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Critical Analysis of the Settlement Theories

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Added on  2020-03-23

Critical Analysis of the Settlement Theories

   Added on 2020-03-23

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Running head: MERGERS AND ACQUISITIONSMergers and acquisitionsName of the student:Name of the university:Author note:
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1MERGERS AND ACQUISITIONSTable of contentsInsight into mergers and acquisitions..............................................................................................2Conditions for mergers and acquisitions.........................................................................................2Types of mergers and acquisitions..................................................................................................29 reasons why mergers and acquisitions take place.........................................................................3Principles of merger and acquisition...............................................................................................3Stages of mergers and acquisitions..................................................................................................4Reasons for failure of merger and acquisition.................................................................................6Chapter summaries..........................................................................................................................6Chapter 16....................................................................................................................................6Chapter 17....................................................................................................................................7Chapter 18....................................................................................................................................8Deeper insight into chapter 16.........................................................................................................8Chapter: 17.....................................................................................................................................11Critical analysis of the settlement theories................................................................................12Court proceedings for settlement of bankruptcy.......................................................................13Effectiveness of merging...........................................................................................................14Chapter: 18.....................................................................................................................................15Global market entry strategies...................................................................................................15
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2MERGERS AND ACQUISITIONSInfluencing factors for cross border merger and acquisition.....................................................16Conclusion.....................................................................................................................................18References......................................................................................................................................19
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3MERGERS AND ACQUISITIONSInsight into mergers and acquisitionsPartnerships are needed by companies and organizations for enhancing the productivity.These partnerships are of different types- mergers and acquisitions. When two companies mergerinto one, it is tagged as mergers. On the other hand, when one company takes control of theother, it is the acquisition activity of the company (Cartwright & Cooper, 2014). Mergers andacquisitions are one of the major economic aspects, which helps in maximizing the businessprofit value. The common perception is that acquisitions hold more importance than mergers, asit strengthens the personnel’ stance towards the business goals and objectives. Along with this,acquisitions is also assistance in terms of achieving business expansion and innovation. Thisassignment peeks into the dynamics of mergers and acquisitions through the summarization ofthe hapters from the book entitled, Mergers, Acquisitions, and Other Restructuring Activities: AnIntegrated Approach to Process, Tools, Cases, and Solution. Conditions for mergers and acquisitionsMergers and acquisitions takes place on certain conditions, which are as follows:Purchase of assetsBuying common sharesExchange of shares for possession of assetsExchanging shares in return of shares
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4MERGERS AND ACQUISITIONSTypes of mergers and acquisitionsMainly there are two forms of mergers- merger through absorption and merger throughconsolidation. Depending on the business combinations and commonality of industry, mergerscan either be horizontal, vertical or conglomerate (Bena & Li, 2014).Horizontal merger- the two merging firms are in the same industryVertical mergers add value to the business through the maintenance of sequence betweenthe different production stagesConglomeration is an innovation, as it reflects the partnership between two differentindustries9 reasons why mergers and acquisitions take place Mergers and acquisitions occur due to the following reasons:Financial instabilities- low investment capitalsNeed for pushing the company ot organizational growthPresence of diversified products in the market posing a challenge towards achievinghigher sales revenue (Kalinowski et al., 2016)Providing proper market access to the sellers for expanding the current market shareAdopting strategic vision towards the adoption of latest technologyObligatory tax paymentsImproper target valuationDiversified risks adding vulnerability in the current market position
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5MERGERS AND ACQUISITIONSPrinciples of merger and acquisitionSynergic value is considered in terms of valuing the consequences of mergers andacquisitions. The two parameters of the synergic value is revenue, the graph of which needshigher projection; expenses, which is usually taken low and the capital cost, which is alwaysnoted in the lower level (Judd, 2016). Along with this, there are certain specifications, whichneeds to be remembered while the companies and organizations indulge in mergers andacquisitions. These are as follows:Willingness to undertake risks and consciousness towards making investments forbenefitting from the contemporart mergers Mitigating the intensity of the risks by taking into consideration the diversificationpresent in the workplace. Optimization of the perspectives is vital in this case, as itenhances the clarity of the businessmen in terms of the appropriate risk mitigationstrategy (Galpin & Herndon, 2014)To adopt the appropriate change, the managers of the company needs to expose rationalattitude, which proves beneficial in aligning the performance with the identified andspecified goals and objectives. Apart from this, rational thinking assists the companies toindulge in fair trades and transactions with the mergers for the achievement of large scalecustomer satisfactionStages of mergers and acquisitionsAccording to Cooper & Finkelstein, (2014), every business activity is executed byfollowing certain steps, which yields positive results. The same is applicable for the mergers andacquisitions, which a company or organization follows:
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