Mergers and Acquisitions Essay

Pages: 5 (1450 words)  ·  Style: APA  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business


As such, companies must be aware of these miscalculations in financials and adjust financial statements accordingly based on reasonable expectations.

The target company's strategy must also align with those of the acquiring company. The analysis of company strategy can be done with a simple SWOT analysis in which the strengths, weakness, opportunities and threats are analyzed within the company. Many M&As are motivated by the need to respond to the strategic environment. In response to this environment companies may require a skill or ability not inherent in its current operations. For example, Google may not have the hardware needed to compete with Apple Inc., in the mobile phone market. It does however have the name recognition and software components readily available. With its acquisition of Motorola Mobility, a mobile phone provider, Google can now effectively compete in the mobile device market. This, in effect, was aligning strategies in a manner that was conducive to the overall well-being of both companies.Download full Download Microsoft Word File
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TOPIC: Essay on Mergers and Acquisitions as a Assignment

Further, organization of the two companies must be considered. Culture, Leadership, human capital, organizational architecture, and talent of the merging firms have a major influence and the ability of the merger to succeed. With this in mind, analyst must also further consider post merger organizational structure. Too often, M&As fail in part due to a misalignment of company cultures. This is especially true for international firms with extensive global operations. Daimler-Chrysler was a $40 Billion acquisition that simply could not accomplish the synergies that management believed it could. Daimler-Benz originally was a German manufacturer of cars. By merging with the American-based Chrysler, executives believed they could accomplish synergies that the two companies individually could not. To an extent, the executives were correct in their assumptions, however, the company cultures simply could not mesh well together. The American style of business, within the auto industry was so juxtaposed against the European methods that the merger eventually failed.

Brand, is arguable one of the most important intangible assets a company possesses. A brand affects the thinking of consumers which further shapes the expectations of that particular consumer. Even though a company's brand is what resonates with consumers, it is often very difficult to quantify accurately. In such instances companies during M&As often pay entirely too much for a brand that does not fit well within the combined organizations.

What institution-based issues would you encounter? Discuss.

Many issues will hinder both institutions once a merger has been finalized. One predominate issue that plaques the newly formed institution is that of human capital and its subsequent retention. Human capital retention within America is becoming a very contentious issue during these times of economic turmoil. Not only are jobs being lost at a rapid rate with unemployment at 9.2%, but also many jobs are being outsourced to low cost countries. Combine this with the fact that many businesses are reluctant to hire, and human capital retention becomes a major conundrum for many institutions considering M&A activities. In this example, I will juxtapose the human capital retention within the United States to those of Asian countries.

The first, and often neglected reason both western and eastern countries differ in human capital retention is that of cultural background. To elaborate on this point I would like to state two very common sayings that beautifully illustrate the reason why human capital retention vary so widely among western and eastern nations.

First is a common saying from American culture that reads:

"….this is a what-have-you-done-for-me lately society. If you don't produce, we will find someone who will..."

Again, this common American saying reiterates all my above points regarding human capital retention rates within America. We are so focused on ourselves and on our own individual needs that we often sacrifice the benefit to society. Likewise, when we look out only for ourselves, talent that otherwise could be cultivates instead, "slips through the cracks."

This is another common saying that originated in Japan that reads:

"…the nail that sticks out will be pounded down."

This too, is a saying that reiterates all the points mentioned above, Asian countries are more collectivistic by nature. The individual that stands out is frowned upon in society. Instead the individual who… [END OF PREVIEW] . . . READ MORE

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How to Cite "Mergers and Acquisitions" Essay in a Bibliography:

APA Style

Mergers and Acquisitions.  (2012, March 19).  Retrieved September 25, 2021, from

MLA Format

"Mergers and Acquisitions."  19 March 2012.  Web.  25 September 2021. <>.

Chicago Style

"Mergers and Acquisitions."  March 19, 2012.  Accessed September 25, 2021.