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Mergers and Acquisitions

Mergers and acquisitions are business strategies that deal with selling, buying, and combining of companies. Mergers occur when two or more companies are joined together. When one company buys another, either through friendly or hostile takeover, it is called acquisition.

593 Questions

How do employees react to mergers and acquisitions?

Employees experience and act in the following manners: * Uncertainties * Fear * Employees may start looking for other oppertunities outside the organisation bue to their fears and uncertainties. People cant afford to be without a job for very long. * Shrinkage may increase: Again due to the uncertainties and fears you may find that employy theft is on the increase. * Employees may become angry about the processes that was followed. * Unhappy employees will lead to a decline in production. But on the other hand, if the processes is handled correctly: * employees are invloved in the process * there is no hidden agenda's etc, the employees may still feel uncomfortable but you will control some of the employees reactions.

Mergers are beneficial for the us economy?

Some mergers are beneficial to the United States economy. However, when a merger reduces the amount of competition in an industry it isn't good for the economy.

What are examples of mergers by companies?

Companies often merge due to reasons such as cost savings, some examples of this are:

The recent merger of Continental Airlines and United Airlines to create United-Continental which is predicted to bring savings to the companies of $1 billion and will create a company with a combined revenue of $29 billion.

Other major mergers include:

Time Warner/AOL, Daimler Benz/Chrysler, Exxon-ExxonMobile. There is a huge number and they constantly occur but this answer should give you a few.

Do people who hold old monsanto stock now own pfizer stock?

yes, Monsanto MTC was merged with Upjohn Pharmacia which eventyally merged with Pfizer PFE. It is very complicated to track it, but I'll try to help..

My dates may be off, in my work I didn't need the exact dates but I know the range, exact dates are out on the web if you look for them.. my research goes back to 1991

Key Events;

-4 for 1 split sometime between 93 - 96

-MTC spins out Solutia in 9/97; New basis 91.45% to MTC, 8.55% to Solutia

-4/2000 MTC mergers with Upjohn Phamacia; MTC gets 1 for 1 of Pharmacia

-6/02; Pharmacia spins off new Monsanto (MON); new basis 93.9% to Pharm, 6.1% to MON

-4/03 Pharmacia mergers with PFE, Pharmacia holder get 1.4 shares for 1 of PFE... hope this helps

What is effect of corporate action on balance sheet?

The effect of corporate action on Balance sheet is:

Stock Split: The number of shares outstanding increases.

The face value of stock decreases(Equals Value divided by the stock split factor)

No Cash Comes to the company.

Retained Earnings and Share Capital remains the same

Bonus Issue: The number of shares outstanding increases.

The face value of shares remains same

No cash comes to the company

Share capital and paid up capital increases but retained earnings

decrease.

What are the Advantages of mergers and takeovers?

The main reason a company looks to merge or acquire another company is to increase shareholder value. This can be done for a number of reasons, as follows: * Synergy: This refers to the fact that the combined company can often reduce duplicate departments or operations, lowering the costs of the company relative to the same revenue stream, thus increasing profit. * Increased revenue/Increased Market Share: This motive assumes that the company will be absorbing a major competitor and thus increase its power (by capturing increased market share) to set prices. * Cross selling: For example, a bank buying a stock broker could then sell its banking products to the stock broker's customers, while the broker can sign up the bank's customers for brokerage accounts. Or, a manufacturer can acquire and sell complementary products. * Economies of Scale: For example, managerial economies such as the increased opportunity of managerial specialization. Another example are purchasing economies due to increased order size and associated bulk-buying discounts. * Taxes: A profitable company can buy a loss maker to use the target's loss as their advantage by reducing their tax liability. In the United States and many other countries, rules are in place to limit the ability of profitable companies to "shop" for loss making companies, limiting the tax motive of an acquiring company. * Geographical or other diversification: This is designed to smooth the earnings results of a company, which over the long term smoothens the stock price of a company, giving conservative investors more confidence in investing in the company. However, this does not always deliver value to shareholders (see below). * Resource transfer: resources are unevenly distributed across firms (Barney, 1991) and the interaction of target and acquiring firm resources can create value through either overcoming information asymmetry or by combining scarce resources. * Vertical integration: Vertical Integration occurs when an upstream and downstream firm merge (or one acquires the other). There are several reasons for this to occur. One reason is to internalise an externality problem. A common example is of such an externality is double marginalization. Double marginalization occurs when both the upstream and downstream firms have monopoly power, each firm reduces output from the competitive level to the monopoly level, creating two deadweight losses. By merging the vertically integrated firm can collect one deadweight loss by setting the upstram firm's output to the competitive level. This increases profits and consumer surplus. A merger that creates a vertically integrated firm can be profitable.

