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Mergers and Acquisitions of Target Corporation

Evaluate how mergers and acquisitions can support the strategic initiatives of Target Corporation.

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Target Corporation was founded in Minnesota in 1902. It is the sixth largest retailer in the United States and is ranked 27th on the 2005 Fortune 500. Target is performing very well in the market place though its stock's performance is subdued. The company operates over 1,450 stores in 47 states in USA.
Merger and acquisitions can support the strategic initiatives of Target in following manner:

One plus one makes three: this equation is the special alchemy of a merger or acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies--at least, that's the reasoning behind M&A.
This rationale is particularly alluring to companies when times are tough. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.
There are a ...

Solution Summary

An evaluation of how mergers and acquisition can support strategic initiatives of Target Corporation is given. References are provided.