Thursday, February 14, 2019
Why do Companies Continue with Mergers and Acquisitions when so many Fa
Why do Companies Continue with Mergers and Acquisitions when so many Fail?The phenomenon of mergers and acquisitions (M&As) triggers an arrayof opinions and viewpoints. Often it is a schema that is seen as aperfect way of achieving growth. It is by no meaning an organic ornatural route to success, but has tended to be a quick and easy way ofincreasing an organisations size and power. However although on that point havebeen waves of popularity and success since its introduction in the1960s it has also suffered critique due to the number of failures ithas accounted for. Despite the strong suggestion that this strategyhas been the interior designer for many an organisations downfall there stillremains a disposition in the current task environment for managersto adopt it. Throughout this endeavor I am going to examine some of the beas that explain M&As volatility and attempt to discover whymanagers are persevering with the strategy when it is seeminglyflawed.Over the last few deca des it has last increasing apparent that theeffect of mergers and acquisitions is not as beneficial as oncethought. When the growth strategy was pioneered in the middle part ofthe 19 hundreds it was looked upon as a way of creating anempire across different sectors and countries. numerous experiencedmanagers were sucked into the strategy, only having eyes for theapparent synergistical and positive affects of M&As. Although overthe following years there has been many success stories concerningM&As, when the big picture is examined it displays a more ugly gradientof the phenomenon. Hodge (1998) discovered that in the go-go 80s,37% of mergers outperformed the average shareholder return in thatperiod in the fi... ...nal, Autumn Customer text-section 2, topic 11.- Kieran et al (1994) be after the deals that generate value and gain advantage, Mergers and Acquisitions, March-April Custom text, topic 12.Journals- Doitte S & Smith G (1998). The morning after (avoiding mistakes in acquisitions and mergers). Winter v63 i2 p32(8).- Davenport, T (1998). The Integration Challenge (managing corporate mergers perplexity Review.- Heitner M (1998). The thorny business of merging rival firms, Mergers and Acquisitions.- Hodge, K (1998), The art of the post deal (outcomes of mergers). Management Review.- Price, A & Sloane, J (1998). Global Designs Tough Challenges for- Acquirers. Mergers and Acquisitions..- Whipple J & Frankel R (2000), strategical Alliance Success Factors. The Journal of Supply Chain Management.