Mergers and Acquisitions

Essay specific features

 

Issue:

Business

 

Written by:

Kenneth M

 

Date added:

August 11, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1108

 

Was viewed:

6779 times

 

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Essay content:

The firm whose shares continue to exist is generally referred to as the acquiring firm while the other is the target firm. Except for synergies, the post-merger value of the two firms is equal to the pre-merger value (Brealey, Myers, & Marcus, 2007, 598). The target firm’s shareholders, however, often benefit because they are paid a premium for their shares...
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“A merger adds value only if synergies, better management, or other changes make the two firms worth more together than apart” (Brealey, Myers, & Marcus, 2007, 592). Synergies are revenue enhancements and cost savings gained through the merger/acquisition. Many merger decisions are made without regard to differences in culture between firms, especially in international mergers...
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