Merger & Acquisitions
MEGE AND ACQUISTION
Merger and Acquisition
Merck & Company Inc. is an American pharmaceutical company operating in different countries globally. The company is one of the world largest manufacturers of drugs by revenue and market capitalization, and the company offers different products such as vaccines, prescription products, consumer products and animal products. Its operative business is being operated by MerckKGaA where 30% of the shares are publicly traded and the Merck's family owns 70% of the company interests. Merck operates four different business divisions such as Consumer Health (over-counter pharmaceuticals), Merck Serono (biopharmaceuticals), Merck Millipore (pharmaceutical research & technology products) and Performances Materials (high-tech chemicals). (Merck, 2011). Typically, the company Consumer Health division offers quality products globally and its brands are available in countries in the North and South America, Europe, African and Asia. Over the years, the company has long known to improve people's health and well-being and the…...
mlaReference
Carol, U.K. (2002).Merck-Medco to become stand-alone PBM. Drug Topics.4:12.
Investopedia, (2010).The Basics of Mergers and Acquisitions. Investopedia Inc.
Main, A. Wiss, S. Motoba, A. et al. (2012). Merck & Co., Inc. (NYSE: MRK). Krause Fund Research.
Merck (2011). Merck Annual Report. Merck & Co.
Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, which bring separate companies together to form larger ones. When they're not creating big companies from smaller ones, corporate finance deals do the reverse and break up companies through spinoffs, carve-outs or tracking stocks.
Not surprisingly, these actions often make the news. Deals can be worth hundreds of millions, or even billions, of dollars. They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an M&A can represent the highlight of a whole career. And it is no wonder we hear about so many of these transactions; they happen all the time. Next time you flip open the newspaper's business section, odds are good that at least one headline will announce some kind of M&A transaction.
Sure, M&A deals grab…...
Mergers and Acquisitions
As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based?
Before any M&A proceeding should occur. An analysis of the macroeconomic factors and industry related factors should be conducted. In this particular M&A case, as CEO, my primarily job is chief risk officer. Here, I do not want to overpay for a company with underlying operational issues that I am oblivious too. The M&A team must first place a value on the business that corresponds to the synergy or business enhancements it will provide. This figure must also include a margin of safety in order to prevent overpaying for the company in question. For example, if the underlying business is…...
Mergers and Acquisitions
The most recent worldwide economic meltdown that began in 2007 decimated the auto industry. Chrysler and GM were two of the 'big three' that did not escape without filing bankruptcy and restructuring; shedding thousands of jobs and debts in the process. Ford managed to escape this fate and the accompany government take-over but also suffered tremendous loss in terms of sales and employees. At the height of the recession sales of U.S. vehicles had plummeted by nearly a third; with GM falling by 45%, Ford 30% and Chrysler 35% (BBC News online, 2009).
If anyone was projecting the recession; their warnings went unheeded while investing continued at breakneck speed until the economy sputtered to a standstill. It resulted in some formidable takeovers including the loss of the Jaguar and Land over luxury brands by Ford to Tata Motors Ltd. (TML). The former is known for its luxury passenger cars…...
mlaReferences
Anand, M. (2008). Cover Story Tata Jaguar Land Rover. Outlook Publishing. Available online on URL http://books.google.co.uk/books?id=kjEEAAAAMBAJ&pg=PT27&dq=tata+motors+jaguar+land+rover&cd=1#v=onepage&q=tata%20motors%20jaguar%20land%20rover&f=false
Duane I.R., Robert E. Hoskisson, Michael A. Hitt (2007) "Understanding Business Strategy: Concept and Cases" Cengage learning, Available on URL: http://books.google.co.uk/books?id=jX7RXTi8MTEC&pg=PT151&dq=tata+motors+jaguar+land+rover&cd=2#v=onepage&q=tata%20motors%20jaguar%20land%20rover&f=false
Kumar, G and Pradeep, J. (2009), "TATA," Business journal
Mortimer, J. (2009). Jaguar lifts XF robot total to 179. Industrial Robot: An International Journal, ISSN 0143-991X, Volume 36, Issue 2, pp. 114-120
Merger and Acquisition
Mergers and Acquisitions
Mergers and acquisitions (M&A) is an aspect of business strategy dealing with the amalgamation of two or more companies of similar entities or buying, selling or dividing different companies. Despite several common features of M&A, there is still a distinction between the two concepts. Merger is the amalgamation of two businesses of equal or nearly equal sizes; however, acquisition is the takeover of entire business of small firms by big firms. Similar to other industry, M&A has become a valuable tool that healthcare sector use in driving sustainable clinical and financial outcome. "Healthcare mergers are increasingly being considered as a possible solution to creating sustainable and patient-centric service models." (Carter, 2011 P. 3). If done right, merger and acquisition is a tool that healthcare provider employ to enhance competitive market advantages.
