We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Boeing & McDonnell Douglas Merger & Acquisition - Research Paper Example

Free

Extract of sample
Boeing & McDonnell Douglas Merger & Acquisition

Boeing & McDonnell Douglas Merger & Acquisition By 04 April Merger & Acquisition Analysis The ever growing world of business uses different restructuring techniques in order to improve their market share and beat competition. The ways to acquire or become part of an organization are mergers, acquisition and sometimes hostile takeovers. “The purchase of one corporation by another is called merger. An acquisition is essentially the same thing as a merger, but the term usually is used in reference to a large corporation’s purchase of other corporations. Although all mergers and acquisitions are friendly, hostile takeovers also occur. A hostile takeover is a situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger.” (Pride, Hughes, & Jack, 2010) This assignment is an analysis on the merger of the two aviation giants, Boeing and McDonnell Douglas. This merger was said to be one of the largest in its kind and the tenth largest in the United States of America. The Boeing Company was founded in 1916 in the US and with time it became the number one company in the aviation business. The Boeing’s business encompasses 20% defence deals and 80% commercial ones. The McDonnell Douglas Company which is a merger between McDonnell Aircraft Corporation and Douglas Aircraft Company came into being in 1967. The customer base for this company is around 72% defence and the rest commercial. The Boeing & McDonnell Douglas merger took place in July 1997.

Check these samples - they also fit your topic

My Dilemma (acquisition, merger and initial public offer)
The internship program was therefore an all-good program for me. Upon reporting to my post, I was assigned to the Growth and Expansion department of the company. The company in question was an advertising firm whose business had to do with public and media advertisement.
9 pages (2250 words)Research Paper
Merger between Boeing/McDonnell Douglas
Merger and acquisition serve strategic objectives. A merger takes place when two organizations of about equal size combine to form one enterprise (David, 2005, p. 213). On the other hand, acquisition occurs when a large corporation, commonly known as acquirer, acquires a smaller corporation, or vice versa (David, 2005, p. 213).
2 pages (500 words)Research Paper
The Boeing and McDonnell Douglas: Merger and Acquisition
One of the most celebrated mergers in recent history is the merger of two of the largest commercial and defense aerospace companies: Boeing and McDonnell Douglass. In fact, it is actually said by economic and business analysts that few mergers in recent years has attracted so much attention…merger between The Boeing Company and McDonnell Douglas Corporation…this…created the world’s largest aerospace company and the second largest air defense supplier, and combined the last two remaining commercial jet airplane manufacturers in the United States.
2 pages (500 words)Research Paper
Boeing, Corporate Welfare
15 Appendix 2: U.S. Profits, Federal Income Taxes & Tax Breaks for Ten Major American Companies (Citizen for Tax Justice, 2002). 16 Appendix 3: Relation between Income Tax changes for the top 5% and Job Creation (Tyson and Zidar, 2012) 18 1. Introduction United States (US) every year provides $125 billion in corporate welfare to big profitable corporate entities through subsidies, tax breaks and other aids (Sanders, 2013).
5 pages (1250 words)Research Paper
Merger, Acquisition, and International Strategies
It also extracts bitumen and upgrades it to vacuum gas and synthetic crude oil (Marathon Oil Corporation annual reports, 2008). Henry M Ernest founded Ohio Oil Company in 1887. Standard Oil Trust then obtained it. The company later split up with Standard Oil Trust and bought Transcontinental Oil Company.
5 pages (1250 words)Research Paper
Merger between Boeing/McDonnell Douglas
213). Merger and acquisition strategy is pursued to ensure the attainment of certain advantages. First, revenues will be higher for merged corporations in comparison with the revenues earned in their separate existence. Second,
2 pages (500 words)Research Paper
Two Recent Merger and Acquisition Cases
Importantly, the deal pushed the value of Verizon wireless to more than $290 billion. This massive value was reportedly larger than Google’s market capitalization and surprisingly more than the
3 pages (750 words)Research Paper
Merger, Acquisition, and International Strategies
Microsoft is a manufacturer of computer packages and softwares; InteliCloud is also a manufacturer of computer softwares. The corporations that have been involved in a merger and acquisition are Microsoft and Nokia. Nokia is a company from Finland and it
7 pages (1750 words)Research Paper
Merger, Acquisition, and International Strategies
This form of corporate management strategy is rampant in lucrative industries that have homogeneity of goods, hence stiff competition. In this kind of industry, mergers and acquisitions play a critical role in helping the
6 pages (1500 words)Research Paper
This was a horizontal merger with the company keeping its name as The Boeing Company. During that time the defence spending was shrinking and the commercial market was booming. This situation was favourable for Boeing Company’s but the main concern for this firm was the cyclical ups and downs making the aerospace industry more and more unpredictable. The McDonnell Douglas majorly dealt in the defence sector was concerned by the decreasing defence spending, leading to a decrease in share. The two companies decided to merge in order to achieve synergy and increase efficiency. The valuation criteria used for deciding the merger was discounted cash flow (DCF) analysis. The DCF method is an important tool for evaluating mergers and acquisitions. The cash flows of McDonnell Douglas was very appealing to the Boeing Company, as McDonnell Douglas showed good earnings in the third quarter of 1996, when the analysis of weather to acquire McDonnell Douglas was being evaluated. The discounted cash flow method is more reliable than the relative other valuation techniques due to the accurate and independent result. The relative methods like the price to earnings ratio etc can give misleading results at the time of undervalue or overvalued market. However the discounted cash flow method takes unto account the future cash flows of the firm and comes up with the accurate net present value of the firm. It is accurate because it is not a guess work or a trial and error situation. This method is known for its simplicity, accuracy and independent value. However, this method does have its shortcomings as well. This method is only as accurate as its input value. The assumption of future cash flow, discount rate, growth rate of the company, frequency of dividends etc. can all pose threat to the value obtained from this method. Thus, this merger was the largest one in the history of aerospace merger and a very successful one. The betas after this huge restructuring were calculated which showed optimized results in terms of decreasing risk and increasing profitability. Reference: Pride, William M., Hughes, Robert J., & Jack, R. Kapoor. (2010). Business. Mason: South Western Cengage Learning.
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Boeing & McDonnell Douglas Merger & Acquisition Research Paper”, n.d.)
Retrieved from https://studentshare.net/other/26083-activity
(Boeing & McDonnell Douglas Merger & Acquisition Research Paper)
https://studentshare.net/other/26083-activity.
“Boeing & McDonnell Douglas Merger & Acquisition Research Paper”, n.d. https://studentshare.net/other/26083-activity.
  • Cited: 0 times

Summary

The ever growing world of business uses different restructuring techniques in order to improve their market share and beat competition. The ways to acquire or become part of an organization are mergers, acquisition and sometimes hostile takeovers…
Boeing & McDonnell Douglas Merger & Acquisition
Read TextPreview
Comments (0)
Click to create a comment
Let us find you another Research Paper on topic Boeing & McDonnell Douglas Merger & Acquisition for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us