CASES IN FINANCE ARTICLE 2022

Running head: CASES IN FINANCE
Cases in Finance
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CASES IN FINANCE1
Table of Contents
Introduction:...............................................................................................................................2
Merger and acquisition motives:................................................................................................2
Two recent mergers and their motives:......................................................................................3
Conclusion:................................................................................................................................4
References:.................................................................................................................................6

CASES IN FINANCE2
Introduction:
Internationally, mergers and acquisition has occupied a higher principal in the
business approach because of its apparent paybacks. A merger is believed to have happened
when two businesses generally organizations is combined to turn into a new firm. There is
always a driving force which has the solid wish for mergers and acquisitions. These are
normally recognized as the reasons in merger and acquisitions works (Green 2016).
Regularly, the motivating force mentioned is the collaboration understanding while the others
consist of the new marketplace access, transmission of knowledge and administrative
learning. The primary purpose of this study is to understand the two recent merger decision
taken by Powernet and Evolve IT, TPP and Vodafone Australia.
Merger and acquisition motives:
Growth is regarded necessary for survival of the company. Companies that are
merging can achieve growth with the help of two means namely the organic and inorganic
means. Mergers or acquisitions are regarded as the instances of attaining the inorganic
development. Apart from the other things, mergers come with the admission to amenities
trademarks, brands, technology and personnel.
Apart from the growth, diversification is another motive of mergers. Diversifications
in mergers and acquisitions is regarded as more noticeable in multinational mergers where
the eggs of the company are kept in different basket rather than keeping it in one areas of
goods and service. As stated by Nelson (2018) the likelihood of commercial failure of the two
individual companies is higher than in case of the multinational merger of two. The main
motive of divergence is to facilitate essential organization, marketing expertise and
technicality that would lead to rise in the market share. Every type of mergers provides
certain kind of risk reduction. Vertical integration helps in reducing risks by implementing