Mergers and Acquisitions (M&A)

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Mergers and Acquisitions (M&A)

Possible problems after the merger

The second – is poor implementation reorganization, new job descriptions, unfamiliarity with the customers.

The first problem is cultural - the two organizations may have a different way of doing things.

People attitude

In relation to the board of the target company – they may be prepared to fight for their independence or they may be pleased (they would like to focus on their core activities)

People inside the target company will be worried about their jobs

Two figures

2. What it is worth to the company making the acquisition

1. What the company is worth to the current owners

What is involved in deciding on a merger or acquisition?

The next step is to analyze the potential target

They will look for a target company to merge with or buy

The initial idea will come from the board of directors

In what context M&A is used

It is used a lot in the context of investment banking, where advising on and organizing M&A activity is a very lucrative part of their business.

Definitions of M&A

An acquisition (or takeover) is when a larger company buys a smaller one, and the smaller company may not be hаppy because its identity will be lost

A merger is when two companies join together as equals to form one, and the process is mutually consensual