i am looking for help comprising a literature review on success or failure in mergers and acquisitions, and then an application of this to pharmaceutical companies (GlaxoSmithKlein's acquisition of Human Genome Science and Astrazeneca's acquisition of Ardea)© BrainMass Inc. brainmass.com October 25, 2018, 9:05 am ad1c9bdddf
In accordance with BrainMass rules this is not a completion of assignment but only guidance.
It is true that many mergers and acquisitions do not achieve an increase in shareholder wealth in acquiring company. There are many reasons why mergers and acquisitions do not achieve the increase in shareholder's wealth in acquiring company. Mergers and acquisitions are done without thinking; their intention is to get glory for the executives, and to reduce competition (1). Before and after the merger the executives do not spend adequate time in making the merger work. Mergers with a limited purpose such as getting access to the market often have large cultural difference. This leads the market to fail. The mergers fail because in several cases the only purpose is to make them big (2). There is no plan for combination, no effort to integrate, and no support from employees. After the acquisition is complete the top managers often ...
This posting gives you a step-by-step explanation of acquisitions in pharmaceutical industry. The response also contains the sources used.
Mergers & Acquistions - Goodwill
Goodwill is an accounting entry equal to the difference between purchase price and the net asset value of the acquired assets. As a business manager, what do you believe goodwill represents? How could the factors that goodwill represents actually contribute to improving the combined firm's future cash flows?View Full Posting Details