Custom essays on Merger and Acquisition strategies

Merger and Acquisition strategies are of great significance and importance as a very good profit may be received from an acquisition deal or a merger with their help. Good and effective strategies are not that easy, so sometimes it is very difficult to anticipate and estimate which one will bring the maximum profit to the company. It may be especially difficult for those companies that deal with merger and acquisition strategies for the first time. However in this case they may consult those companies which have been practicing the use of merger and acquisition strategies for a long period of time. In this case the desired effect can be easily achieved.
After many researchers and investigations of the marker sphere for different techniques and strategies useful in merger and acquisition it has been found out that there are some universal golden rules that can help any merger and acquisition to be successful.
Before making the final decision as to merger of acquisition deal it is worth to examine the market position and the market performance of the target company. In this case the target company with optimal possibilities will be chosen and the deal can be made at a good price.
It is important to identify the opportunities of future market, the latest market tendencies and trends and besides the reaction of customers to the company’s products. If these spheres are investigated the potential growth of the company can be expected.
After the acquisition or merger deal is finalized, it is important to start the process of companies’ integration in time. Before closing the deal, when the process of negotiations is still on, both companies start to require one more important action: they must work together on a proper strategy of integration. This is done in order to ensure that the closing of the deal will not lead to any problems afterwards.
In case the company that wants to acquire the target firm intends to restructure the target company, then the company should implement and declare this plan within the acquisition period in order to avoid some uncertainties.
Considering the environment that is created during the work and the culture of the employers of the target company is another important aspect that should be taken into consideration. It should be done during the planning and elaborating merger and acquisition strategies. This approach will help employers of the target company avoid feeling demoralized and depressive.
Merger and acquisition strategies are very important for the successful growth of a company. There are certain ways that can improve their significance and effectiveness. That can be done with the help of the Market Engineering system. These strategies are usually carried out by financial advisors, lawyers and other professionals.
As a matter of fact, a company that looks forward to merger or acquisition may not be totally sure of the correctness of the chosen path. But there are certain reasons according to which a company should support merger and acquisition strategies. Thus, for example in case of the positive decision as to merger, a company may acquire the unique market position of the target holding. Besides there is a possibility to improve profit by cutting duplicate costs. In addition a company may get profit from a potential turnout situation and geographic expansion move. A company may acquire additional complimentary skills, increase its product line in depth and breadth, improve IPO possibilities, and get access to the base of new potential customers. As a pleasant addition a company gets competition elimination.
There are also certain ways of market engineering that can make acquisitions and mergers more successful. Thus, negotiations and price can be improved if the exact market position is known. Providing insurance and credibility to bankers and investors may also play a very important role in mergers and acquisitions. It is also true in respect of choosing a candidate for acquisition and identifying the opportunities of the market. The image of a customer in the market matters very much, so customers’ attitudes to the product of the company are very important too. The demographic data that signifies the characteristics of a customer may have an influence on the success of a merger or acquisition as this data let make a look into the potential of the market and the growth that is expected for the target company. The segmentation analysis of the market may help to identify opportunities for future growth. The effective growth of a company presupposes that it is rather fast. The areas for fast improvements in the company may be investigated by competitive measurements of benchmarking. The measurements of the market and different trends in technique may help to anticipate the potential growth of technological development of a company. The company’s merger or acquisition may lead to some new opportunities. However some problems may also arise. In order to prevent them it would be useful to identify main trends in the market, alongside with company’s relative position comparing with competitors and customers.
There are some basic strategies of company’s merger and acquisition that are already described in some guidelines. These sources contain classic examples of successful strategies and may be rather helpful and useful at the very beginning of company’s development. They may help at the stage of planning merger or acquisition, for instance. These guidelines are “Healthcare Market Research & Forecasting”, “Industrial Market Research & Forecasting”. However they are not enough to win all the competitors in the severe atmosphere of business world. But there is some grain of truth in them. Thus, they recommend clarifying objectives and goals of acquisition program. It will be also helpful to define the ideal description of a company. A database that contains all the potential target companies will be very useful. The screening procedure of market and the interviewing of the target customer may help to gain success. Besides, all the possible competitors should be analyzed. If the given advice is followed the company is sure to develop in a successful way very quickly.