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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

What is the distinction in mergers and acquistitions?

The distinction in mergers and acquisitions means that the two words have different meanings. A merger is when a company merges or becomes part of another company. An acquisition is when a company out right buys another company.

A merger unites firms at different stages of related businesses?

A merger that unites firms at different stages of related businesses is known as a vertical merger. This type of merger typically involves a company acquiring another that operates at a different level of the supply chain, such as a manufacturer merging with a supplier or distributor. Vertical mergers can enhance efficiency, reduce costs, and improve supply chain management by streamlining operations and consolidating resources. Additionally, they can provide firms with greater control over the production process and access to new markets.

Is diagonal merger unites firms at different stages of related businesses?

No, a diagonal merger typically involves firms that operate in different but related industries, rather than at different stages of the same supply chain. It combines companies that have complementary products or services, allowing for diversification and enhanced market reach. In contrast, a vertical merger unites firms at different stages of production within the same industry.

Is Apple and Ipad an example of vertical merger?

Yes.. Because they both are in the same field. As per the defenitions the copanies in the same field join together is called vertical merger.

What dod series will provide IA requirements for acquisitions?

A. DoD 8560 Series

B. DoD 8570 Series

C. DoD 8580 Series

D. None of the above

How did the old hbc retain control over the new hbc after the merger with the nwc?

HBC kept control by controlling the trade routes, which brought a lot of money into the HBC.

What are the disadvantages of vertical merger?

Firstly, there are no disadvantages of vertical merger because I don't know what is that because there's no such thing!

TROLL!

What is a merger of a firm with a supplier?

A merger of a firm with a supplier, known as backward vertical integration, occurs when a company acquires or merges with a supplier to gain better control over its supply chain. This strategy can lead to cost savings, improved efficiency, and enhanced product quality by reducing dependency on external suppliers. By integrating operations, the firm can streamline production processes and potentially increase its competitive advantage in the market.

How does antitrust policy affect the nature of mergers?

Antitrust policy generally precludes the elimination of competition. For this reason, mergers are often with companies in allied but not directly related field.

How do conglomerates and vertical mergers differ frim horizontal mergers?

Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.

What is the term used to describe the benefits produced by a merger or acquisition?

The term used to describe the benefits produced by a merger or acquisition is "synergies." Synergies refer to the potential financial gain achieved when two companies combine, which can result from cost savings, increased revenue, improved efficiencies, or enhanced market reach. These benefits arise from the idea that the combined entity is more valuable and efficient than the two companies operating independently.

Why does the government carefully m onitor horizontal mergers?

Most governments will monitor horizontal mergers because there is a risk that they will reduce competition, leaving customers with less choice of where to buy from. In extreme cases, a lack of competition can lead to higher prices.

Horizontal mergers refer to mergers between companies that supply the same products or services to the same customer group. Vertical mergers by contrast refer to a company joining with one of its suppliers or customers.

The problem for regulators comes in deciding what market - the products, services and customers - should be considered. The definition of the market is often what is challenged in court when companies appeal against a regulator's decision.

The other problem for regulators is deciding how few companies in a market will cause limited competition. In countries like Australia, many markets effectively end up as duopolies, in other words with just two dominant players. This is because the size of the market is too small to economically support more than two large players; more players would mean that economies of scale are not being met

What is the difference between merger and demerger?

When two or more companies are merged with their assets and liabilities, they are called merger. Whereas when they are separated/detached from each other,they are called demerger.

What are the advantages of push pull boundary?

Push, or build to stock

- Advantage: lower lead time

- Disadvantage: higher inventory

Pull, or build to order:

- Advantage: lower inventory

- Disadvantage: higher lead time

Having a push-pull boundary is a hybrid approach. Operations prior to the boundary are pushing and operations after it are pulling.

- Advantage: Can trade lower lead times for lower inventory by moving boundary closer to last operation. Or vice versa.

Note that each component part in a product can have a different push-pull boundary.

- Manufacturing parts with expensive raw materials and/or high labor costs should be pulling more than pushing, to reduce cash tied up in inventory

- Manufacturing parts with long lead raw materials should be pushing more than pulling, so supplier's lead time doesn't affect your lead time to your customers.