Fundamental objective of this paper is to investigate how the merger and acquisition strategy could assist…...
mlaReferences
Aharon, D.Y. Gavious, I. & Yosef, F. (2010). Stock Market Bubble Effects on Mergers and Acquisitions. The Quarterly Review of Economics and Finance.
Brown, T.C. Werling, K.A. Walker, B.C. et al. (2012). Current Trends in Hospital Mergers and Acquisitions. Healthcare Financial Management. 66 (3) 114-120.
Carter, R. (2011). Taking the Pulse. KPMG International. Switzerland.
Gaynor, M. & Mark, T (1999). Physician Contracting with Health Plans: A Survey of the Literature. Carnegie Mellon University.
International mergers and takeover processes are positively influenced by efficient control by the parent country which may lead to the formation of a direct link between protection of investors and a companies' access to debt financing (La Porta et al., 1998 as cited in Martynova and enneboog, 2008). Martynova and enneboog in the year 2007 explained that debt financing is directly related to merger and acquisitions across the border (Martynova and enneboog, 2008).
Lastly, a major chunk of the findings identified that the impact of the comparative size of transactions, ways of paying, free cash flow, strategies of diversifying, hostility, variations in economic development, proximity, stock price run up and the association with language are some of the factors that need to be considered by both the target and the bidder company (Martynova and enneboog, 2008).
The respective analysis brings value to the overall text in mainly two ways. Firstly, the…...
mlaReferences
Benos, E., Weisbach, M., 2004. Private bene-ts and cross-listings in the United States. Emerging Markets Review 5 (2), 217 -- 240. Taken from: Martynova, M. And Renneboog, L. (2008). Spillover of corporate governance standards in cross-border mergers and acquisitions. Journal of Corporate Finance 14, 200 -- 223
Blume, M., 1979. Betas and their regression tendencies: some further evidence. Journal of Finance 34, 265 -- 267. Taken from: Martynova, M. And Renneboog, L. (2008). Spillover of corporate governance standards in cross-border mergers and acquisitions. Journal of Corporate Finance 14, 200 -- 223
Bris, a., Cabolis, C., 2008. The value of investor protection: rm evidence from cross-border mergers. Review of Financial Studies 21 (2), 605 -- 648. Taken from: Martynova, M. And Renneboog, L. (2008). Spillover of corporate governance standards in cross-border mergers and acquisitions. Journal of Corporate Finance 14, 200 -- 223
Doidge, C., Karolyi, a., Stulz, R., 2007. Why do countries matter so much for corporate governance? Journal of Financial Economics 86 (1), 1 -- 39. Taken from: Martynova, M. And Renneboog, L. (2008). Spillover of corporate governance standards in cross-border mergers and acquisitions. Journal of Corporate Finance 14, 200 -- 223
Perhaps the biggest struggle entities face aside from legal rules and regulations that may be different between the target and bidding company (Galpin & Herndon, 2001) is the integration of two company's organizational cultures and beliefs (Daniel & Metcalf, 2001). Most H Managers and strategic planners argue that people are the most important part of any organization. When two companies merge and incorporate a group of people with differing cultures and identities, many companies find it difficult to change the culture and identity one company has relied on for so long in a way that allows for integration of the bidding company's organizational culture (Daniel & Metcalf, 2001).
