Business Research: Mergers and Acquisitions in Today's Market

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Business Research
Mergers and Acquisitions

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Aim: Analyse the different aspects of mergers & acquisitions to the companies.
Objectives
 To understand the concept of merger & acquisitions
 To identify the advantages or drawbacks of merger & acquisitions
 To analyse the influencing factors for merger & acquisitions
Reason for choosing this topic
In today’s business world, competition has been getting increased by each passing
day for the companies. Running a business house successful is getting difficult by
own which has been considered as a big reason behind the larger number of merger
& acquisitions in past few years. As a student, it will be helpful to understand the
concept of any of running trend in business world. It will be helpful to identify the
requirements of the businesses (including larger business groups and small
business groups) which would increase knowledge of the student about business
world so far. It not only enhances the knowledge of the students but it will be also
helpful in order to manage the professional life of a student. It helps to understand
the factors which will make the business influences for merger & acquisitions as well.
These factors help to analyze the market and its impacts on the big & small
companies which would be considered as one of the major helpful factor in
professional life in future

Literature review
The more the competition has been getting increased, the more the merger &
acquisitions has been increased. It is considered as a today’ business world
requirement in order to successfully run the business as well.
The concept of merger & acquisitions
In the words of According to Kumar, (2019) merger & acquisitions are considered as
the process of two companies coming together or combine their business on some
certain norms with some common goals or to achieve some certain energy as well. It
would be completed through various types such as two or more companies become
one new company or involve some part of the companies to another company in
order to run some operations commonly in order to achieve goals & targets as well. It
will be helpful to overcome the business from the running competition around and it
also helps to reduce the complications of market to the businesses.
Mergers refer to the combination of the two companies in an all-new third company
with a new name and planning. It will be helpful to the companies in order to provide
the companies assistances in uniting their strengths, weaknesses, and resources as
well. It helps the company to overcome the issues running in the companies earlier
(Kumar, 2019). It has horizontal, vertical, reverse, congeneric and conglomerate
types which are popular among businesses in past few years.
According to Eisenman & Paruchuri, (2019) acquisitions refer as a purchase of an
entity by another entity. It would be done with various ways such as purchasing
ownership by shares or completely buying any company with all the rights as well. It
will be helpful to develop the new structure, size and operations of the new company
in the future. Hostile, friendly and buyout are the basic types of acquisitions in
today’s world (Eisenman & Paruchuri, 2019).
The advantages or drawbacks of merger & acquisitions
New opportunities will be open for those companies which are facing struggle for
their survival because of the instability of the markets and market complications as
well. It helps the companies to identify and access new opportunities or possibilities
to a new market as well. It increases growth and success rates of the companies.

According to Arulampalam, et. al., (2019) taxation reduction is considered as the
biggest advantages for the companies. Reverse mergers will be helpful in terms of
reducing taxation for private companies which will be helpful to invest that amount to
the growth and success of the companies.
Listing in IPO at lesser costs will be another benefit for mergers & acquisitions so
far. It will be helpful to the private companies to become a public company at lesser
cost and it helps to get listed to the companies to IPO with lesser costs
(Arulampalam, et. al., 2019).
Drawbacks of merger and acquisition
In the words of author Bena and Li, (2014), merger and acquisition attain some of
the drawbacks which needs to be addressed as determining about the drawbacks
would be helpful to get resolution regarding the further challenges. One of the major
drawback of this issue is related to the higher pricing of the deals or agreements. As
there is not any certain amount had been decided to initiate the concept. One
powerful organization can demand any of the suitable price for merge and that needs
to be followed by the other business enterprise. This pricing issue makes conflict in
the usage of this particular approach. The other disadvantage of merger is related to
understanding and adjusting with the changes. The concept would be new fir both of
the organizations and this sis also necessary to understand that the time which will
be taken to adjust will affect the performance of organization.
Influencing factors for merger & acquisitions
In the words of author Levi, et. al., (2014), merger and acquisition is critical task to
be initiated by organization but on the other hand there are some certain reasons
behind implementing the concept. One of the major influence behind choosing the
concept is related to increasing the strength and performance of the organization.as
the merger will have combined the mindset and values of two different organizations
which will ensure the thinking of two different parties to be initiated. The other
influence of attaining the ideas is related to attaining the growth and as this will help
the organization to combined take some steps which helps to grow in significant
manner. these could be stated that the collaboration of organizations gives
advantage to build more impactful growth rate in the market. Thus, it could be stated

that merger is beneficiary to attain the growth and development in context of
organizational structure and performance.
According to the author Schmidt, (2015), the merger or acquisition could be effective
to attain the effective supply chain power. As it helps to build the strong impact on
the specific suppliers and helps to accomplish their trust and faith. The power of
suppliers directly gives the positive impact to the growth and development of the
existing market. This could be stated that attaining the supplier’s growth and strength
is one of the major factor to build the merger and acquisition. One of the other major
advantage of merger and acquisition is related to the decrease of competition. As the
merger is one of the concept combined two companies. This helps the both of the
organizations to reduce the challenges and provides the abilities to work in more
efficient and impactful manner. These are some of the major influences behind
initiating the concept and helps to attain the growth and development.

Research problem
This could be understanding that the concept of merger and acquisition is valuable
for the organization but there are some of the issues and challenges which have
been addressed in the report while implementing the concept (Bena and Li, 2014).
One of the major issue which is related to the concept is understanding about the
pricing limits while implementing the approach of merger.

Research question
The research questions are some of the aspects which needs to be clarified while
the completion of research. The major question needs to be addressed are: What
will be the impact of merger and acquisition on an organization.

References
1. Arulampalam, W., Devereux, M.P. and Liberini, F., 2019. Taxes and the
location of targets. Journal of Public Economics, 176, pp.161-178.
2. Bena, J. and Li, K., 2014. Corporate innovations and mergers and
acquisitions. The Journal of Finance, 69(5), pp.1923-1960.
3. Eisenman, M. and Paruchuri, S., 2019. Inventor knowledge recombination
behaviors in a pharmaceutical merger: The role of intra-firm networks. Long
Range Planning, 52(2), pp.189-201.
4. Kumar, B.R., 2019. Mergers and Acquisitions. In Wealth Creation in the
World’s Largest Mergers and Acquisitions (pp. 1-15). Springer, Cham.
5. Levi, M., Li, K. and Zhang, F., 2014. Director gender and mergers and
acquisitions. Journal of Corporate Finance, 28, pp.185-200.
6. Schmidt, B., 2015. Costs and benefits of friendly boards during mergers and
acquisitions. Journal of Financial Economics, 117(2), pp.424-447.