Introduction Merger and acquisition both are strategic decision and an aspect of corporate strategy. One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies - at least, that's the reasoning behind merger and acquisition. Most histories of merger and acquisition begin in the late
Words: 1924 - Pages: 8
Review of Too Big To Fail - In this movie following Treasury Secretary through the 2008 financial crisis as it morphed into a national and international crisis, the mix of staged and true-to-life news recaps was quite compelling. Although I personally know the turn of events (I have several investments that saw the effects of the 2008 financial crisis) I found it unique to start the movie with true news clips which brought great validity to the story line. I personally was constantly questioning
Words: 844 - Pages: 4
Change and Culture Case Study 1 The struggling economy, the emergence of new technology and the government’s healthcare reform is pushing hospitals to seek refuge in another resulting in a merger. A merger is the consolidation of two establishments into a single legal entity (Hayford, 2012). In the health care industry, mergers are rising in numbers. Mergers transpire due to a variety of reasons; to increase in size to gain better negotiation power with managed care providers who tend to bypass
Words: 1662 - Pages: 7
“Squeeze Out,” ”Freeze Out” or “Two Tier” Mergers A squeeze out merger (sometimes called a freeze out merger or two tier merger) is a strategic merger transaction that is accomplished for the purpose of eliminating unwanted minority shareholders. A squeeze out merger can be to eliminate one or more minority shareholders. It is often used after a tender offer. If the tender offeror (the “Acquiror”) becomes a majority shareholder, but does not manage to acquire 100% of the outstanding shares, the
Words: 436 - Pages: 2
------------------------------------------------- Greiner’s Sixth Phase ------------------------------------------------- Greiner’s Sixth Phase Organizational Design & Change Management Organizational Design & Change Management Table of Contents Greiner’s Terminal Stage 2 Internal & External Forces Driving the Need for Organizational Change 3 External Forces 3 Globalization 3 Technological Change 3 Internal Forces 4 Sixth Phase: Efficiency Phase 4 Implications
Words: 2872 - Pages: 12
able to limit their competition. Therefore, this will increase the business’s revenue and this gives them a bigger control, which is why a lot of companies look for other companies within their manufacturing. According to “Benefits of a Merger or Acquisition” (2013), by obtaining a business in the same manufacturing would get more market shares, and the business would obtain excellence team that already has the information of the business. Going public will
Words: 1080 - Pages: 5
Business Monitor International (2010) quoted that “Alcatel acquired Lucent for US$13.4bn with hopes of facing down the increasing competition in the market from ZTE and Huawei as well as larger rivals that had also gained scale from mergers and acquisitions” If Alcatel and Lucent were to stand alone it would not be able to compete with new giant companies such as ZTE and Huawei. They needed each other in order to survive in the industry in 2006, something they were not worried about in 2001. As
Words: 353 - Pages: 2
When we talk about acquisitions or takeovers, we are talking about a number of different transactions. These transactions can range from one firm merging with another firm to create a new firm to managers of a firm acquiring the firm from its stockholders and creating a private firm. We begin this section by looking at the different forms taken by takeovers. 1. TAKEOVER A corporate action where an acquiring company makes a bid for an acquire. If the target company is publicly traded, the acquiring
Words: 2649 - Pages: 11
retrieval specialty. British software company, Autonomy, was identified as a good candidate and in August 2011 HP published their intent to acquire it. Apotheker was not a popular HP CEO and was criticized about his famous failure with the Palm acquisition which cost USD 1.5 billion. He persuaded HP Board of Directors to proceed with a merger and the result was a disaster: USD 8 billion write down. History of deal. HP had a string of high level executive changes that led to a hasty decision to
Words: 2311 - Pages: 10
will weight the pros and cons of each option by showing the strengths, weaknesses, opportunities, and threats created with each option. Strengths of an IPO, Acquisition and Merger The strengths of an IPO in a hospital would be to raise more capital for PFCH to use for their various corporate purposes such as working capital, acquisitions, and marketing, to name a few. With PFCH taking advantage of an IPO we can take advantage of new larger opportunities that can start building toward incorporation
Words: 1650 - Pages: 7
