Merger And Aquisition

M&A is explained as creating greater stockholder value. share makeer interests are central because these transactions must have the acclamation of a majority of stockholders and stockers are unlikely to vote their shares in favor of a sale, puechase or merger unless they believe that they leave behind benefit. However, the real motivation behind M&A is about al rooms a mixture in which financial, structual, institutional, and hitherto personal aims are present. Companies make acquisitions to grow more rapidly, to gain understand over theor raw materials, to obtain new technology, to pump up their stock, to take advantage of weaknesses in others, to turn, etc. Greed, or self-importance intesest, is the primary reason to establish an idea for M&A. It plays dandy and bad roles for motivating M&A.
?If the caller and the management group is greed, they suffer use M&A to increase the securities industry share. Since each company has its special customer groups and product reputation, it has its own market share in the industry. One company can increase its market share it does not have with M&A. For example, HP acquired Compaq in 2001. HP could increase its market share of printer, scanner and cameras because Compaq had a big customer undercoat for these products. Compaq can help HPs push into the commercial-printing market.



The lucrative imaging and printing unit will go from universe 43% of HPs business to 25% of the combine company.
?Since the economic environmen is uncertain, a company should find a way to resisit to the economic shock. Greed makes the company struggle to survive even under the economic reccession. The most effective way is to diversify its products. Greed can force the comany to complemnting its product offerings on and on for diversity through M&A. After the products are diversified, the company can still keep operating well when encountering an receding in one or some of its products. HP is whole in the consumer machines but Compaq is stong in the business PCs. After M&A, HP can also...If you want to get a liberal essay, order it on our website: Orderessay



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