TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Motivation for Merger & Acquisitions.......................................................................................1QUESTION 2...................................................................................................................................2Evaluation of Target Company...................................................................................................2QUESTION 3...................................................................................................................................5Structure of Deal and Target Strategy.........................................................................................5QUESTION 4...................................................................................................................................6Reaction of Market for this Merger............................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONThis report is based on acquisitions that is made by General Electric by acquiring BakerHughes incorporated, both the companies are working in the field of production and extraction ofOil and Natural gas. This report consists the motivation behind acquisition of Baker Hughes byGeneral Electric. The evaluation of target company by different methods and process ofcalculation of synergy is presented in this report. The structure of deal and analysis and marketreaction because of deal had also been mentioned in the report. QUESTION 1 Motivation for Merger & AcquisitionsThe motivation behind acquiring company Baker Hughes Incorporated by GeneralElectric Company is that they are both working in field of providing products and servicesrelated to oil and natural gas in different countries which includes Australia (De Houwer, 2017).Baker Hughes incorporated had been working in same field and shown growth in thissector of production of oil and natural gas from previous years.The Following is SWOT ANALYSIS of Bakers Hughes incorporated-:Strengths1.They are having successful trackrecords in development of new product2.Workforce is highly skilled3.They are having higher level ofcustomer satisfaction4.They are Having very Strong PortfolioWeakness1.The organisational structure may not becompatible for presenting businessmodel.2.The work force attrition rate is veryhigh (Shelton IV and Willis, EthiconInc, 2017).3.Baker Hughes may not be able to tackledifferent challenges that are presentedby new entrants. Opportunities1.There has been decrease in shippingprices so there is opportunity for BakerHughes to make profits.Threats1.Increase in prices of raw material canhave threat on profitability of company.2.Changing trend of selling online can1
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