Managing Mergers and Acquisitions

Introduction Mergers and acquisitions are becoming commonly practiced strategic options for makeups. Organizations are coming together one way or another(prenominal) to realize emerging commercial opportunities. Goals for this upcoming and popular scheme converges around themes including growth, diversification and achieving economies of scale. A union is a desegregation of two organizations into one. On the other hand, acquisition is the purchase of an organization by another which gives the buyer or acquirer the agency of control over the organization. The prime reason for mergers and acquisitions are to throw or increase market pct and to increase share holder value by cutting cost and initiating new, expand and improved services. However, in many cases, the opposite is happening. For example, the Daimler-Chrysler merger; although some(prenominal) the firms were performing quite well, the merger of the two organizations did not see to meet the expectations of benefiting from the merge. Months following the merger, the stock price of Chrysler fell by roughly one half and the firm was beginning to slip money and was expected to continue losing money for the coming a few(prenominal) years. To make things worse, there were significant layoffs in Chrysler following the merger of the two firms.

Merger or acquisition success correlates without delay with the level and quality of the planning involved. Organizations tend to spend wanting(p) time in analyzing and anticipating current and future market trends as well as desegregation issues. Even though the overriding mergers and acquisitions are carefully designed to ensure a strategic fit between the two organizations, the task of integrating pipe down remains difficult. Research shows that the opportunity for mergers to fail is the greatest during the integration process. Good focus plays a very important intent contributing to the success of mergers or acquisitions. This paper attempts to look into issues pertaining management of... If you want to get a full essay, order it on our website: Ordercustompaper.com

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