MERGERS AND ACQUISITIONS LITERATURE REVIEW LUKE WALTON Table of Contents Abstract 3 Introduction 3 Background and motivation 3 Objective or aim of this literature review 4 Findings from current available literature 4 Issues from current research 5 Contribution to current literature and stakeholders 5 Section One 6 Motivation of M&A’s 6 Synergy 6 Agency theory 7 Hubris 7 Relationship between motives and financing 8 Section Two 9 Payment methods 9 Financing hierarchy
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Virtual Organization: Riordan Manufacturing Learning Team B August 3, 2013 FIN370 Prof. Putnam, Richard There are many factors of strength that can be found in a company who’s going public, as well as the company understands that with going public, their real capital can be created. This capital can allow more money to go towards research and development, pay for current capital expenditures, or even help pay off existing debts (Investopedia, 2009). When an organization is publicly traded
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MANAGING CULTURAL INTEGRATION IN CROSS-BORDER MERGERS AND ACQUISITIONS Daniel R. Denison, Bryan Adkins and Ashley M. Guidroz ABSTRACT Cross-border M&A has become one of the leading approaches for firms to gain access to global markets. Yet there has been little progress in the research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg
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(RCP), located in the United States to acquire Technical Concepts located in the Netherlands. The other point of discussion will be the challenges faced by the manger of Technical concept to create a smooth merger and create an environment of cooperation within the organizations. The merger and acquisition is to expand and continue to create a strong stand in the market place. As the manager of Technical Concepts, I have challenged to implement the changes necessary to make the acquisition process
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Valley Vista Drive #150, Diamond Bar, CA 91765. Contact: fikre_y@yahoo.com Abstract The last decade demonstrated decreased revenue and higher value of development costs, which led the automobile industry to engage in domestic and international mergers and acquisition (M&A). This case analyis examines one of the largest M&As in the Korean automobile industry in recent years, the acquisition of Kia Motors (Kia) by Hyundai Motors (Hyundai). The case study briefly analyses the conditions of
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3. Examine the organizational structure that has resulted from the merger or acquisition. Instagram was founded in 2010, by Kevin Systrom and Mike Krieger. It only had just a handful of employees (13 employees) supporting its popular photo sharing application (8). After Facebook purchased Instagram, it has decided to keep the Instagram's photo sharing service managed independently. This is contrary to what Facebook did with its previous acquisitions. After acquisition of a company, Facebook tend
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The M&A Sales Process FINA 6222: Mergers and Acquisitions Agenda Auction Process Overview Organization and Preparation First Round Second Round Negotiations and Closing • Stakeholders • Broad vs. Targeted Processes • Valuation and Due Diligence • Marketing Material and Confidentiality Agreement Preparation • First Buyer Contact • Initial Bids and Buyer Selection • Management Presentations and Data Room • Final Bids • Evaluate Bids and Select Winning Bidder • Financing and Approvals
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Introduction Currently, Mergers and Acquisition strategy has been significant growth in term of amount and size of organization (Hitt, Harrison, and Ireland, 2001). Since 1980s, the total value of M&A is approximately 1.3 million million dollar and has a huge of increasing amount more than 11 million million dollar in 1990s. The important reason most of companies do merger and acquisition is to empower in market, more opportunities to access not enough/less own resource of company
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Section A: International Finance Introduction Merger is a combination of two or more companies, with assets and liabilities of the selling firm(s) absorbed by the buying firms (Buckley & Ghauri, 2002). The buying firm may be a considerably different organization after the merger, but retains its original identity (Scott, 2003). An acquisition typically has one company, the buyer, that purchases the assets or shares of another, the seller, with the payment being cash/ securities or other assets that
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the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion. The merger I choose to research was the acquisition of Pixar by Disney. The merger between Disney and Pixar was a very successful one. They worked together in the past and their contract was running out after the release of Cars. This was the perfect opportunity and sensible move for these two companies to merge. The merger would allow the companies to
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