There has been a new surge of mergers and acquisitions (M and A) in the last several years. Why is this? In the past, why have so many not been successful? In your opinion, what are the most important factors to be taken into account for a successful M and A? Provide an example to support your position.

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Trinidad TremblayLv2

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

There is a surge of mergers and acquisitions among televisionnetworks, entertainment, and internet-related companies since 2010.Some have been completed, some have been stopped by regulators, andothers are still in progress. How are these different from theAOL-Time Warner merger of the year 2000? Are the recent mergers andacquisitions likely to be successful? Why or why not?

rubymink232

Free trade has generally been seen as a positive for firms, consumers etc. Over the past several decades, efforts for the most part have been taken around the globe to remove trade barriers to achieve âfree tradeâ. Some high level executives have made statements implying free trade is not conceivable due to exchange rates. It is often claimed that despite treaties removing trade barriers any country can use the exchange rate mechanism to impose trade barriers. Briefly explain what is meant by that statement and provide a two country fictional example of how this would work.

amethystzebra185

Consider the complex social factors that make a merger a success according to the resource-based view.

Read the case below and answer the questions that follow.

It’s a widely reported fact—the biggest reason for merger failures is the incompatibility of the company cultures. What makes a business an attractive merger partner may be due to the company’s social complexities, based on decision-making practices, communication styles, and work history together. It is often assumed, however, that companies will simply change how they interact and work together after they merge, but will they still be successful? Since more than 80 percent of mergers fail, this question is an important one.

One company with several successful mergers is Vocus (now Cision Inc.), a public relations and marketing software and online services company. As the cloud computing market blossomed, Vocus knew its culture was unique, with offices designed as a small seaside town, emphasizing fun and open communication. The office board room was labeled “Bored Room.” Standing committees included “It’s All About You,” promoting a positive work environment, and “It’s Not About You,” focused on community service. Vocus sought to acquire companies with similar cultures and styles, rather than seeking to change or combine cultures. Vocus realized that the merger partners’ success was intertwined in their complex relationships, social histories, and decision styles. CEO Rick Rudman stated that it was necessary to be “proactive” in the merger process. For example, he made sure the office layout and communication styles were similar in merger partners.

As the cloud computing market continued to grow and consolidate, the Swedish company Cision AB merged with Vocus to form a new company in 2014 called Cision Inc. The new company relocated to Chicago and retained many of the cultural aspects that were important to Vocus. The Cision Inc. website states, “We design our offices with employees in mind. Our shared spaces help you connect, work together as a team and solve challenges.” Cision Inc. also continues to promote community service among employees and still produces the company publication, inVocus.

The success of Vocus/Cision was in “proactively” maintaining the social complexities of the company that made it successful.

Complete the multiple-choice question. Select the best answer.

The merger strategy of Vocus was based on what model?

a) The rule of one-eighth

b) Inimitability theory

c) IPO theory

d) High-performance practices

e) Resource-based view

copperkoala928

Weekly leaderboard

Home

Homework Help 3,900,000

Finance 370,000