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International Management : Cross Border Mergers and Acquisitions

   

Added on  2022-09-01

15 Pages3487 Words21 Views
FinanceLeadership ManagementLanguages and CulturePolitical Science
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Running head: INTERNATIONAL MANAGEMENT
International Management
Name of the Student
Name of the University
Author’s Note:
International Management : Cross Border Mergers and Acquisitions_1

1
INTERNATIONAL MANAGEMENT
Executive Summary
The objective of this report is to understand about cross border mergers and acquisitions or
M&A within the most effective manner. M&A could be referred to as the consolidation of
different organizations. Mergers are the combinations of two and more organizations for
forming into one and acquisitions is any one organization that is being undertaken over by
another company. This M&A are depicted as an important aspect of the entire corporate
finance world. M&A could easily take place during the purchase of common shares,
exchanging of asset shares, exchanging shares for stocks as well as the acquisition of
different assets. Mergers could even be categorised into 3 kinds according to the economic
perspectives based on business amalgamations. This report has adequately described the
importance of M&A in the overseas expansion of MNEs after discussing different
circumstances with case studies and suitable reasons.
International Management : Cross Border Mergers and Acquisitions_2

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INTERNATIONAL MANAGEMENT
Table of Contents
Executive Summary...................................................................................................................1
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Definition of Cross Border M&A....................................................................................3
2.2 Different Circumstances under which MNEs use Cross Border M&A...........................4
2.3 Case Studies for Successful and Unsuccessful Cross Border M&A................................6
2.4 Identification and Discussion of the Reasons for Success and Failure of Cross Border
M&A......................................................................................................................................7
3. Conclusion..............................................................................................................................9
4. Recommendations................................................................................................................10
Reference List..........................................................................................................................12
International Management : Cross Border Mergers and Acquisitions_3

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INTERNATIONAL MANAGEMENT
1. Introduction
M&A or mergers and acquisition is subsequent transaction, where the subsequent
possession of different companies or the respective operating unit is being consolidated with
any other entity1. This particular aspect could easily enable the organizations in growing as
well as downsizing and changing the type of the company or competitive positions. A merger
is the legalized consolidation of 2 distinct businesses into one. However, the acquisition takes
place as soon as anyone entity is taking possession of different assets, equity interest and
stock of the other objects. Two different types of transactions are responsible for resulting in
the asset or liability consolidation within one body2. An acquisition as well as takeover is
referred to as the subsequent purchasing of any one organization by any other organization or
business entity. Consolidation takes place when two organizations amalgamate for forming a
completely new enterprise for ensuring independent ownership. The following report outlines
a brief discussion on the cross border M&A with their importance in multinational
enterprises.
2. Discussion
2.1 Definition of Cross Border M&A
Cross border mergers and acquisitions could be defined as the deals within domestic
firms and foreign companies within the respective target country3. The subsequent tendency
of this incrementing this type of M&A has eventually incremented with the trend of
globalization in the worldwide economy. It should be considered that the M&A could
represent only when there exist chances of extra income for doing so. These two international
and domestic companies should obtain maximum success from the deal that is being made.
1 Deng, Ping, and Monica Yang. "Cross-border mergers and acquisitions by emerging market firms: A
comparative investigation." International Business Review 24, no. 1 (2015): 157-172.
2 Du, Min, and Agyenim Boateng. "State ownership, institutional effects and value creation in cross-border
mergers & acquisitions by Chinese firms." International Business Review 24, no. 3 (2015): 430-442.
3 Xie, En, K. S. Reddy, and Jie Liang. "Country-specific determinants of cross-border mergers and acquisitions:
A comprehensive review and future research directions." Journal of World Business 52, no. 2 (2017): 127-183.
International Management : Cross Border Mergers and Acquisitions_4

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