What is the difference between partnership and merger?

A partnership is a venture by two or more people. A merger is when the owners of two businesses agree to join their firms together to make one business

Is there any truth to a merger or purchase of Budget Truck by Penske?

It apears to be true. Penske is exploring their options to aquire Budget Truck Rental from Avis/Budget. The general feeling at Budget is that Penske is primarily intersted in the rolling stock and the franchise dealer network and that the exsistingudget work force would be eliminated. It apears to be true. Penske appears to be interested in aquiring Budget Truck Rental from Avis/Budget. The general feeling at Budget is that Penske is primarily interested in the rolling stock and certain franchise dealer locations. Other dealers and all Budget employees would be phased out.

What happens to your pension if company is taken over or bought?

If a company is taken over or bought, the employee with a pension has the right to ask management how the pension is going to work. If an employee has money tied up in an IRA, then the company can refund that money to start a new program or continue the program.

What company owns Chico's?

Chico's FAS, Inc. They own the brands Chico's, White House Black Market and Soma Intimates.

When did the La Salle Bank National Association become a part of Bank of America?

On April 23, 2007, an agreement was made to sell LaSalle Bank Corporation to Bank of America for $21 billion. Bank of America Corp officially took over LaSalle Bank Corp on October 1, 2007. The acquisition makes Bank of America the largest bank by deposits in both greater Chicago and Detroit; Bank of America previously had a minimal presence in Chicago and none in Michigan. The banks adopted the Bank of America name on Sunday, May 4, 2008.

The concept of competitive advantage is as important for non-profit organizations as it is for profit organizations Do you agree with this statement of not Explain with examples to justify your an?

The concept of competitve advantage is as important for non- profit orgnizations as it is for profit orgnizatios Do you agree with this statement or not? Explain with examples to justify your answer.

The concept of competitive advantage is as important for non-profit organizations as it is for profit organizations Do you agree or not Explain with examples to justify your answer?

I agree that competitive advantage is crucial for non-profit organizations, as it helps them effectively achieve their missions and secure resources. For example, a non-profit focused on environmental conservation might differentiate itself through unique community engagement strategies or specialized expertise in a particular ecosystem, attracting more donors and volunteers. Similarly, a healthcare non-profit could leverage innovative partnerships with local businesses to enhance its services and outreach, thereby increasing its impact in the community. Ultimately, a clear competitive advantage enables non-profits to stand out in a crowded landscape and fulfill their goals more effectively.

Concept of business?

The concept of the business is the idea that comprise of the basic information about the business. For example, the product or service, target market, demographics, unique selling proposition, competitors etc.

What does volatility mean in finance?

A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes, such as the CBOE Volatility Index, VIX.

What is the meaning of financial entity?

A financial entity is a legal/financial term. It refers to a legally created person as opposed to a natural person.

What is a real life example of a vertical merger?

A real life example of a vertical merger would be the merger of DoubleClick (a web advertising information company) with Google (the largest web search company). However, this could be seen as just an acquisition (Google paid shareholders $3.1 billion USD).