Conflict always arises in mergers and acquisitions, but cultural conflict is often more prevalent when M&as involve international trade and relationships. To help manage cultural differences, each company must focus on collaborating with one another to discover the similarities and differences that…...
mlaReferences
Coller, S. (1993). Mergers and acquisitions: Special dangers and opportunities.
Management Quarterly, 34(4): 4.
Daniel, T.A. & Metcalf, G.S. (2001). The management of people in mergers and acquisitions. Westport: Quorum Books.
Galpin, T.J. & Herndon, M. (2000). The complete guide to mergers & acquisitions:
Creating an economy of scale can prove difficult, and the new, larger entity can be unwieldy. Again, using stock to finance the deal can be its downfall "a booming stock market encourages mergers...Deals done with highly rated stock as currency are easy and cheap, but the strategic thinking behind them may be easy and cheap too." ("Mergers and Acquisitions: hy They Can Fail," 2006, Investopedia)
Financial risks of merging with or acquiring an organization in another country and how those risks could be mitigated
Globalization," defined as "the arrival of new technological developments or a fast-changing economic landscape that makes the outlook uncertain are all factors that can create a strong incentive for defensive mergers. Sometimes the management team feels they have no choice and must acquire a rival before being acquired. The idea is that only big players will survive a more competitive world." ("Mergers and Acquisitions: hy They Can…...
mlaWorks Cited
Mergers and Acquisitions: Definition." 2006). Investopedia. Retrieved 5 Dec 2006 at http://www.investopedia.com/university/mergers/mergers1.asp
Mergers and Acquisitions: Valuation Maters." (2006). Investopedia. Retrieved 5 Dec 2006 at http://www.investopedia.com/university/mergers/mergers2.asp
Mergers and Acquisitions: Why They Can Fail." (2006). Investopedia. Retrieved 5 Dec 2006 at http://www.investopedia.com/university/mergers/mergers5.asp
Similarly, the simple fact is that with a merger nothing remains static forever -- growth cannot occur unless flexibility occurs.
Some flexibility is required here, and there may be times when transfers will need to be solidified.
Technology
In most cases, systems and technology will improve based on greater efficiencies. However, it is also likely that basic input and programs will require change and flexibility as well -- what two companies use exactly the same system in exactly the same manner?
This issue may interfere with the efficiency of individual department for the short-term. However, the phase period of merging should allow for adequate time to learn about their new positions, technical needs, etc.
Quality
Both organizations are committed to the highest quality possible; it is in their respective strategic plans. It is important to focus on ways to improve quality, not interagency competitiveness.
The bottom line needs to be quality of goods and/or services --…...
mlaREFERENCES
Angrisani, D., & Goldman, R. (1997). Predicting Successful Mergers and Acquisitions. Binghamton, NY: Haworth Press.
Bruner, R.F. (2004). Applied Mergers and Acquisitions. New York: John Wiley.
Carr, P. (2006). Implementing Culture Change. Alexandria, VA: Oakmount Press.
Farb, D. (2004). Reorganizing for Customer and Patient Care. Los Angeles: University Press.
ibliography
Amos Web Dictionary, Gloss arama, Merger, http://www.amosweb.com/cgi-bin/awb_nav.pl?s=gls&c=dsp&k=merger, last accessed on February 28, 2007
Wikipedia, the Free Online Encyclopedia, Mergers and acquisitions, Due Diligence, Procter&Gamble, http://en.wikipedia.org/,last accessed on February 28, 2007
CNN Money, Results of Weekly Pole, 2005, Chris Isidore, P&G to buy Gillette for $57, CNN Money, January 28, 2005, http://money.cnn.com, last accessed on February 28, 2007
Procter&Gamble buys Gillette to Form the World's iggest Consumer Products Group, FinFacts Ireland, usiness&Finance Portal, January 29, 2005 http://www.finfacts.com/cgi-bin/irelandbusinessnews/exec/view.cgi?archive=2&num=292,last accessed on February 28, 2007
Christine Spivey Overby, George Lawrie, Procter&Gamble buys Gillette, Forrester Research, January 28, 2005, http://www.forrester.com/Research/Document/Excerpt/0,7211,36326,00.html, last accessed on February 28, 2007
James M. Kilts, Answers.com, usiness iographies, 2007, http://www.answers.com/topic/james-m-kilts, last accessed on February 28, 2007
Andrew Caffrey, Investors ack Gillette, International Herald Tribune, usiness, June 29, 2005, http://www.iht.com/articles/2005/06/28/business/gillette.php, last accessed on February 28, 2007
Chris Isidore, P&G to buy Gillette for $57, CNN Money, January 28, 2005 http://money.cnn.com/2005/01/28/news/fortune500/pg_gillette/,last accessed on February 28, 2007
Procter&Gamble Acquires Gillette, CS News,…...
