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 make global acquisitions for over $10 billion. Basic reasons for scoop snap M&A outline are as follows: To achieve operating synergies between the two companies To amplification shareholder nurse To generate cost efficiency through instruction instruction execution of economies of scale To expect gains in tax To increase merchandise share To gain memory access to raw applied science 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. thither might exist inter heathenish differences creating communication problems resulting in poor prod uctivity. thither might be mismatch between corporate heighten and work practices between the companies leading to failure .One popular billet is Diamler Chrystler. These companies could non obtain desired synergy due to cultural clashes between the companies.

Lack of draw awayment expertise to implement the integrating process: Companies may be in the right pleader of pursuing M&A strategy but still failure could result if integration process is not considerably handed by the management .Proper management expertise is take for smooth integration between the companies . congresswoman: Hewlett Packard and Compaq. These co mpanies failed because CEO Carly Fiorina did! not bind 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 more and more priceless company Flawed corporate strategy for each 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: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay