Tuesday, May 26, 2020
The Vital Roles Of Mergers And Acquisitions Finance Essay - Free Essay Example
Sample details Pages: 5 Words: 1461 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? In the world of corporate finance, mergers and acquisitions play a vital role. The pace of mergers and acquisitions picked up in the early 2000s after a short hiatus in 2001. The economic shutdown and recession in the United States and elsewhere in 2001 brought an end to the record-setting fifth merger wave (Gaughan, 2007, p.3). Often, it so happens that merger and acquisition are terms that are normally confused. Sherman et al (2006, p.11) differentiates between the two terms as, Merger is the combination of two or more companies in which the assets and liabilities of the selling firms are absorbed by the buying firm and acquisition is the purchase of an asset such as a plant, a division, or even an entire company. In the broader context this differentiation is not of much concern as the final outcome is regularly alike. It is often said that any company is ready to spend thrice the money for an acquisition and these include first and foremost for the acquisition itself and then comes for the cost involved in carrying out the required changes in order to understand the benefits of acquisition and finally the loss that they have to bare due to selling of the acquisition (White, 1999). Some of the examples for this include the case of the NatWest Bank and the Barclays Bank in the earlier years. Even though the need by the finance companies for acquisitions remains the same, when it comes to the markets point of view merger stands upfront in this century. Since there has been tremendous development in the field of technology there has been progress in the direction of financial globalisation. Due to this rapid advancement in technology and other fields, the firms wouldve been capable of managing these developments well in case they were greater. This has put forward a situation were very few financial firms have gained collaborators which has made them larger. This situation is coined as the convergence theory of mergers and acquisitions (Galp in et al, 2007). White (1999) argues in support of this theory in a way that it provides immediate answer to the problem of growth. This leaves us with several questions that are unanswered. One would be to know if mergers are predictable. There has to be a purpose behind every merger. To survive and to thrive are the main purposes behind the merger of any service industry. In terms of event industry the term survival refers to the industry being taken to a global level. In the present century almost all event sectors are national with regard to satisfying the needs of the customer. But in the current event scenario it is very important for the business to go global. This leads to the fact that a consideration of global mergers is a must. If at all an event company wants to be successful at a global level then they must have a global reach. Global mergers need to push their merged entities high in the world rankings if they are to be taken seriously (White, 1999). When a event compa ny enters into global merger then they must be in a position to provide he expected services to the customers without any hassle. If at all after the merger they wont be able to meet the needs of the customers to the fullest, in that case trying and matching up with the global contender (what they offer) is a must. At times some event companies merge just as a part of their strategy whereas some others for being successful from a global perspective. This is where thrive comes into picture. A event company will; be successful only when its able to add value. White (1999) states two ways of adding value 1. Reducing inefficiencies and therefore costs and 2. making services more valuable to customers. By adding value a firm will be able to stand out and come up with something new that has never been a part of any other firm before. It is also important to consider the failure and success of mergers. Some of the factors that trigger the merger of two firms include: the work culture, nati onal identity. This in turn will result in the loss of some of the important key players and will also result in low self-confidence. Another problem that a event sector faces is the consumer relationships. Appropriate planning is required before any merger takes place. There are certain evidences of firms walking up the ladder of success when theyve had a long term planned merger. But there are also proofs of a firm being successful with a short term planned merger. The next step to be considered is the time. It is vital to look out for the right time to merge depending on the market value. The CEO of Fast Future, Rohit Talwar states that, Big events for 2010 which were cancelled during the downturn may not be replaced and hesitant customers could continue to exert a downward pressure on price. We will see a wave of closures, mergers and acquisitions across the value chain as the industry landscape starts a shakeout. In the current situation of global crisis it is quite evident for any event firm to look into M A. But they are cautious as well as they are outgrowing out of recession. In the past few years there has been a rise in the graph of acquisitions, which has provided the event industry with a chance to go international and increase their market share. White (1999) argues that mergers are not predictable and splits them into two: dumb merger and the smart merger. Whereas Gaughan (2007) splits merger into three types: horizontal, vertical and conglomerate mergers. Reasons for mergers and acquisitions: The reason for a firm to involve in mergers and acquisitions are numerous. A major drive towards this is the expansion of their firm. When a firm acquires another business it might be for several causes like trying to deviate to another line of business. Another major drive towards M A is the financial factor (Gaughan, 2007). Some other reasons could be as stated :improve capacity utilization, enhance coverage of sales force, reduce managerial staff , gain economics of scale, smooth out seasonal sales trends, gain access to new suppliers or distributors, gain new technology, reduce tax obligations (David, 2006, p.). LBO and corporate raids: Corporate Raids is one way of going about M A and the other way of doing this is by leveraged buyouts. In the second options- the company takes a loan to take the ownership of a company. This is high risk for if the bought out company does not cover the costs required in acquiring it- then the owners reputation will be dented for the company depreciates in value. Corporate raids on the other hand are the antagonistic takeover in which a firm looks out for a leveraged buyout and any firm that comes across as acquisition is taken over, while some of the firms possessions are higher than their own(Horne et al, 2008). This is not advisable when the prices of stock being high. It happens with no approval from the firm that has been taken control of. The buyers usually make a bid for the sha res, if the company if the stock of company is available on the market. So the wise thing to do would be to acquire the stock when the prices are low. So that when acquired the prices can soar and the buyers can close a profitable takeover. So in the present scenario, we dont see too many full-out company takeovers. With the credit crunch buyers would be cautious and would not risk buying out a whole company. Hence, in recent times we dont see to many full company takeovers. We have seen other variations in this to minimize risk for the acquirers. So our times have invented and even glorified exit strategy acquisitions, where only a profitable arm of the desired company is acquired. This makes more sense in our times for a whole take-over is not beneficial for the company that seeks to own a new entity. Financial synergy refers to the impact of a corporate merger or acquisition on the costs of capital to the acquiring firm or the merging partners (Gaughan, 2007, p.133). Benefits of merger and acquisition: Merger and acquisitions is one of the best ways of expanding any business: Obtaining quality staff or additional skills, knowledge of your industry or sector and other business intelligence. Accessing funds or valuable assets for new development. Your business underperforming. Accessing a wider customer base and increasing your market share. Diversification of the products, services and long-term prospects of your business. Reducing your costs and overheads Reducing competition Organic growth, i.e. the existing business plan for growth, needs to be accelerated (Business link, 2010). Don’t waste time! Our writers will create an original "The Vital Roles Of Mergers And Acquisitions Finance Essay" essay for you Create order
Friday, May 15, 2020
Cultural Revolution And Its Effect On The World Essay
Students in Cultural Revolution in 1960s China In 1960s, the wave of revolution spread all over the world, as well in China. It is said that China was experiencing an energetic and fanatical revolution from 1966 to 1976 called â€Å"Culture Revolution†which was directed against some specific fields of Culture such as foreign capitalism literature and traditional customs. The purpose of the President Mao is to consolidate the regime and clean the opponents. But how could the people believe him so easily? The answer is that most of Chinese people lacked of education and had personality cult to Chairman Mao due to China Communism Party propagation. For example, my high school teacher said every family had a portrait of Mao on the wall of their houses when he was very young. Thus it is inevitable that Mao became more and more arrogant and opinionated. He thought the restoration of capitalism and wrongly started an anti-capitalism movement from bottom people to top central leaders. The main thing he did is to eliminate all other cultures except communism. It cannot be ignored that the youth played an important role in this huge Cultural Revolution. In fact, I think the young people sometimes can be the decisive factor of any revolution in history. A revolution can be powerless if it is without the youth. The reason is that young people are energetic and in blood. They have