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Acquisitions and Mergers

Acquistions: reasons for, examples of, including stats.

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The term acquisition means the procurement of a smaller company by a larger company. Legally speaking, the intended firm no longer exists. However, sometimes the smaller company will attain organizational control of the larger and/or longer recognized business while keeping its company's name for the collective entity. (Gitman, L.J., 2009)

Accomplishing acquisition achievement has demonstrated to be a difficult task. Studies have shown fifty percent of all acquisitions have failed. For example, target firms have lost up to twenty-one percent of their company's top executives every year for up to ten years subsequent to an acquisition; this is more than twice the turnover for non-acquisitioned companies. (www. newswise.com, 2008)

Sound business decisions must be made for a company to remain profitable and competitive, therefore direct competition from other companies is the biggest reason for an acquisition. Most companies will purchase a ...

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Sound business decisions must be made for a company to remain profitable and competitive, therefore direct competition from other companies is the biggest reason for an acquisition. Most companies will purchase a corporation, to maximize their shareholder's stock and achieve........

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