Got a tricky question? Receive an answer from students like you! Try us!

Mergers and Acquisitions as a Strategic Mean of Creating Value and Maximizing Shareholder Wealth - Essay Example

Only on StudentShare
Author : creminelliot

Summary

Mergers and Acquisitions as a Strategic Mean of Creating Value and Maximizing Shareholder Wealth By [Name of student] [Presented to] [Name of institution] [Date] INTRODUCTION Organisations in the current business environment thrive for success and creation of value…

Extract of sample
Mergers and Acquisitions as a Strategic Mean of Creating Value and Maximizing Shareholder Wealth

An Overview of Mergers and Acquisitions DePamphilis (2008 pp-04-06) defined mergers and acquisitions as a part of corporate and management strategies dealing with the buying, selling and combining of different organsiations having similar business activities or activities that can support the present and future growth and development in a systematic manner. Over the years, the distinction between mergers and acquisitions has become quite blurred in respect to economic outcomes but continues to attract organisations (Cartwright, Schoenberg, (2006 pp. 11-14). Studies have shown that 50% of acquisitions have been unsuccessful considering the complex process and different dimensions associated with the actual outcomes (Straub, 2007). Lazonick, O'Sullivan, (2008 pp-24-27) stated that the rationale behind mergers and acquisitions is based on the thought that two companies together can be more valuable and robust compared to two different companies. Moreover, mergers and acquisitions help in attaining cost efficiency by sharing operational and functional costs along with thriving to achieve greater market share and efficiency in a planned way (Harwood, 2006 pp- 24-35) Relevant Theories Mergers and acquisitions can be linked with various relevant theories. ...
Download paper

Related Essays

mergers and acquisitions
Case examples about the impacts of government regulation of mergers and acquisitions will be drawn from USA, Europe and China. The paper is specifically concerned with analysing current issues pertaining to government regulation of mergers and acquisitions in China in comparison to the other developed countries. According to Jackson & Schuler (2000), in a merger, the two firms are supposedly on equal footing after they have been merged where one new company will continue to exist while in an acquisition, it is clear that one firm will take control of the other’s resources. There are various…
10 pages (2510 words)
mergers and acquisitions-B
Are any Sell-Offs Likely? 10 7. Risk – Given that the Majority of Takeovers Destroy Shareholder Value, What Are the Major Risks? 11 Conclusion 13 References 14 Introduction Evidences reveal that M&As can be quite risky to lead the pathway of the acquiring company’s destruction and on the other hand, be highly beneficial to assist the company in the attainment of its long-term objectives. Despite the immense risk, companies opt for M&As in order to gain the benefits of operational leap, integration, larger customer base, channels and higher competencies (Galpin & Herdon, 2007). One of the…
10 pages (2510 words)
Essay on Shareholder Value
These dividends form an incentive to the shareholders to hold a company’s stock. Capital gain is the gain that if gotten above an assets original buying price upon disposal. Any realised capital gain forms an investment that has been disposed off as at a profit. An unrealised capital gain may on the other hand refer to an investment which is yet to be disposed off, but would lead to a profit if it was disposed off. Assets that can realise capital gains may include options, bonds, shares/stock, or businesses. A buyback kind of program involves a situation where a company repurchases its bond…
7 pages (1757 words)
How Mergers And Acquisitions Affect Shareholders' Wealth in Short Term: the European Market
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…
60 pages (15060 words)
Mergers and Acquisitions Case Study
This paper stresses that the acquisition was not difficult to integrate, and it is improbable that SABMiller would dispose the acquired firm. The paper has established that the acquisition heralded benefits to the SABMiller’s shareholders given that the acquisition aligned with the firm’s strategic priorities, and handed the firm with a leading position in the stable and profitable Australia beer industry. SABMiller expects Foster’s to become a critical part of its business via the application of its commercial capabilities and global scale, as well as by building on the initiatives put…
9 pages (2259 words)
Mergers and acquisitions
This paper seeks to examine examples of companies in the USA that were involved in a merger. Mergers often look forward to ensuring profits rather than losses in the business combination. The selected company that involved itself in a merger is the Continental Airlines Company. The company was involved in the merger with another airline company. The two companies were the entities in the merger. An entity in business or in mergers and acquisitions (M & A) describes the organization, company or corporation that is acquired by another organization, company or corporation or that merges with the…
10 pages (2510 words)
Mergers and Acquisitions
The aim of the study is to reveal the impact of merger and acquisition on the performance of companies in UK which will be achieved by analysing the financial performance of sample companies involved before and after M&A. The study will analyse the financial statements of randomly selected companies before and after merger so as to reveal the true impact from such merger or acquisition. The study begins with an introduction and initial discussion of background followed by a detailed literature review. The research methodology is designed so as to facilitate analysis of secondary data collected…
38 pages (9538 words)