ngo anh nguyet IE098

ngo anh nguyet IE098 - 06071360 IE 098 Assignment What...

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06071360 IE 098 Assignment What problems that two companies in merger way encounter? Suggested solutions. In the world today, many companies are very successful in their businesses and a large number of companies are increasingly expanding their businesses with other oversea companies. They always associate together to be highly efficient and profitable in business. However, many difficulities would be encountered which can be pop-up happening in their business. The association between firms is called merger. According to Wikipedia, a free encyclopedia, a merger in business or economics is a combination of two companies into on large company. Such actions are commonly voluntary and involved stock swap or cash payment to the target. Many firms have found themselves involved in merger in order to reduce costs, improve service, increase market advantage and reduce variation in demand. Mergers are seen not only to create opportunities, but a new set of problems as well. It might result in a loss of value to the merger firms. These problems may stem from the differences between two merger firms. The first problem is that merger firms may face the change in leadership. Each merger has its pre- merger negotiation in which would cause changes in board of members and executives in some degrees. The condition may turn to a very different side and it will take along time to get familiar to. When leadership changes, the decision-making style would not be the same and some plans could not be on scheduled tracks. Thus, the question of whether the two firms should engage one
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This note was uploaded on 07/30/2011 for the course FIN 202 taught by Professor Hung during the Spring '11 term at Keuka.

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ngo anh nguyet IE098 - 06071360 IE 098 Assignment What...

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