courage to resist what make them dissatisfied. However, a vital defect they have is easily to beShow MoreRelatedChina s Cultural Revolution : China1292 Words  | 6 PagesVeronica Gregorio Hocutt ENG 2H 15 February 2016 China’s Cultural Revolution Introduction Genocide is the intentional carnage of a large group of people usually due to a particular religion or ethnicity. China’s Cultural Revolution lasted from 1966 until 1976 and dealt with Mao Zedong, the chairman of the Communist Party of China, wanting to realm the true communists. Both Night and China’s Cultural Revolution had to do with a dominant, political figure seeking the flawless race. In Night, numerousRead MoreThe Great Proletarian Cultural Revolution in China1536 Words  | 7 Pages The â€Å"Great Proletarian Cultural Revolution†or the â€Å"Cultural Revolution†had been a failed attempt at making China a stronger country. This revolution had destroyed China’s rich history. The period from 1966 to 1969 had been terrifying years in which the Red Guards used violence to purge China of any anti- communist sources. Mao Zedong had led the violence and turmoil in China after his failed attempt at the Great Leap Forward. He relied on China’s youth to change the traditional customs and ideasRead MoreThe American Renissance1169 Words  | 5 Pageslifestyle. Revolution is a fundamental change in society brought by people getting together for a common cause. Many revolutions had taken place in human history, led by different causes, situations and people. 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Elements such as scientific advancements and excavations of ancient sites, yieldedRead More`` The Destination `` By Wang Anyi950 Words  | 4 Pagesduring the Cultural Revolution. Ten years after the fact, Chen Xin views the repercussions of the Cultural Revolution internally and externally as he processes the changes that both he, and hi s hometown have over-gone in the past ten years. Devastatingly, he comes to the conclusion that there is no going back to the time of his childhood, and his fond memories of Shanghai exist solely in memory. This is in large part is due to the changes brought on by the Cultural Revolution. These effects of the CulturalRead MoreMao Zedong and Cultural Revolution1484 Words  | 6 Pagesinitiated a series of revolutions to change the way China ran, the final being the Great Proletarian Cultural Revolution starting in 1966 and ending in 1976 (1). The goal of this investigation is to determine Mao Zedong’s motives as a leader to initiate such a movement that ended up with the loss of culture, struggle between social classes, force of government, and the loss of human life (2). This investigation will describe Mao as a person, China as a country, the Cultural Revolution as a movement, andRead MoreThe Impact Of United States On America927 Words  | 4 Pagesbelieve that the p ositive impacts that United States had on America outweigh the adverse effects. Political, cultural, social and technological advances that have witnessed in America over the centuries have contributed to the United States growth. This paper seeks to discuss the impacts that the United States had on the Americans from approximately 1880s to present. Effects of United States on the economy and cultural values of America? By considering the history of America, one can recognize that theRead MoreThe Effects of the Industrial Revolution on Society Essay770 Words  | 4 PagesFrank Garrido THE EFFECTS OF THE NDUSTRIAL REVOLUTION ON SOCIETY The Industrial Revolution changed the ways by how the world produced its goods. It was the era when the use of power-driven machines was developed. It also changed our societies from a mainly agricultural society to one in which industry and manufacturing was in control. This had many effects on people’s lives. The Industrial Revolution first got its start in Great Britain, during the 18th century. It was inevitable thatRead MoreConfessions of an Economic Hit Man: A NonViolent Revolution Essay606 Words  | 3 Pagesâ€Å"A nonviolent revolution is a revolution using mostly campaigns of civil resistance, including various forms of nonviolent protest , to bring about the departure of governments seen as entrenched and authoritarian.†- Jazerra. The United States has been plungered into human desperation, relating to war and placidity, events such as the American and French revolution change also came political instability, violence, and calls for radical social change in France that frightened many Americans. WithRead MoreWhen Industry Meets the Environment Essay1475 Words  | 6 PagesThe Global Environment When Industry Meets The Environment The culture of industry has totally changed the way we see the world around us; from the structure within our cities, to the degradation of the natural environment. The industrial revolution began in Britain in 1760 (Griffin). Many historians claim this happened because of a civil unrest in the country, which transformed into a movement (Landes). Civil unrest stemmed from the poor living condition and the poverty within the
Wednesday, May 6, 2020
A Note On Student Assignment - 1619 Words
