Mergers and Acquisitions Essay Example | Topics and Well Written Essays - 5000 words

Mergers and Acquisitions - Essay Example A study conducted by UNCTAD (2006) shows that 17 percent of the FDI in the world comprise South-North and South-South flows and of this the cross-border acquisitions occupy a significant proportion. This project would look into the cross border acquisitions with an insight into the reasons driving the acquisitions and influential factors impacting such acquisitions. Factors motivating cross border acquisition Various theories have been developed that explain the significance of the mergers and acquisitions. According to Efficiency theories the main motive behind such deals is to exploit the benefits arising out of synergies or economies of scale. Market power theories highlight that acquisitions lead to oligopoly benefits. Agency theories state that the acquisition and acquisition deals mitigate agency problems like removing the inefficient managerial staff. This theory also states that it may also give rise to agency problems such as imprudent managerial decisions solely guided by t he motive of empire building. Besides this the acquisition deals are also guided by the advantages arising from the ‘benefits of diversification’. Though there is no single theory on mergers and acquisitions however these theories have garnered empirical support. Studies have shown that the shareholders of the target firm benefit the most in such deals whereas the shareholders of the bidder firm do not derive any immediate benefit from the deal. The abnormal return that that the bidders can enjoy is either slightly negative or zero. The combined return of the bidder-target firm is found to be universally positive indicating that the acquisition deals lead to value creation. It has also been seen that the stock price of the target firms’ exhibit higher returns in the case of cash offers as compared to the stock offers; hostile takeovers as compared to friendly takeovers; and multiple bidder as compared to contests by single bidders (Gregoriou & Neuhauser, 2007, p. 1). The success associated with the M&A deals has eluded many corporations. Marks & Mirvis (1998) state that the failure rates of such deals is around 50 to 75 percent. Despite the uncertainties associated with the deal the acquisition and acquisition deals are on the rise. The various benefits arising out of the deal include managerial synergies, cost synergies, market synergies etc. The sources of synergies include consolidated purchases, production, administration, marketing, market power, cross-selling, acquisition of technical expertise, patent, knowhow of the target, market expansion etc. In the horizontal acquisitions that involve integration of two companies belonging to the same sector the main motive is gaining market share of the target firm. This happens in the case of matured industries where the opportunities of growth are nearly exhausted, presence of excess capacity etc. Horizontal acquisitions result in enhanced revenue, savings in cost and better growth opportunit ies (Hitchner, 2006, p.106). The acquiring firm also gets a control over the customer base of the target firm thereby raising the total revenue base of the bidder firm.

Assignment Example | Topics and Well Written Essays - 500 words - 237

Assignment Example She grows up experiencing joy with Nel Wright, who is her best friend. The two are inseparable friends, even though their backgrounds and personality are different. Sula is an independent character who has minimal commitments. She got the independent characteristic from her mother, who acted in a similar manner. Nel Wright is a character who is the opposite of Sula. Her physical characteristic is plain and also light colored. Her physical appearance contrasts sharply to the black and mysterious features of Sula. The Bottom society considers Nel as a girl of good character and morals, because of her obedient and quite nature. The family background of Nel is good, and it is respected in the society. Nel desires individuality, and this is what drives her to seek friendship with the person like Sula, who has the desired qualities of independence, strength and bravery. Helene Wright is the mother of Nel. She was the daughter of Rochelle, who worked as a prostitute in Orleans Creole. Helen was raised by her very religious grandmother, called Cecile. Hellen was married off to Wiley Wright when she was aged 16 years. Eva is the grandmother of Sula, who is illustrated throughout the novel. She is very instrumental in determining the direction of Sula, and in the development of the plot of the novel. She is a very colorful character in the novel. She is very hopeful, even though her husband left her with children at a young age. Eva cut off her leg, with the intention of obtaining insurance money. The move shows love and determination, because the money was used to take care of her family. Eva is a compassionate character, because she turned her house to a boarding facility that accommodates diverse individuals, for instance, the â€Å"dewey boys†. The informally adopted Deweys were inseparable, even though they are physically different. BoyBoy Peace is illustrated as a reckless character; this is because he abandoned her young Assignment Example | Topics and Well Written Essays - 500 words - 163 Assignment Example Action research is an alternative approach to change in an organization. It requires the change facilitators with the ability to give specific attention to the personal and collective processes of action and reflection. Using this approach will, therefore, requires the change agents in Arc Limit Cinema to be both leaders and researchers in the process of finding the opportunities for change. In this case, research on the issues related to the market, internal and external factors promoting of inhibiting change in the organization should be done (Cameron & Green 2012, p. 132). In Lewin’s model for change, there are three identified phases of effective change process. Unfreezing, change process and refreezing. This approach will require the change agent at Arc Limit Cinema to recognize the need to change and to be uncomfortable with the present situation. This may be concerning the operations, production, customer service or marketing. The identified flaws then lead to the change implementation, and after the change is done, the organization need to be re-stabilized through refreezing (Cameron & Green 2012, p. 132). This model, therefore, implies that for a change to occur in Arc Light, the inputs that the organization, its initial environment in terms of partnerships, markets and the general reputation of the organization must be harnessed to give a strategy that is compatible with the organizations structures. The effects of this are positive change that will give results that will improve the organizations situation. In order to understand the performance of an organization, this model recommends first to understand the basic elements of performance. These are inputs, strategy, output and processes. In the USC strategy, these basic elements can be identified as: Output. The strategy expects the outputs to be a success of the students and the fulfilment of their ambitions. This will also lead to a feeling of satisfaction of the