International Financial Management: Mergers and Acquisitions in Retail Sector

INTERNATIONAL
FINANCIAL
MANAGEMENT

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................3
Mergers and acquisitions........................................................................................................3
Secret Success of Merger and Acquisition.............................................................................6
International harmonisation occurring in the M&A field.......................................................6
Organisational Structure and employees in Merger and Acquisition.....................................8
Taxation..................................................................................................................................8
Accounting and funding.........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Executive Summary
The report explains the importance of Merging and acquisition field in retail sector of
four company that is United States, Japan, United Kingdom. This report will emphasize on USA
retail industry which is focusing on replacing leadership and cutting cost by creating large
opportunities in retail industry while UK has slow and gradual increase as the outsider
companies take time to understand the rules and regulation and the legal frame work of the
country. Moreover, M&A activity is increasing in japan as the country supports flow of types of
goods and services in the retail industry. In addition to this, acquisition of German organisations
has led the major positive impact on German customers. Hence, the report analysed the secret
success of M&A in retail sector of all four countries.
INTRODUCTION
Merger and acquisition (M&A) is termed as stabilization or strengthening of
organisations. Further, specifically merger amalgamation of two firm in one company while
Acquisition is completely taking over another firm. Moreover, both play a major role in
cooperative finance world. Hence, the report will evaluate the success of M&A of retail sector in
countries like UK, USA, Germany and Japan and will also analyse the probability of
international harmonisation occurring between fields of Merger and Acquisition.
Mergers and acquisitions
Merger and Acquisitions are the strategy used by the firm of different countries to sustain
a competitive advantage in retail industry across the globe. Companies invest huge amount of
money to use this strategy which ensures the stability and development in retail world. The
accomplishment of M&A in different countries is described in tables given below:
UK
Merger and Acquisition in continuously
increasing UK as the international corporate
firms are easily ready to invest in the country.
M&A in UK has slow and gradual increase as
the outside companies take time to understand
the rules and regulation and the legal frame work
of the country as it is very strictly designed for
USA
Merger and Acquisitions of USA are growing
slowly and gradually in the country is all
about gaining a competitive advantage and
large market share.
Success of M&A in US is all about
diversifying products and services.
USA business enterprises focuses on

the finance world of UK.
The factor which help M&A is the sticking right
balance between tangible and intangible assets
the country which means consideration of
human capital, relational capital and
organisational capital that comprises models of
operating, relationships with stakeholders and
customers.
Developing opportunities in UK establish
employment which is further contributing in
economic development.
replacing leadership and cutting cost by
creating large opportunities in retail industry.
The major factor which help them in merging
is the surviving capability which helps the
firms in identifying the measures which will
ensure the stability of company.
Germany
The involvement of merger and acquisition in
Germany has increased to an outstanding level.
Germany has the maximum international
investment by M&A across the globe.
It has been also recorded that the acquisition of
German organisations has led the major
positive impact on German customers.
The factor which help them in M&A is the
impact of German leadership which means the
firm begins to adapt new policies vision, and
values as soon as possible to gain the
leadership position in market and to earn
maximum number of customer loyalty
(Brinckmann,Salomo,and Gemuenden 2011).
Japan
The merging and acquisition activity is
increasing in japan as the country supports
flow of types of goods and services in the
country.
M&A is increasing in japan as the country
follows the consulting approach which enhance
the level of sustainability which helps the firms
in easy financial transaction, flow of goods and
services in retail sector.
These all easily flow of transaction in japan
helps the merger in covering life cycle of basic
transaction needed to accomplish
organisational goal and to achieve stability in
foreign market.