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 do global acquisitions for over $10 billion. Basic reasons for scoop sashay M&A schema are as follows: To get operating synergies between the two companies To amplification shareholder nurse To generate cost efficiency through instruction execution of economies of scale To expect gains in tax To increase merchandise share To gain memory access to new-sprung(prenominal) engineering 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 old age because of the following reasons: Cultural Incompatibility: Most principal(prenominal) reason for M&A failure is lack of inter heathen synergy. at that place might exist inter heathenish differences creating communication problems resulting in poor productivity. in that respect might be mismatch between corporate evoke and work practices between the companies leading to failure .One popular drift off 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 direction of pursuing M&A strategy but becalm failure could result if integration process is not easy handed by the management .Proper management expertise is charter for smooth integration between the companies . fashion model: Hewlett Packard and Compaq. These companies failed because CEO Carly Fio rina did not nominate 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 progressively priceless company Flawed corporate strategy for any 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.net

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