Running Head: MERGER

Merger

Introduction There are certain organizations around the world which get engaged in the activities regarding merger. The health care organizations also get engaged in merger with other health care organizations. In the present paper, discussion shall be made regarding merger in health care organizations. There are certain financial drivers which are required to be considered by the health care organizations to move forward with merger. The financial planning and the success of the merger are to be taken into consideration by considering the financial statements of the organization after the merger has been carried out by the organizations.
Financial Drivers Causing Merger There are three financial drivers which cause mergers within the health care organizations. The first financial driver causing merger is healthy corporate balance sheets. The second financial driver is low interest rates and inexpensive refinancing opportunities. The third financial driver is marginal growth of the organization (Buckley & Ghauri, 2002). All these financial drivers work in a positive manner for promoting mergers within the organization. In relation to merger, the organizations look at the potential health corporate balance sheets. In relation to the potential healthy balance sheets, the organizations look to get merged with another organization which has huge numbers in the balance sheet so that, the size of the balance sheet after merger could grow. Regarding the low interest rates and inexpensive refinancing opportunities, the organizations are in the position to make sure that, they have more finance available to them without having to take from the bank as the merged organization is likely to have higher level of funds. Regarding the marginal growth, the organizations will look at the fact that,