Hello! Thank you for taking your time to click on this application! Make sure to leave feedback! IGN(s) (In Game Name): aStealth Previous IGNs: mine.ly/aStealth.1 ☆â• â• â• â• â• â• â• ☆â• â• â• â• â• â• â• â• ☆Age: 13 - But I would say that I am very mature for my age. ☆â• â• â• â• â• â• â• ☆â• â• â• â• â• â• â• â• ☆Timezone: GMT +1 ☆â• â• â• â• â• â• â• ☆â• â• â• â• â• â• â• â• ☆Twitter / Telegram: Twitter: @IGNStealth Telegram: @IGNStealth ☆â• â• â• â• â• â• â• ☆â• â• â• â• â• â• â• â• ☆Do you have TeamSpeak and a working mic?: Yes, I have been using Teamspeak for at least 2 years now and I know how to fully function it. And I currently have the Blue Yeti microphone. ☆â• â• â• â• â• â• â• ☆â• â• â• â• â• â• â• â• ☆How many hours will you staff a day?: I will be dedicating a lot of my time towards the server helping new players! Here is a little table that I have†¦show more content†¦Another reason as to why I should be chosen as staff is because I am very active in Discord/TeamSpeak/In-Game/Forums! I will be helping people non stop and I am not like one of those people who gets accepted then just do nothing. I would be helping a lot of people making sure the server is clean from toxic people. I will also make the server less toxic and more fun to play on because having toxic people on a server isnt nice because there can be serious situations that can occur from time to time. Last but not least I just love helping people, in general, I would call it my hobby because its a nice thing to help people improve their time on the network. I am also good at communicating with people e.g; Listening to both sides of the situation to see what is going on. Of course if someone was shouting/screaming at me I would remain calm and positive! I know how to speak a little Spanish which may help if I froze a Spanish player or a Spanish player needed help! Do you have any previous staff experience: Yes, I do have some previous experience! ☆RiverMC☆☆Rank: Admin☆☆Mentor: Null☆☆Player Base: N/A☆☆Resignation/Demotion: Resignation☆What I learnt whilst being staff: I didnt learn a lot whilst being staff on this server because I resigned before the server released Why I resigned: I resigned because the server Owner didnt knowShow MoreRelatedIntroduction To Chemistry, A Natural Science, And Social Science1249 Words  | 5 Pagesthis study will be undergraduate students enrolled in either Introduction to Chemistry, a natural science, or General Psychology, a social science, at the University of Arkansas in Spring 2018. Students will enroll in courses based on their own academic preferences. These courses are both scheduled for 50-minute discussion sections that meet two days a week (TTh) from either 9:30 – 10:20 or 10:30 – 11: 20. All identifying features of the student (e.g. names or student ID number) will be replaced withRead MoreTechnology And Its Effects On Our Classroom Essay1452 Words  | 6 Pagespresentations, and upbeat music that teaches students a fun way to remember conjunctions, there is a lot less drool on the desks. There is much more interaction in that type of environment, because students are tired of being lectured for seven hours a day, five days a week and want a new and interesting learning technique. Schools need to have technology in all their classrooms, so students stay interested and involved. No one likes to take notes the same way everyday. â€Å"Okay everyone pleaseRead MoreEssay on Acc 291 Week 2 Wileyplus Assignment New865 Words  | 4 PagesACC 291 WEEK 2 WILEYPLUS ASSIGNMENT NEW To purchase this visit here: http://www.nerdypupil.com/product/acc-291-week-2-wileyplus-assignment-new/ Contact us at: nerdypupil@gmail.com ACC 291 WEEK 2 WILEYPLUS ASSIGNMENT NEW P8-3A, BE9-11, DI9-5, E9-7, E9-8, BYP9, P9-2A. †¢ Problem 8-3A: Bosworth Company †¢ Brief Exercise 9-11: Nike, Inc. †¢ Do It! 9-5 †¢ Exercise 9-7: Wang, Co. †¢ Exercise 9-8: Cleand Company †¢ Broadening Your Perspective 9-1: Tootsie Roll †¢ Broadening Your Perspective 9-2:Read MoreHrm 595 Week 5 Case Study 1 Capital Mortgage770 Words  | 4 Pagesage/ Contact us at: SUPPORT@ACTIVITYMODE.COM HRM 595 WEEK 5 CASE STUDY 1 CAPITAL MORTGAGE HRM 595 Week 5 Case Study 1: Capital Mortgage Insurance Corporation Assignment HRM 595 Week 5 Case Study 1: Capital Mortgage Insurance Corporation Assignment Activity mode aims to provide quality study notes and tutorials to the students of HRM 595 Week 5 Case Study 1 Capital Mortgage in order to ace their studies. HRM 595 WEEK 5 CASE STUDY 1 CAPITAL MORTGAGE To purchase this visit following link: Read MoreCis 210 Week 2 Assignment 11219 Words  | 5 PagesCIS 210 WEEK 2 ASSIGNMENT 1 To purchase this visit following link http://www.activitymode.com/product/cis-210-week-2-assignment-1/ Contact us at: SUPPORT@ACTIVITYMODE.COM CIS 210 WEEK 2 ASSIGNMENT 1 CIS210 Assignment 1: Inventory Management Systems Your sister owns a small clothing store. During a conversation at a family dinner, she mentions her frustration with having to manually track and reorder high demand items. She would like an automated system but has a very small budget. WriteRead MoreCis 210 Week 2 Assignment 11408 Words  | 6 PagesCIS 210 WEEK 2 ASSIGNMENT 1 To purchase this visit following link http://www.activitymode.com/product/cis-210-week-2-assignment-1/ Contact us at: SUPPORT@ACTIVITYMODE.COM CIS 210 WEEK 2 ASSIGNMENT 1 CIS210 Assignment 1: Inventory Management Systems Your sister owns a small clothing store. 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Tuesday, May 5, 2020