mlaBibliography
Amos Web Dictionary, Gloss arama, Merger, last accessed on February 28, 2007http://www.amosweb.com/cgi-bin/awb_nav.pl?s=gls&c=dsp&k=merger ,
Wikipedia, the Free Online Encyclopedia, Mergers and acquisitions, Due Diligence, Procter&Gamble, accessed on February 28, 2007http://en.wikipedia.org/,last
CNN Money, Results of Weekly Pole, 2005, Chris Isidore, P&G to buy Gillette for $57B, CNN Money, January 28, 2005, last accessed on February 28, 2007http://money.cnn.com ,
Procter&Gamble buys Gillette to Form the World's Biggest Consumer Products Group, FinFacts Ireland, Business&Finance Portal, January 29, 2005 accessed on February 28, 2007http://www.finfacts.com/cgi-bin/irelandbusinessnews/exec/view.cgi?archive=2&num=292,last
Impact of Mergers and Acquisitions on the Health Care Workforce
Workers in health care, because of the conversion of health care into a commercialized business in many respects, have found themselves exposed to the same opportunities and problems that face workers in the rest of the working world. Because of the fact that certain types of health care workers are in high demand, many of these workers will quickly switch jobs and be more likely to expose the organizations to staffing shortages unexpectedly. Additionally, from the viewpoint of the employers, mergers and acquisitions often create massive layoffs or pay cuts, due once again to the view of health care as a business rather than public service (Ginsburg, 1996).
Also, the bottom line to consider, in addition to all of the affects on the health care workforce, is the impact that the workers pass along to the patients.
Impact of Mergers and Acquisitions on…...
mlaReferences
Ginsburg, C. (1996, November 18). The Patient as Profit Center: Hospital Inc. Comes to Town. The Nation, 263, 18+. Retrieved January 18, 2007, from Questia database: http://www.questia.com/PM.qst?a=o&d=5002274395
Levins, R. (2000, September). Is Capitalism a Disease? The Crisis in U.S. Public Health. Monthly Review, 52, 8. Retrieved January 18, 2007, from Questia database: http://www.questia.com/PM.qst?a=o&d=5002365863
Singer, P.A. (2002, May). Rx for Reform. Foreign Policy 76+. Retrieved January 18, 2007, from Questia database: http://www.questia.com/PM.qst?a=o&d=5000749779
Mergers and Acquisitions
06 or 56.1% to $2.95 while Zhone shares fell down to $2.90 or 18%. Yet, of the new company, Zhone shareholders will own 63.2% and Paradyne shareholders will own 36.8%. (Zhone to Buy Paradyne in Stock-Swap Deal, Says 2Q)
Even the Paradyne seniors are being retained and the Chairman and Chief Executive as also the Chief financial Officer will remain as consultants for a period of two years. The analysis by financial experts showed that Zhone will lose 2 cents per share on total revenue of $29.3 million. The earlier performance had been also bad with a loss of 6 cents per share on sales of $21 million. Paradyne stated that its performance will improve, but analysts say that the results will be a loss of 1 cent per share and revenue of $27.3 million and this was down from an income of 1 cent and $24 million which it got…...
mlaReferences
Kinne, Konstanze. (June, 1999) "Efficiencies in Merger Analysis" Inter-Economics. Retrieved from Accessed 10 September, 2005http://www.hwwa.de/Publikationen/Intereconomics/1999/ie_docs1999/ie9906-kinne.htm.
