Globally most of the companies started a new tendency of either combining firms or buying of one company by the other for obtaining additional benefits and technology. This is referred to as Merger and Acquisition. Their history helps to understand the evolution of the M&A's in the world.
In USA, mergers and acquisitions started in 20th century. After which M&A's continued to occur in cycle and these cycles of M&A's took place in USA in the year 1929, in the latter half of 1960's and in the first half of 1980's.. A Cycle refers to the period in which the maximum number of mergers and acquisitions took place.
The most significant mergers in the US occurred in the last half of 1990's and the idea behind this was that, the stock market was quite strong in the US in during this period. This strong market supported the high incidence of mergers and acquisitions. The M&A'S of this period involved big brands and huge amount of dollars.
[...] DePamphilis ) REASONS FOR MAKING MERGERS AND ACQUISITIONS: As many of the mergers and acquisitions boosted the performance of a company and addressed the well-being of its shareholders .There are reasons for making an acquisition For acquiring complementary products to broaden the line 2. For acquiring new markets 3. For acquiring benefit from economies of scale 4. For acquiring technology to replace the currently used one (Source: Mergers & Acquisitions , Vadim Kotelnikov ) 5. For improving innovation 6. For improving profitability 7. [...]
[...] Seven Essential Steps of Merger and Acquisition Excellence are: Pre Merger: Cultural DNA Due Diligence: Collaborating on an integration strategy Step Involvement and Engagement: Dreaming the dream of the future and Formulating New Identity formulation Step Shared Vision: Expanding the vision from mine to ours and giving it life Step Analysis: Evaluation f current reality with regard to strategy Step Action: Cascading the process by creating ownership in the process Step Implementation: Building and creating energy Step Maintenance: Focusing direction and energy of corporate New Identity Step Renewal: Re-evaluation and re-creation Finally, RepeatStep 1 ( Source: Sandy Weiner and Roberta Hill, sep/oct 2008 ) GUIDELINES FOR THE EMPLOYEES FOR SURVIVING A MERGER OR ACQUISITION: Merger and Acquisitions have their great impact on employees of the merged or acquired companies. [...]
[...] E.g.: Delaware allows a parent corporation to merge without a shareholder vote with a subsidiary if the parent owns at least 90 percent of the outstanding voting shares. STATUTORY MERGER: It is the one in which the acquiring company assumes the assets and liabilities of the target in accordance with the statutes of the state in which the combined companies will be in corporated. SUBSIDIARY MERGER: It involves the target becoming a subsidiary of the parent whereas the target firm may be operated under its brand name to the public but will be owned by the acquirer. [...]
[...] If this is done effectively, the process appears faultless with minimal stress. Mainly we have three processes in Merger. They are: Pre-Merger Process Merger Process Post Merger Process Pre-Merger Process targets companies that are good cultural match, have compatible values and are in line with achieving corporate strategy. This begins the integration with good planning and trust building. It brings two companies together implementing the idea of culture of engagement. Merger Process creates shared vision at each level of organization and expands on integrated strategy. [...]
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