DBA Comprehenive Examination Research Paper Example | Topics and Well Written Essays - 11000 words

DBA Comprehenive Examination - Research Paper suitAccording to Jensen & Ruback (1983) amalgamations and acquisitions benefit companies as it provides synergy, tax saving, sh areholder wealth maximization and signaling. Draper & Paudyal (2008) state unifyrs and acquisitions have been ripe to economies as the production touchs higher efficiency and has improved output. The economies achieved the ability to have improved bargaining power with the supplier and customer imputable to mergers and acquisitions. Mergers provide the companies to get tax savings. Mergers and Acquisitions According to Elebourne & Rambarran (2004), the ferment of merger refers to the make for where one company is corporate with another, and acquisition refers to the process when the company acquires another company. The merger process green goddess be horizontal, upright piano or conglomerate. As per Stigler (1950), horizontal mergers are achieved by merging the products and services. Horizontal merger i s used in the way that the share of the company increases in the market and it was cat valium during the onset of terra firma War I, when the stock market crashed in 1903-1904. Two firms are merged in a vertical manner when they are merged through the value chain. Sudarsanam (2003) defines conglomerate merger as a common M & A method where the companies from different industries come together. All the three types of merger systems require the companies to merge in three ways 1. The revenues of the companies should be merged to achieve a high revenue generating company. 2. The expenses of the twain companies should merge to achieve a low expense operation. 3. The terms of capital of the two companies should be unite which pass on reduce the overall cost of capital. The cost saving is archived through the removal of repetitive process in the two companies for which the merger is required at various level. Integration can happen in full functional area of the companies for exampl e - human resource, accounting, information technology, marketing, finance and operations. The new company will be working on best practices of the two companies and certain key factors will be merged together to have a modern age merger and acquisition. Minimal merge will be adopted by personnel and it will involve reducing redundancies. The best ways of mergers are when the two companies come together to exploit the best of other. This method is called positioning and it happens when the two companies position by fetching advantage of the trends in the market. Gap filing refers to the condition when the two companies have major weaknesses, which is reduced due to the merger. The company having strength becomes an advantage for the other company and both the companies are benefited. Mergers can happen for moving in reasons for example in bargain purchases where the company can be acquired at a low cost and this helps both the companies. Mergers can also provide the method of dive rsification which is needed for improving the earnings and to achieve higher opportunities and growth in business. The companies can get further growth through mergers and there are certain mergers which can provide short term growth to the company. The acquisition of two companies should be pollyannaish and bad decisions should be eliminated from the processes of merger and acquisition. Three specific examples of challenges of major challenges faced by the companies during M & A in the last five years are 1. Merging