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Acquisition decision in Europe

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Acme has been in acquisition talks with two different European firms. JEL Industries is headquartered in a country that is part of the European Union while DBC Industries is headquartered in a European country that does not belong to the Union and does not use the Euro as their primary currency.
Based only on the knowledge of whether or not the firm is located in a country within or outside of the European Union, recommend one of the organizations and explain why you selected that organization. In your response be sure to describe the implications of running a business in a country that is within or outside of the European Union.

Describe the advantages and disadvantages of the choice you made.

Would your decision change if the company you acquired primarily sold its products within all countries in Europe? Why or why not?

Would your decision change if the company you acquired primarily exported its products to Far East nations and the United States? Why or why not?

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Acme has been in acquisition talks with two different European firms. JEL Industries is headquartered in a country that is part of the European Union while DBC Industries is headquartered in a European country that does not belong to the Union and does not use the Euro as their primary currency.
Based only on the knowledge of whether or not the firm is located in a country within or outside of the European Union, recommend one of the organizations and explain why you selected that organization. In your response be sure to describe the implications of running a business in a country that is within or outside of the European Union.

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I would have chosen JEL industries as it is located in a country which is part of the European Union and using Euro as its currency. Beng part of a large trading block like European Union proves to be advantageous in most of the cases as it results in more stabilization of economic and political factors, greater cooperation among member nations and improved and better access to a fairly large market such as Europe in this case. If a country remains aloof from a big union like EU, there might be situations ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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