Mergers & Acquisitions are new & quite confusing to me. Write an essay to discuss mergers & acquisitions strategies along with the pros and cons of Hewlett Packard/Compaq. Please be sure to cite references.
Mergers & Acquisitions
Mergers & Acquisitions are new & quite confusing to me. I have to write a 750 word essay which I discuss the mergers & acquisitions strategies along with the pros and cons of Hewlett Packard/Compaq. Please be sure to cite references.
There are several strategies for mergers & acquisitions. These strategies emerge from the basic goals of the organization. The overwhelming objective for most mergers and acquisitions is to achieve growth. This may be through increasing the market share, improving distribution or acquiring a potentially profitable business.
Mergers and acquisition strategies are adopted for several reasons. The objectives range from capturing a larger market share, making sure of supply of raw materials to developing financial strength. Merger and acquisition strategies usually have the objective of achieving growth. There are several other objectives that also drive acquisitions these are acquiring innovations, getting access to important patents and getting new talent for the company. In general an acquisition should be in line with the company's strategy. An important aspect of mergers and acquisitions is to communicate the acquisition strategy to all concerned. The company selected for acquisition must fit the criteria that define the objectives the company wants to achieve. For instance, if the acquirer is looking for innovations it should select companies that have innovations that suit the product line and market position of the acquiring company. Similarly, if the acquiring company is looking at sources of raw material for its manufacturing, it should select companies that will be able to meet the raw material requirements of the acquiring company (1).
The next problem the acquiring company faces is the problem of integrating the ...
This answer provides you an excellent discussion on Hewlett Packard and Compaq merger