Merger And Acquisitions ( M S - 976 Words

2. Literature Review 2.1. Merger and Acquisitions (MA) MA are often conducted for the strategic advantages that it entails such as improvements in efficiency, performance as well as synergistic gains (Junior et al, 2013). The potential source of synergies motivates firms to engage in MA where they believe the value generated from this strategic combination exceeds the respective individual firm value if they were to operate independently (Duksaite and Tamosiuniene, 2009). Synergies are derived from different sources to include revenue enhancement, cost reduction and tax gains. Revenue enhancement occurs as the combined firm is collectively able to generate larger revenues compared to their ability as separate, independent firms (Hillier et al, 2013). Hou et al (2015) stated that the ultimate aim of MA is to gain stronger market power and hence enhanced competitive position through the elimination of rivals This in effect increases control over market conditions such as supply and price. Nguyen et al (2012) supported this by highlighting that increased market power is one of the considerations taken when conducting synergistic acquisitions. 2.1.1. MA Wave Hou et al (2015) expressed that MA activities rarely occur in isolation, but rather a small number of MA activities often instigates a surge in MA volume, which eventually subsides to a number of smaller activities; a pattern resembling features of a ‘wave’. Consistent empirical evidence supports theShow MoreRelatedMergers And Acquisitions ( M S1625 Words   |  7 PagesIntroduction Mergers and Acquisitions (MA) are an established form of expansion for medium to large size companies, with the intention of creating more value by for example increasing competitiveness and transferring technology and innovation. In other words, it is assumed that â€Å"the combined company will have greater value than the two companies alone† (Marks Mirvis, 1992, p. 69), It can even be argued that, with the globalization of business, MAs are needed to keep up (Hitt, Franklin Zhu,Read MoreMergers And Acquisitions ( M S Essay771 Words   |  4 PagesMergers and Acquisitions (MA) is a term referring to the consolidation of companies or assets. A merger is a combination of two companies forming to become a new company, and an acquisition is the purchase of one company by another in which no new company is formed (investopedia.com). 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Mergers and acquisitions is one of theRead MoreThe Different Merger Strategies Employed By Acquirers1448 Words   |  6 PagesCritically examine the different merger strategies employed by acquirers Today’s business world hosts a phenomenon, a way to expand business activities by consolidating or buying another company, so called Mergers or Acquisitions (MA’s). MA’s is a corporate strategy that was introduced in the 1960s. It has experienced ‘waves’ of popularity and success while at the same time suffered criticism due to numerous failures. In today s global, competitive environment, mergers are sometimes the only meansRead MoreImpact of Acquisition on Employees Performance: A case Study of RBS818 Words   |  4 PagesAfter acquisition of any firm/ organization management need to motivate their employees and make them feel satisfied about their jobs, if the employees feel satisfied they perform their duties efficiently and when acquired firm’s employee performed best it directly affect the acquired firm’s performance. Motivation is very necessary in any field when an employee get motivated they perform their duty with the best of their knowledge and try to work hard. According to different researcher there areRead MoreStrategy Management Wal Mart and K Mart1108 Words   |  5 PagesStrategic Management Assignment 8 1. Do Wal Mart and K Mart exploit any merger and acquisition in recent 5-10 years? Merger amp;Acquisition | Wal Mart | K Mart | Acquisition | -Bempreco: This company has been acquiesced by Wal mart.   Bempreco is a retail chain in northeastern Brazil with 118 units (hypermarkets, supermarkets and mini markets). The acquisition gives Wal-Mart Brazil its first stores in the Northeast market. -Seiyu GK: is a Japanese group of  supermarkets, shopping centersRead MoreMerger Is The Combination Of Two Companies997 Words   |  4 PagesA merger or acquisition is the combination of two companies. In a merger, one of the companies loses its identity completely and is absorbed by the surviving corporation. An acquisition occurs when one corporation acquires all the shares of another. Both corporations may continue to operate individually or may operate as a combination of both. What are the benefits of these transactions? Why would a company choose to merge with or acquire another company? 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Main Street Trust is a diversified financial services company and the holding company for Main Street Bank Trust. On 20 September 2006, First Busey Corporation and Main Street Trust Inc. announced that they would come together as a merger of equalsRead MoreMerger Is The Merging Of Jds Fitel Inc. And Uniphase Corp1325 Words   |  6 PagesDefinitions: 1.1. Merger: â€Å"A merger is a combining of two or more companies to form a new company†. An example of a merger is the merging of JDS Fitel Inc. and Uniphase Corp. in 1999 to form JDS Uniphase. 1.2. Acquisition: To acquire another firm, usually through the purchase of shares of the company or to buy assets of the business directly. â€Å"Acquisition is the purchase of one company by another in which no new company is formed†. An example of an acquisition is Manulife Financial Corporation s 2004 acquisition