linda 1111 - Strategic management Mergers and acquisitions in strategic management Executive summary Mergers and acquisitions in the real life

linda 1111 - Strategic management Mergers and acquisitions...

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Strategic managementMergers and acquisitions in strategic management Executive summaryMergers and acquisitions in the real life situations in the world of business tend to cause vigorousactivities that leads heavy transactions that involves a lot of billions of dollars being pumped in thebusiness. As such a serious business developer would therefore need to take into considerations somecritical consequences before rushing into conclusion. It is thus prudent for a financially stable enterpriseto weigh the possible outcome first. If the disadvantages outweigh the advantages, then the activity mayresult into financial sabotage and they may need to reconsider the option before making any solutions sothat the financial benefit is realized at the end. However if the otherwise is taken it may lead to diverserepercussions that may damage the image of the business and thus affecting the profit that was ought tobe realized and thus the business may be closed at long run. So the management need well plannedmeasures before making any decisions. By carefully drafting regulations to be adhered to in beforeexecuting the merging and acquisition process the management may be able to identify any risk relatedissues, product standard related issues, legal issues and above all ensuring that the aims, goals andobjectives of the business are followed.Therefore we can define mergers and acquisition as the part in finance and also in strategicmanagement that entails combination or joining of other companies. A target is a company that hascollapsed and thus it’s under considerations and its assets and capital are frozen and the debtors paidfirst before the shareholders. During mergers two companies combine effort and join to form one newformidable business, branded and given a new name. There are situations in which the joiningcompanies have the same business structure and also the size and thus the terminology merger ofequals is used. Acquisitions on the other hand refers situation in which a larger company buys anotherorganisations relatively smaller than the parent company and is therefore incorporated and wouldthence operates under the parent organisation or may run as a subsidiary.Before a company goes into mergers and acquisition it may be able to evaluate some of the pre-assessment of legal compliance , the transactions before and after and also the pre-existing culturalaspect of the organization that may exist in the standards of the product, the operational features,measurable output of the products and this should be utmost faith. Implying that, all the usefulinformation should be sourced before making any decisions. The company also needs to take intoconsiderations the assets of the company, regulations, and target products. after which, after the mergerprocess there are post-acquisition of company and this includes, the way forward to integrate theacquired organization with the parent company, applications and platforms and also what is to be

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