Mergers and acquisitions should be used to amplify strategies and growth. This business deal should facilitate the right combination of 4P’s-People, Processes, Product and Presence. The merged entity has to coordinate and deal with the 4P’s very efficiently and effectively. It has to cater to a more diversified and huger customer-supplier base, synergies of prices and costs, a wider range of products and services, and finally increase its visibility through tapping the right market. There has been a steady increase in the number of M&A transactions, nationally and globally due to various drivers like increasing visibility through establishing brands, decrease tax liabilities, jettison competition, revitalise loss making firms and corporations
This document presented an argument in support of the merger and an argument opposing the merger. References Kaur, T. (2014). VALUE CREATION THROUGH MERGERS AND ACQUISITIONS: EVIDENCE FROM EXISTING EMPIRICAL LITERATURE. International Journal of Trade & Global Business Perspectives, 3(2), 907-917. Retrieved from http://search.proquest.com/docview/1649002542?accountid=144790 Bertini, M., & Koenigsberg, O.
Mergers and acquisitions are basically associated with the concept of buying, selling or combining different companies for the purpose of expansion and growth for the companies. As we all know there are two ways we can acquire a target- either by cash or by stock or a combination of both. Well, transfers of ownership by cash are very straight forward and clear for the two parties involved in this transaction. While payment using stock options will be given to the acquired company at a ratio equivalent to the amount they are being acquired
TIMEX Group’s President and Chief Executive Officer (CEO) Tobias Reiss-Schmidt, together with Montrichard Group’s CEO Remi Chabrat, sealed the deal on November 3, 2017, at Middlebury in Connecticut, USA. The deal allows TIMEX to utilize FINS to optimize their supply chain for selected brands and to provide an end-to-end optimization process of creating a demand-driven supply chain solution that cut costs, simplifies procurement of products, and reduces the time to market. Another inclusion in the deal is for Montrichard to do the outsourcing of watch assembly to TIMEX’s facility for up to five million watches per year. At the end of November 2017, the first made-to-order production using FINS has been successfully readied out for use. The sales teams of certain TIMEX’s divisions are expected to utilize the FINS cloud-based web interface starting early January 2018 and is predicted to cater production orders ranging from a few pieces to several thousand or more.
With some plant retirements expected, “we’re going to have to replace those with something and of course nuclear is an option that is more feasible for a company this size.” Conclusion: Although mergers and acquisitions are used as ways for fast growth for a company however, given the aforementioned unsuccessful examples they may turn out to be a lethal experience. Thus, a complete and thorough analysis of factors such as economies of scale, complementary resources, Industry Consolidation, growth etc. has to be conducted in order to at least account for the accompanied risks that come with such a process. On the other side of the fence, a well analyzed study of mergers or acquisitions before actually stepping into the process may seriously pay off and lead to a very successful and smooth experience for both companies and can result in a lot of rewarding financial, cultural and social benefits for the involved
selling firms are absorbed by the buying firm” clearly gives the most simple definition of what truly merger and acquisitions is, with an attempt of defining mergers I would briefly state the consistently discussed types of mergers for which are: Merger and Acquisition are classified into four types which can be explained below: • Horizontal • Vertical • Conglomerate and • Concentric mergers Horizontal Merger: This is a type of merger where a competing firm within the same industry (any by implication similar product) and same level of operation. The principal objective of horizontal merger is expansionary motive. Firms in the same line of business compete with each other for share of the market. One good example of horizontal acquisition is the acquisition as example, Standard Trust Bank merged with United Bank for Africa Plc. and Continental Trust Bank because they share the same resource.
Acquisition in business is related to how a company obtains technologies needed for its businesses. The acquisition can be achieved internally through R&D process or externally through external collaboration such as purchasing, outsourcing, licensing, alliances and M&A. in this essay, I will be discussing the different types of acquisitions adopted by google for its technology acquisition and development and the strengths and weaknesses of such strategy. I will also discuss how innovation is linked to acquisition. At the end of the essay, I will go through the keys to success in planning for external collaboration and are the reasons that can make such collaboration fails.
This is triple the number of supplier as compared to their Japanese competitors who typically had about 1000 suppliers. (Morrissey & Tuttle, 2011) Therefore, Xerox is using in it’s strive for TQM is to reduce its supplier base. Xerox has gone from individual suppliers for each of the diverse assembling offices to a combined gathering of suppliers for the majority of the assembling offices. This has radically cut the measure of suppliers required which expands responsibility of the suppliers to get the materials to Xerox on time and it diminishes some overhead costs as a result of transportation decreases and economies of scale rebates. There is a diminished measure of individuals required in supervising the ordering process from the suppliers which takes into account a decrease in positions and to a lesser degree a chance for mistake.
Narrowly defined, a joint venture occurs when two or more firms pool a portion of their resources, within a common legal organization. Conceptually, a joint venture is a selection among alternative models by which two or more firms can transact. Thus a theory of joint ventures must explain why this particular mode of transacting is chosen over such alternatives as acquisition, supply contract, licensing or spot market purchases. Three theoretical approaches in order to explain the motivation and choice of joint ventures. • Transaction cost theory, Williamson (1975, 1981) states that firms choice on how to transact is based on minimizing the sum of operation and transaction cost.
John Crane Flexibox is one of the leading companies in the manufacturing of mechanical seals and power transmission technology for rotating equipment. The parent company of Flexibox has recently been taken over by TI Group Plc. The objective behind this acquisition is to make the organisation best in their chosen market in terms of reputation, quality and market share. This acquisition led the John Crane division to go through many changes, especially on the staff of the company. Christine Williamson the HR manager, who also holds the position on board of directors, is struggling to improvise and enhance the role of HR from simple personnel management to HR strategic management in the new setup.