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Institution based issues

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As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based?

You are very enthusiastic about the opportunity to be a leading captain of industry and the associated power, prestige, and income. (You expect your salary, bonus, and stock option to double next year). However, you are troubled by the fact that 70% of mergers and acquisitions (M&As) reportedly fail. How would you proceed?

What institution-based issues would you encounter? Discuss.
What resource-based issues would you face? Describe.
What are your managerial motives? Explain.
Do you possess hubris? Explain your answer
How would you ensure the success of your acquisition?

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This solution assists in determining what institution based issues and resource based issues one might encounter.

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As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based?
Brown's Pharmaceutical Company is one of the leading pharmaceutical firms, in which develops, produces and markets drugs licensed for use as medications. For the past 20+ years we have been serving hospitals, doctor offices and medical clinics in the central and southwest regions of the United States. In the first decade of our business, we succeed in global expansion with Mexico, Honduras, Guatemala, Costa Rica, Peru and Chile.

The foreign firm we are trying to acquire is ABC Healthcare Centre in Eastern Africa. They are a group medical division that provides comprehensive healthcare services. Their services include in-hospital care, outpatient medical care, 24 hours-7 days a week nursing help-line and mobile health facilities. ABC Healthcare Centre services bringing healthcare to their clients' doorsteps in the event of emergencies available in major East African cities such as Kenya, Uganda and Tanzania.
You are very enthusiastic about the opportunity to be a leading captain of industry and the associated power, prestige, and income. (You expect your salary, bonus, and stock option to double next year). However, you are troubled by the fact that 70% of mergers and acquisitions (M&As) reportedly fail. How would you proceed?

Business acquisitions do require a great deal of work especially when it comes to the Legal and Financial areas. In the business community, this is widely understood and acted upon.

In order to proceed and make the acquisition successful, it would be necessary to set goals for the company in order to ensure success. Thereafter, it would be necessary to set up an acquisition plan to follow by. This plan would set ...

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