Sprint, Nextel Complete $35 Billion Merger" (13 August, 2005) Retrieved at 10 September, 2005http://biz.yahoo.com/ap/050813/sprint_nextel.html?.v=2Accessed
Sprint Nextel Completes Merger" (12 August, 2005) Retrieved at 10 September, 2005http://biz.yahoo.com/bw/050812/125434.html?.v=1Accessed
Sun Microsystems completes StorageTek purchase" (31 August, 2005) Retrieved at 10 September, 2005http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh22393_2005-08-31_22-31-51_n31396739_newsmlAccessed
he most popular amongst these options is satellite television. Satellite television can be advantageous to consumers because there are more stations available to choose from and the price is the same or similar to that of cable television companies.
Most recently the Internet has changed the manner in which people access the news, communicate with one another, and watch television programs. As a result cable television companies have attempted to adopt new business models that often involve mergers and acquisitions. hese mergers and acquisitions can take place between cable television companies to create a larger cable television company or between cable companies and telephone/Internet service providers. Some of the largest mergers have taken place between cable companies and high technology companies. here are a number of variables that can determine the success of a merger.
Cable television is a major industry in the United States and throughout the world. According to…...
mlaThere are approximately 30 to 60 channels that most cable stations can offer consumers. In recent years there has been a substantial increase in the number of television stations available. For instance, there are systems that offer more than 100 channels. The majority of subscribers to cable television have over 54 channels from which to choose. The channel capacity of a cable system encourages providers to offer customers many different services. Not only do cable companies offer over-the-air television broadcast signals, they also offer customers a variety of programming. This programming includes special entertainment features, business information, news, weather, movies, sports, and programming designed for certain groups such as women, children, and ethnic and racial groups (FCC, 2000).
Many cable companies also develop their own local programming and provide access channels so that institutions and public agencies. Cable companies can also offer access channels for rent during specific time slots. "Electronic banking, shopping, utility meter reading, and home security are some of the home services that are possible using the two-way transmission capabilities of cable television systems" (FCC, 2000).
In recent years the manner in which cable television is delivered has changed rapidly because of changes in technology and the manner in which information is delivered. There was a time when the delivery of television beyond local stations was in the hands of a few. However over the last decade the increased popularity of satellite television has presented the cable industry with a great deal of competition. Competition is also present as it pertains to the manner in which people get information such as the news. In today's tech savvy environment consumers often turn to the
One specific phase that the author uses that can be applied to RBS is that innovations may force banks into decisions that are micro-functional, but macro-dysfunctional. In the case of RBS, leadership focus on reductionist metrics that offered increases in efficiencies in certain business functions, however by focusing on micro-functional areas of improvement the organization lost perspective on the macro benefits or losses incurred by a more comprehensive analysis. Furthermore, when examining possible herding behavior by industry executives, if these executives became focused on achieving the same competitive advantage through short-term gains in micro-functional areas and this behavior could potentially spill over and produce a flood of similar behaviors industry wide. Hence, which ever metric became the prefer analysis tool by executives or speculators could influence an entire industry and shift the industry toward inefficiencies.
Governmental Boundaries
The final perspective in which this paper will reflect upon in this particular case…...
mlaWorks Cited
Bower, Joseph L. 2001. "Not All M&as Are Alike -- and That Matters." Harvard
Business Review 79, no. 3: 92-101. Business Source Premier, EBSCOhost
(accessed May 20, 2010).
Croft, Jane, and Andrew Bolger. 2009. 'Painful' ABN deal spelled doom. FT.com, April 3, (accessed May 20, 2010).http://www.proquest.com
Mergers and Acquisitions
The energy sector was the largest with the most merger and acquisition activity in terms of total value which was disclosed according to PricewaterhouseCoopers (Investopedia, 2011). There were two acquisitions that were particular interesting in this industry. The first was Alpha Natural Resources, Inc. acquisition of Massey Energy for over eight billion dollars. This acquisition is interesting because Massey Energy was the company that owned the Upper Big Branch Mine in est Virginia that experienced an explosion and twenty nine miners were killed. The unfortunate accidents made the operating procedures and lack of safety standards transparent to investors and the stock value plummeted making it a target for Alpha Natural Resources.
