Name of the Writer Name of the Instructor Subject Date Submitted Two Recent Merger and Acquisition Cases The decade that will be remembered in the history of corporate finance as the decade of mergers and acquisitions will undoubtedly be the 1980s, as this was the period in which the most prolific mergers and acquisitions were made both in the USA and the UK…
A merger occurs when two firms integrate their skills and acumen with each other to take advantage of business opportunities or sidestep threats. Sometimes the decision to merge can be to increase size due to legal e.g. capital requirements, or to acquire efficiencies, talents or market access in a totally different but complementary field of business endeavor. In an acquisition, however, one firm is bought outright by another for a price that may be made public or disclosed to only the stakeholders and the relevant Government authorities. It is clear that both firms should get something out of the corporate deal or the effects are not long lasting. Indeed it has been noticed that many participant workers and managers are found ruing the past when things were much simpler and better- however they are forced to deal with the situation ‘as is now’ and have put in too much effort to unwind the deal again. One acquisition that took place in the healthcare industry between September-October 2010 was that of ZymoGenetics, Inc. being bought by Bristol Myers Squibb (BMS) for US$885 Million. With this acquisition, BMS hoped that it would gain inroads into the fight against cancer, hepatitis C, and other diseases for which ZymoGenetics already had some research products in the pipeline. ...
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In the modern-day business world, many corporate organizations, private and public companies extensively implement strategies by which they buy, sell, divide and combine with one or more other business entities. The main reasons for which these businesses acquire or combine with others are that mergers and acquisitions allow businesses to support one another financially and managerially, thereby promoting rapid growth.
h the process of selling and buying between two companies in the form of acquisition and formation of a mixed entity in the form of a merger. Merger and acquisition helps the organization to grow in terms of its size and operation thereby gaining a competitive advantage.
Gamble (2012) stated “As hospitals continue to merge and affiliate, it presents a real concern whether independent hospitals can sustain their model and survive. Hospitals are merging or being bought and sold at a rate that continues to grow, driven by declining reimbursement, tight credit and the pursuit for more leverage with payors.” Under this scenario, it is important to understand the key financial drivers that cause health care organizations to merge, evaluate their financial performance and review the determinants of financial results of the merged entities with a view to improve the financial planning process in the post-merger phase.
Faced with the threat of entry of multinational as previously closed markets become open, most small companies have found out that a merger could be the only way out of possible loss of market. A merger works like a form of integration of the firms to form one firm which is mainly in the interest of enhancing the performance of the two firms.
al examinations between the sheets of the companies, emulated by formal transaction, a letter of expectation, due to tirelessness, a buy or merger understanding, lastly, the execution of the arrangement and the exchange of installment. One of the famous merges that have happened