BA 100 Lecture Notes - Investment Banking, Bucyrus-Erie, Brand Equity
Document Summary
By the end of this unit, you should be able to: explain the concept of mergers and acquisitions, explain the different forms of mergers and acquisitions, examine the reasons companies merge and acquire, evaluate the challenges associated with mergers and acquisitions. The decrease in business activity and the fall in the production volume in the sectors of economy relying on long-term crediting is characteristic feature of the modern recessions. The pessimistic expectations of entrepreneurs concerning product demand leads to falling direct into business despite unlimited investment opportunities due to the developed capital markets nowadays. As a result it has created the opportunity for the development of the acquisition of enterprises. Potential investors are different and their investment motivation is different, but the goal is the same to increase the value of the business and its efficiency as a result of mergers and acquisitions. However, purchasable enterprises are exposed to several financial risk factors.
