4 2 Presentation Marketing Channel Analysis Assignment

Posted By Admin @ Mar 01, 2022

Tittle: Assignment on Merger and Acquisition

Type: assignment

Subject: Business




Merger and Acquisition

Keywords: mergers and acquisitions, search and matching, aggregate production, reallocation, business economy, financial performance, Liquidity ratio, banking sector, diversification,

Introduction of Merger and Acquisition

The basic purpose of the research about the implications of merger and acquisition in the business is to evaluate the get the outcomes of acquisition and merger in the accumulated business economy in the business world. The study of merger and acquisition is used to ascertain the link between the different aspects of the organization’s issue. While the merger or acquisition takes place between different organizations, it is considered that the benefits and the privileges are distributed according to the equal portion or in specific portion. The estimated model to use in acquisition are significantly distributed in a way that put aggregate impact on both the organization. The outcomes show a certain percentage to contribute to the consumption of total revenue of the business. Different sorting methods are used in generating the advantages related to merger and acquisition. The study is also concern with the allocations of the resources which are being used in the business for common benefits of the firms. It also discussed with the changing management of the business and taking hold of new management, which has to face different challenges to stable the economy of the firms. The purpose of the study is to establish the impact of mergers and acquisitions in the performance of the business. The economy has to face the issue to deal the policies with the improvement of the firm’s business condition (J. David, 2017).

There are several studies which are conducted on an implication of merger and acquisition in the research history. To find out about merger and acquisition, there should be knowledgeable about the meaning of merger and acquisition. Merger and acquisition (M&A) are referred as terms that are used in the consolidation of different organizations. The single term merger means the combination of two companies and built a new one in results, while the acquisition means that one company take hold of the other with authority to take all the decision about the company. M&A is considered as big aspects of the trade market. The cause of the merger and acquisition is the phenomenon that the one unit with different powers could do business activities more accurately as compared to in separated units. It could be possible in this way that companies could maximize the output of the business, which could evaluate different opportunities in the business. Merger and acquisition could take place by purchasing assets, purchasing share, exchange of shares and exchanging shares of shares (N. N. Brueller, Carmeli, & Markman, 2018).

While implicating the merger and acquisition in any business organization, there must be some reasons to combine the business in a single unit. The organization must be well-aware of the risk which is collaborated with the investment in the existing business with the competitive market. The business must have the ability to diversify the risk to limit the scope of the loss, which could be beneficial for the business. The management of the acquiring must be resilient to adopt the changing environment in the business.

The implication of the merger and acquisition is most likely to deal with the activities in the wealth effect of the business which acquiring the companies during the working on the methodology of the acquisition in the announcement of the merger of different business — the announcement of the different changes in the activities which are resulted in implication of merger and acquisition. Moreover, outcomes are measured by the actual and budgeted stock price of the shares, which are needed to be examined in the market, when the actual return of the merger and acquisition is post-event for the firm following the event and date, which is mentioned in the contract. When there is budgeted return in normal events it must be announced that merger and acquisition do not occur as it is not beneficial for the state of business. The study found that the average number of abnormal returns that are acquired by the shareholders which are important in numbers. After all the discussion about the implications of merger and acquisition it would be concluded that the shareholders must lose some portion of their revenue while the time of merger and acquisition (J. G. Lynch & Lind, 2002)