merger

Examples of merger in the following topics:

• Mergers and Acquisitions (M&As)

  • Exxon and Mobil officially signed an agreement and plan of merger on December 1,1998.
  • Mergers and Acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of different companies and similar entities that can help an enterprise grow rapidly.
  • Mergers and Acquisitions have, at times, failed to add as much value as initially imagined by the parties involved.
  • Mergers and Acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of different companies and similar entities that can help an enterprise grow rapidly.

• Consolidation Strategy

  • In business, consolidation refers to the mergers and acquisitions of many smaller companies into much larger ones for economic benefit.
  • In strategic management, it often refers to the mergers and acquisitions of many smaller companies into much larger ones.
  • This kind of action is more precisely referred to as a "merger of equals."
  • Not every merger with a new name is successful.
  • This diagram of bank mergers in the United States shows how extensive the consolidation of various companies has been.

• Reasons for Combining Businesses

  • Business combinations are referred to as mergers.
  • In practice, however, actual mergers of equals don't happen very often.
  • A merger can also be achieved independently of the corporate mechanics through various means - such as triangular merger, statutory merger, etc.
  • Every merger has specific reasons why the combining of the two companies is a good business decision.
  • Additional motives for a merger that may not add shareholder value include:

• The Role of an Advisor

  • The advisory group of an investment bank is primarily concerned with facilitating the mergers and acquisitions of businesses.
  • M&A stands for "mergers and acquisitions", which refers to the the buying, selling, dividing and combining of different firms.
  • Pricewaterhouse Cooper got it's name after the 1998 merger of Price Waterhouse and Coopers & Lybrand.

• M&A Trends

  • Mergers and acquisitions (M&A) are a significant aspect of modern strategy, particularly in the technology and pharmaceutical arenas.
  • The mergers and acquisitions by these five companies alone represents the acquisition of hundreds of business and hundreds of billions of dollars.
  • This is a list of M&A reasoning over time, starting with the horizontal mergers in the late 19th century and moving into the globalization movements in the 21st century.

• Monopolies, Mergers, and Restructuring

  • Mergers were prevalent, for example, in the oil, retail, and railroad industries, all of which were undergoing substantial change.
  • Deregulation and technological change helped spur a series of mergers in the telecommunications industry as well.
  • The $81,380 million merger raised concerns among antitrust officials, even though the Federal Trade Commission (FTC) unanimously approved the consolidation.
  • Just as the merger wave of the 1960s and 1970s led to series of corporate reorganizations and divestitures, the most recent round of mergers also was accompanied by corporate efforts to restructure their operations.
  • This was true despite layoffs following mergers and restructurings, as well as the sizable growth in the number and employment of small firms.

• Federal Efforts to Control Monopoly

  • The act outlawed price discrimination that gave certain buyers an advantage over others; forbade agreements in which manufacturers sell only to dealers who agree not to sell a rival manufacturer's products; and prohibited some types of mergers and other acts that could decrease competition.
  • The Federal Trade Commission and the Antitrust Division of the Justice Department watch for potential monopolies or act to prevent mergers that threaten to reduce competition so severely that consumers could suffer.
  • The court ruled that if a merger would cause a company to control an undue share of the market, and if there was no evidence the merger would not be harmful, then the merger could not take place.
  • In those markets, merger of two substantial firms would be anti-competitive, the court said.
  • The planned merger was dropped.

• Other Topics in M&A

  • Despite the goal of value creation and synergy, results from mergers and acquisitions are often disappointing compared with results that are predicted or expected.
  • The turnover in target companies has been found to be double the turnover experienced in non-merged firms for the 10 years following the merger.
  • A form of corporate cooperation lying between a merger or acquisition and internal growth is called a corporate alliance, or strategic alliance.
  • When raising funds for a merger or acquisition, firms may not seek funds from public offerings - either out of necessity or by choice.
  • Divestment of certain parts of a company can occur when required by the Federal Trade Commission before a merger with another firm is approved.

• Valuing the Target and Setting the Price

  • In order to prepare an appropriate bid in the mergers and acquisition process, the buyer must be able to accurately value the target company.
  • Due diligence can be defined as the examination of a potential target for merger, acquisition, privatization, or a similar corporate finance transaction– normally by a buyer.
  • This is in order to reduce the number of failed mergers and acquisitions.

• Types of Transactions

  • Transactions can be mergers or acquisitions, made with cash or stock, and they can be friendly or hostile.
  • Such transactions are usually termed acquisitions rather than mergers because the shareholders of the target company are removed from the picture and the target comes under the (indirect) control of the bidder's shareholders.
  • In the aftermath of a merger, there will be accounting issues to consider.
  • Pictured is a plane belonging to United Airlines, one of the world's largest carriers, fresh off a 2010 merger with Continental Airlines.
  • Choose the best strategy and method for completing a merger or acquisition