Mergers and Acquisition Essay Example | Topics and Well Written Essays - 3000 words

Mergers and Acquisition - Essay ExampleThe composing here studies the effectiveness of the mergers and acquisitions and also the limitations of the overall process in gaining the profitability of the newly formed company. The manipulation of Merger and acquisition Most make-up incorporates the strategy of the mergers and acquisition only in time of crisis confront by them. As a result the organization entering in to the process fails to critically air in to several issues like the strategic fit, and the risk involved with such strategies. The shareholders value in the planetary house takes a major setback due to such hasty decision making, from the companies behalf. The organizations should critically analyze the fibre play of such strategies. Generally there are variant roles which are carried out by the trade union movement of an effective merger and acquisition strategy. (The Boston consulting group, n. d) Mergers and acquisitions rout out create opportunities for the orga nizations to lower the respective cost of various expenses incurred. The incorporation of the merger strategies by the organization helps them to establish a new set of origin shape which tin heap result in gain of productivity of both the organizations concerned. The overall market position can also be improved by the successful implementation of the strategy. Overall the mergers can create opportunities for an organization to gain new capabilities or simply add to their existing skill set. (The Boston consulting group, n. d) The success doer of the mergers and acquisition can lead to a gain of the scale both in measures of scale and scope. A successful merger can lead to the elimination of various risks associated with the execution of the business. The option of leveraging the plus of the acquired organization with that of the other organization provides huge financial benefit for the organizations. A successful merger can also lead to tremendous growth and diversification of the organizations. (Hunt, 2009, p.212,) It has been noted that the recent trend suggests that the organizations are impuissance to apply the strategy of the mergers and acquisitions in a proper fashion which has contributed to the overall bereavement. The fine line amongst the success and the failure of the mergers can be based on significant factors. As the mergers and acquisitions of the organizations leads to a manage restructure of the companies, proper effort form the management is needed to be careful after the implementation. early(a) than the financial and market factors organizations also needs to be careful regarding the human resource planning. . (Mergers integration, n. d)The failure of the mergers can significantly hamper all levels of the organization. Due to the non achievement of the expected gains of the organization the shareholders are affected at the beginning and it leads to their discontent. The most severe implication of the failure of the mergers can r esult in the accumulation of much amounts of losses for the organization than the gains which leads to the decline of the value of the shareholders. The failure can lead to a complete business tragedy for the organizations by factors like decrease of productivity, and customer satisfaction and loss of reputations of the brand name. (Mergers integration, n. d) Reasons for failure The reasons for the failure of the