Lim Goh Tong free essay sample
Successful business are ofter managed by what type of leaders? Successful business are ofter managed by leaders who know how to mobilize their human resources (HR) to produce better products and service compared to their competitors. b) How can a change of mindset can be the pre-requisite step for building and existing entrepreneurs to stay in the business? A change of mindset can be the pre-requisite step for building and existing entrepreneurs to stay in the business because it having a positive mindset and to step up efforts to deal with constant changes and challenges in a highly competities market place. c) What are the key factors to be considered in the exercise? The key factors to be considered in the exercise are entrepreneur must be smart and resilient in mobilizing all its resources, including HR to move towards common goals and to deal with challenges that affect the business. It requires the creation the creation of a more robust and knowledge business culture with people that deeply understand the business environment. We will write a custom essay sample on Lim Goh Tong or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page d) What are the key factors to be considered in the exercise? The key factors to be considered in the exercise are considering knowledge as a factor that can make a distint difference and identifying emerging key and new method of conducting business and making it more competitive. e) What the factors to achieve entrepreneurial success to sharpen a company’s competitive adge? The factors to achieve entrepreneurial success to sharpen a company’s competitive adge depends on the ability to attract, retain and develop competent people continuously. f) Why is having leadership ability is important? Having leadership ability is important because it stand in good stead for the entrepreneur to help worker in problem-solving as well as to provide guidance on the right work ethics and maximize the employee’ performance. g) How to be a successful entrepreneur? To be a successful entrepreneur , one should have the ability to plan, arrange and control the business in every aspect. . Based on your understanding, give one example of successful entrepreneur in Malaysia. That constributes a lot in Malaysia economy. Give the strength of his (her) product/service. Lim Goh Tong is classic story of a rag-to-riches story. He migrated from China mainland in his youth. And as fate would have it, the two later became friends when he was on his way to build Genting. From the day he was born until his death, Lim Goh Tong did not speak English, he only communicated in Chinese and Malay language. But his language barrier did not prevent him from negotiating one of the largest contracts around. Financial. His strength could be seen from his early age involved in petty trade. He always keeps some of his revenue for future used and increases his capital. 2. Intellectual . Lim Goh Tong always did a survey and made a feasibility study whether to project to be taken really produce profit or loss. He will not close the deals unless money back guaranteed. 3. Location . Choice of location is gave him ahead of others. Genting Resort was built to encourage local people to enjoy breezy environment near Kuala Lumpur. 4. Diversification on Product Offered. Genting Group has diversified from its initial hotel and resort activities to plantations, properties, paper manufacturing, power generation, oil and gas, electronic commerce and information technology development under Genting Group. 5. Government Rule and Regulation. Genting was extremely advantage after government announced in October 2002 to restrict development of highlands. It will create no competition for Genting Group on their resort business. 6. Product Diversification . Lim Goh Tong knows to play his card. He is not dependent on his Casino business. He has Conglomerate Company dealing in Star Cruise, Property Development, Education, Construction, Oil and Gas, Investment, Plantation, Independent Power Industry and Hospitality. He has well diversified revenue and will not worry on economic trend if collapse in certain industry. 6. Favorable access to distribution net works. Lim Goh Tong relationship with all the Prime Minister of Malaysia make his job easy. He received a pioneer status from Tun Abdul Razak on his Genting business. In 1976 the status was extended another year by Tun Hussin Onn through Tan Sri Mohd Noah who is in-law to Razak and Hussin Onn. 7. Market Trend. Lim Goh Tong always follow the trend from his early involvement in construction industry. After WW2 he bought all unused heavy machinery and reconditioned it before it was sold to tin miner and rubber Estate Company for their rehabilitation work.
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