Mergers allow partner organizations to be established under a single parent company, while acquisition is the purchase of a competitor or business of value in exchange for all rights to operation and profits. M&A success is dependent how a transaction is financed. Acquisition firms also tend to experience detriments during initial transition if M&A due diligence has not been properly performed. If strategy and organizational management coalesces in short-term returns, it is generally a sign that organic growth has been the result of an economically priced M&A or joint venture investment.
The hostile takeover scenario is an acquisition by one party without the knowledge of the target. Majority purchase of preferred shares creates the conditions for “sale” as shares are express contracts intended for transaction.
Merger and acquisition law focuses on the history of litigation between two entities. When two entities that were once adverse parties in a legal matter over liability, or issues related to conflict of interest forge such an agreement, it generally results either in the new holding as either a wholly owned subsidiary or division of the parent company.
Lars Håkans, Hans Engell, Jokke, Bengt Baron, and John Dunn discuss M&A investment models and takeover strategies in Mergers and Acquisitions: The Mind of a Leader 1. Part of the The Mind of a Leader 1 series, the program examines the investment formula used by successful, multinational acquisition firms. Case studies illustrating how business leaders create exponential returns from newly acquired organizations provide insights.Mergers and Acquisitions: The Mind of a Leader 1
- ISBN 978-1-62290-196-8
- Run Time (28 Minutes)
- Copyright 2011
- Closed Captioned (CC)