.5 Which Countries Attract Companies from UK, Europe and USA for Relocation? 12 2.6 How UK companies are being Affected High rates of Corporate Taxes? 14 2.7 High Corporate Tax Rates in USA 16 2.8 How High Taxation Impacts Tuna Fishing Companies and Business?
The scales of M&A activities are not limited to domestic markets but have significant contribution in foreign markets as well. This rising trends in the number of M&A implies that organizations are spending considerable amount of money and research to acquire companies that has potential to deliver required growth to acquirer or parent entity.
This dissertation reveals that the research problem can be stated as follows: to submit a report with findings and recommendations of the financial impact upon Menzies Hotel of the takeover of Cambridgeshire Moat House. The dissertation is also followed by an explanation of the research methodology.
To illustrate how a stock market operates and spreads the wealth in one country, let us say Company-A has been so successful in its manufacturing operations that all its goods sell as fast they are produced. The firm knows that it could sell even more products if it could get enough money to build another factory.
For whatever reason, companies sell out and new companies come to take their place. It is increasingly the way of the world. This is now the way business works. It is common for several industries to consolidate due to rising costs of production and several other factors. Large companies dominate in a global economy.
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