Mergers & Acquisitions

INTRODUCTION Profitable growth constitutes one of the prime objectives of most vocation firms. It can be achieved ?internally, either through the unlesst against of introducing/developing new products or by expanding the capacity of exist products the firm is engaged in. Alternatively, growth can be facilitated ? externally by mergers and acquisitions of existing business firms. Internal refinement enables a firm to retain control with itself and also provides flexibility in choosing equipment, technology, location etc., which be compatible with existing operations. However, internal expansion usually involves a longer period of implementation and great uncertainties, and sometimes, raising adequate funds is problematic. A merger or an acquisition obviates, in most of the situations, finance problems as payments are normally made in the form of shares of purchasing connection. Further, it also expedites growth, because the merged/ acquired company already has the products or facilities that are required. Merger-mania has enamored Wall Street. Nearly every sector of the world delivery has been affected by the recent wave of mega-mergers, which have include NATIONS BANK, BANK OF AMERICA, BOEING, McDONNEL-DOUGLAS, AOL, TIME WARNER, EXXON and MOBIL to name a few.

Last family alone, mergers involving American companies totaled a record of $1 trillion. In India, in 1999, there were nearly 12,000-crore-rupees-worth of mergers and acquisitions. MERGERS, ACQUISITIONS AND TAKEOVERS Some inefficient companies livelihood afloat because of management obstinacy where as some exactly by default. One method of weeding them out is to approach them liquidated, but in many cases that also implies wastage or destruction of semiprecious assets, established brand equity and even a untroubled team. Mergers, acquisitions and takeovers are modern methods of preventing asset-destruction and systemic decay. MERGER: The incorporated company acquires all existing assets and liabilities of the two companies. A merger... If you want to get a full essay, order it on our website: Orderessay

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