Merger& Acquisition

Assignment 2
Mergers and Acquisitions (M&A)
Mergers and Acquisitions be on rise in India. all over the past five years, Indian companies had made global acquisitions for over $10 billion.
Basic reasons for scoop outing M&A strategy are as follows:
To obtain operating synergies between the two companies
To amplification shareholder value
To generate cost efficiency through instruction execution of economies of scale
To expect gains in tax
To increase market share
To gain memory access to new technology
To gain access to new locations

It might expect that M&A are quite beneficial and firms who adopt this strategy will always be in advantage. except in reality many M&A dissect these days because of the following reasons:
Cultural Incompatibility: Most principal(prenominal) reason for M&A failure is lack of inter heathen synergy. there might exist intercultural differences creating communication problems resulting in poor productivity. thither might be mismatch between corporate grow and work practices between the companies leading to failure .One popular slip is Diamler Chrystler. These companies could not obtain desired synergy due to cultural clashes between the companies.





Lack of draw awayment expertise to implement the consolidation process: Companies may be in the right counselor of pursuing M&A strategy but becalm failure could result if integration process is not easily handed by the management .Proper management expertise is demand for smooth integration

between the companies .Example: Hewlett Packard and Compaq. These companies failed because CEO Carly Fiorina did not have the skills to manage the companies and integration process. Then it hired a new motorcoach who applied his management skills and created a growing, profitable and increasingly priceless company

Flawed corporate strategy for either or both(prenominal) companies: If either of the companys strategies are flawed, it is not realistic to obtain the desired synergy from M&A. Example: field Semiconductors acquisition of Cyrix. On the...If you want to get a lavish essay, order it on our website: Orderessay



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