Massey Energy was known for a long history of safety violations and other regulatory violations and the FBI actually launch a criminal investigation regarding potential negligence regarding the management of the mine ( Source atch, 2012). It is…...
mlaWorks Cited
Source Watch. (2012). Upper Big Branch Mine Disaster. Retrieved from Source Watch: http://www.sourcewatch.org/index.php/Upper_Big_Branch_Mine_Disaster
Investopedia. (2011, December 30). 2011's Biggest Mergers and Acquisitions. Retrieved from Investopedia: http://www.investopedia.com/stock-analysis/2011/2011s-biggest-mergers-and-acquisitions-esrx-bhp-duk-txn-t-jnj-msft-wag1218.aspx#axzz2A4lUoQsa
Micorsoft. (2011, October 13). Microsoft Officially Welcomes Skype. Retrieved from News Center: http://www.microsoft.com/en-us/news/press/2011/oct11/10-13skypepr.aspx
Wollman, D. (2012, October 22). Microsoft announces Skype for Windows 8: full-screen calls, push notifications and People Hub integration. Retrieved from Engadget: http://www.engadget.com/2012/10/22/skype-for-windows-8/
1. Analyzing the Effect of a Global Economic Downturn on Sony Corporation's Key Metrics
2. Exploring the Impact of Technological Advances on Sony Corporation's Performance Metrics
3. Assessing the Consequences of Increased Competition in the Electronics Industry on Sony Corporation
4. Investigating the Influence of Currency Fluctuations on Sony Corporation's Financial Metrics
5. Examining the Effects of Supply Chain Disruptions on Sony Corporation's Key Performance Indicators
6. Evaluating the Impact of Changes in Consumer Preferences on Sony Corporation's Sales and Revenue
7. Simulation of Different Marketing Strategies and their Impact on Sony Corporation's Market Share
8. Analyzing the Effects of Government Regulations on Sony Corporation's Profitability
9. Exploring....
Here are some potential essay topics on corporate level strategies of Nestle:
1. Analyze and evaluate Nestle's diversification strategy. How has Nestle expanded its product portfolio over the years and how has this contributed to its overall growth and success?
2. Assess Nestle's international expansion strategies. How has Nestle entered new markets and expanded its global presence? What challenges has the company faced in pursuing a global strategy?
3. Examine Nestle's strategic alliances and partnerships. How has Nestle collaborated with other companies to strengthen its competitive position and drive growth? What benefits has Nestle derived from these strategic alliances?
4. Investigate Nestle's sustainability and....
1. The role of strategic partnerships in achieving competitive advantage
2. Exploring the impact of collaborative partnerships on organizational innovation
3. The effectiveness of different partnership models in facilitating strategic management
4. Analyzing the benefits and challenges of global strategic partnerships
5. Examining the role of trust and communication in successful strategic partnerships
6. The importance of aligning organizational goals in partnership reference models
7. Evaluating the influence of power dynamics in strategic partnership relationships
8. The role of technology in enhancing strategic partnership performance
9. Exploring the role of culture in successful strategic partnerships
10. Comparing and contrasting different partnership models in strategic management.
11. Investigating the impact of....
1. The Impact of Nike's Visible Branding and Marketing Strategies on its Organisational Culture
2. The Role of Nike's Employee Training and Development Programs in Shaping its Organisational Culture
3. The Influence of Nike's Leadership Style and Structure on its Organisational Culture
4. The Effect of Nike's Workplace Environment and Office Design on its Organisational Culture
5. The Importance of Diversity and Inclusion Initiatives in Shaping Nike's Organisational Culture
6. The Role of Nike's Corporate Social Responsibility Initiatives in Defining its Organisational Culture
7. The Impact of Nike's Communication and Collaboration Practices on its Organisational Culture
8. The Influence of Nike's Decision-making Processes and Innovation Strategies on....
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