Abstract

Competition is fierce, and companies must team up to survive in an industry where specialized knowledge is sovereign. One of the largest, most critical, and most difficult parts of a business merger is the successful integration of the enterprise networks of the merger partners. BPO Systems has the expertise and skills to make your merger or acquisition a much smoother process. An attempt has been made to draw the results of only some of the earlier studies while analyzing the causes of failure of majority of the mergers in this exploratory Research paper. Making the mergers work successfully is not that easy as here we are not only just putting the two organizations together but also integrating people of two organizations with different cultures, attitudes and mindsets. While making the merger deals, it is necessary not only to make analysis of the financial aspects of the acquiring firm but also the cultural and people issues of both the concerns for proper post-acquisition integration and to make the combination successful.

Highlights

  • Background of the StudyMergers and acquisitions are taking place all over the world irrespective of the industry and it is necessary to understand the basic concepts pertinent to this

  • The term merger involves coming together of two or more concerns resulting in continuation of one of the existing entities or forming of an entirely new entity

  • The mergers and acquisitions basically aim at enhancing the shareholders’ value or wealth and the results of several empirical studies reveal that mergers and acquisitions consistently benefit the target company's shareholders but not the acquirer company shareholders

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Summary

Background of the Study

Mergers and acquisitions are taking place all over the world irrespective of the industry and it is necessary to understand the basic concepts pertinent to this. The term merger involves coming together of two or more concerns resulting in continuation of one of the existing entities or forming of an entirely new entity. Amalgamation involves the fusion of two or more companies and forming of a new company. When the acquisition is 'forced' or 'unwilling', it is generally called takeover. The terms 'merger', 'amalgamation', 'acquisition' and 'takeover' have specific meanings, they are generally used interchangeably. Mergers are friendly whereas tender offers are hostile

Causes for Failure of Mergers and Acquisitions
International Journal of Management and Development Studies
Conclusion
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