The International Merger and Acquisition

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Added on 2020-02-05

The International Merger and Acquisition

Added on 2020-02-05

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INTERNATIONALFINANCIALMANAGEMENT

The International Merger and Acquisition_1

Table of ContentsINTRODUCTION ..........................................................................................................................3TASK A .........................................................................................................................................3TASK B...........................................................................................................................................6CONCLUSION ...............................................................................................................................7REFERENCES ...............................................................................................................................8

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INTRODUCTION Merger and acquisition is the process which helps in combining the two companies witheach other. It helps in increasing the profit of each other and support them to work in a propermanner. It aid in generating the economic gain which helps in improving the per capita incomeand GDP. Along with this it also leads in reduce the threat of takeover by other companies. Thecapital investment get increase which further promote in producing quality products andservices. The present research is based on the internation merger and acquisition in the fourmajor countries which contributes more in the global economy. The four host countries are UK,USA, Germany and Japan. In these countries they have good economic growth and it is clearlyfound that many organisations work together to support each other and increase the faircompetition chances(Calvani and Alderman, 2010).TASK A It is analyse that from the last few years the takeover market has become significantlymore active. It helps in increase the profit and growth of many companies and provide a platformwhich aid them in doing their business activities at the global level. But sometimes the mergerand acquisition get failed and know how some companies are still target in merger andacquisition. There are various number of motives which apply by conducting this approachwhich helps in the providing a smoothness in the merger and acquisition. The motives of thisapproach is as follow:1.Synergy2.Agency 3.HubrisSynergy: From the past years it is examine that many firms main motive in engaging in mergerand acquisition was the synergy. This hypothesis suggest that the value of the combinedcompany is higher than an individual organisation. It is found that in UK and USA manycompanies perform this activity through which their business value get increase and the dividendprovided to their shareholders also get increase(Changqi and Ningling, 2010). Agency: Under this hypothesis it is identify that it clearly helps in increase the welfare of theshareholders. This process helps them in getting large number of shareholders. It is also termed

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