Buy essay on Merger and Acquisition strategies

Any business that was started is expected by its creators to be a success. There is no doubt about this fact, as no one would start a business waiting for it to decline. In order to be successful every company should grow in all directions: vertically and horizontally. Sometimes the natural growth of a company, i.e. organic, is very slow. Besides it may be connected with some difficulties that are not desirable. That is why wise businessmen who try to improve the way their business develops prefer to use every method that is possible to make their company grow and bring them profit. As a result the modern business world watches the growing tendency towards mergers and acquisitions of companies.
Merger is the process of combining of two companies. A large company absorbs a smaller one due to some reasons. The shareholders of the target company are usually compensated to a certain degree.
Acquisition is the process of acquiring of one company by another. The target company is the one that is acquired. The larger one is acquiring company. Sometimes acquisition may be friendly. In this case both companies agree with each other to the tender offer. The acquisition may also be unfriendly. That means that the tender offer was not conformed between the companies.
Mergers and acquisitions are not performed only if nothing else could be done and a company may go into bankruptcy. Many large companies and organizations constantly search the market and look for potential targets. The most respectful companies that pay much attention to this potential way of developing themselves may even hire a professional – a person who is responsible for this very aspect. The company’s profits from the acquisition or merger may be divers. A company may want to expand its activities in the same field, or it may want to add new activities, or it may want to strengthen the activities that already exist. After the decision for the search of a potential company for merger or acquisition was made, this decision is reported to the decision-making authorities that start to search the target company.
Large companies try very often to elaborate the possible way of their development many years ahead. They may not need such actions as merger or acquisition right at the moment, but they already estimate the possible profit these steps may bring them. Such financial analysis may be carried out by a person who possesses the corresponding knowledge. This analysis may be also carried out by special software, elaborated for this purpose. That is why large companies prefer to hire such important employers as lawyers, analysts, and many other professionals that may help the company develop very quickly and efficiently. If they estimate that merger or acquisition is required, the company starts to search for potential target company.
After the victim was identified, the next stage begins: the starting of negotiations. The possible alternative to merger or acquisition is hostile takeover. In this case the stock of the target company that was to be acquired is bought through a third party. No doubt this process is as complicated as the process of merger and acquisition and requires the drawing of many people into it (investment bankers, for example).
However the reverse process may take place sometimes. A businessman may choose to leave the sphere he was. He may do it for any reason, and he possesses all the rights for this decision. This situation also concerns merger and acquisition process and therefore in always performed confidentially until the process comes to an end.
In order to protect any merger process from failure it is wise to make a sound plan that would contain some strategy of the further actions. That will help to remember about all important and necessary issues. Thus everything will be kept in mind in the process of developing Merger and Acquisition strategies.