Mergers and Acquisitions in China as one of the investment vehicles available for foreign investors and market entry strategy to break into Chinese market. What are the main issues and aspects to carefully take into consideration? What are the alternatives to M&A operations to achieve the same goals in China?
Corporate debt policy remained a significant, but a challenging decision for managers entrusted with the responsibility to improve the value of the firm. Thus, this study examines the factors influencing the capital structure decisions of firms in Nigeria. The study employs a panel data regression model to analyze data from firms in Nigeria for the period 2011 to 2015. The result of the empirical analysis reveals that firms in Nigeria have a preference to finance economic operations from retained earnings and the use of short-term debt on rollover basis. The finding of this study confirms that debt decreases with profitability and growth opportunities. The findings show that asset tangibility and firm size have a positive and significant relationship with debt policy of firms in Nigeria. The analysis also reveals that managerial ownership has a negative and significant relationship with debt ratio of firms in Nigeria. The study shows a non-significant positive relationship between non-debt tax shields and debt. The study demonstrates that the trade-off and pecking order theories both explains the factors influencing capital structure decisions of firms in Nigeria. Therefore, this study suggests the need for stakeholders to develop the financial markets and make it accessible for firms to obtain long-term financing for economic growth and development.
Venture Capital Investing Maintains Steady Pace in Q3 2003mensa25
Venture capital investing maintained a steady pace in Q3 2003, with $4.2 billion invested in 667 companies. This represents a slight decline from Q2 2003 but an uptick from Q1 2003. For the past 5 quarters, venture capital investment has remained around $4 billion per quarter. The life sciences sector, including biotechnology and medical devices, received 30% of total funding and showed continuing strength. Biotechnology was the top funded industry for the first time in 7 years, surpassing software. Venture capitalists continued to invest most funds in expansion stage companies but maintained a balanced approach across all stages of development.
Venture Capital Investments Q4 06 - MoneyTree mensa25
Venture capital investing in the US hit $25.5 billion in 2006, a 10% increase in deal volume and 12% increase in dollar value from 2005. Life sciences saw the most growth, with biotech and medical devices reaching record high levels. Expansion stage companies and first-time financings also increased significantly. Software and industrial/energy sectors also experienced growth, while networking/equipment, computers, and financial services declined.
TIP on Tax: New rules may ease burden for small shareholders in tech acquisit...Grant Thornton LLP
This is the fourth installment of TIP on Tax, a series from Grant Thornton LLP’s Technology Industry Practice (TIP). The series introduces key tax issues for dynamic technology companies. In our first article, we explored strategies for managing net operating losses (NOLs) generated in the startup phase. More at: http://gt-us.co/TIPonTax
This document discusses leveraged buyouts (LBOs) and how high-ratio asset-based loans can help finance them. It outlines the appeal of LBOs, including high potential returns from nominal equity investments. Finding an LBO opportunity and financing it is difficult. Typically financing includes an operating line of credit, term facility, and subordinated debt. A high-ratio asset-based loan can bridge the gap between the term lender and subordinated debt by providing a higher lending ratio against assets. This helps equity investors complete transactions without expensive venture capital. The document contrasts high-ratio asset-based lending with conventional asset-based cash flow lending.
DealMarket Digest Issue137 - 17 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 137 - April 17th, 2014:
- Cravings for Direct Co-Investment Still Strong
- Narrow Niches and Big Returns
- Australian PE Backed IPOs Outperform
- The Traits of Family Wealth Managers That Make Money…. and Lose it
- CEOs Get M&A Fever Again
- Quote of the Week: Betting on Justice
Mergers and Acquisitions in China as one of the investment vehicles available for foreign investors and market entry strategy to break into Chinese market. What are the main issues and aspects to carefully take into consideration? What are the alternatives to M&A operations to achieve the same goals in China?
Corporate debt policy remained a significant, but a challenging decision for managers entrusted with the responsibility to improve the value of the firm. Thus, this study examines the factors influencing the capital structure decisions of firms in Nigeria. The study employs a panel data regression model to analyze data from firms in Nigeria for the period 2011 to 2015. The result of the empirical analysis reveals that firms in Nigeria have a preference to finance economic operations from retained earnings and the use of short-term debt on rollover basis. The finding of this study confirms that debt decreases with profitability and growth opportunities. The findings show that asset tangibility and firm size have a positive and significant relationship with debt policy of firms in Nigeria. The analysis also reveals that managerial ownership has a negative and significant relationship with debt ratio of firms in Nigeria. The study shows a non-significant positive relationship between non-debt tax shields and debt. The study demonstrates that the trade-off and pecking order theories both explains the factors influencing capital structure decisions of firms in Nigeria. Therefore, this study suggests the need for stakeholders to develop the financial markets and make it accessible for firms to obtain long-term financing for economic growth and development.
Venture Capital Investing Maintains Steady Pace in Q3 2003mensa25
Venture capital investing maintained a steady pace in Q3 2003, with $4.2 billion invested in 667 companies. This represents a slight decline from Q2 2003 but an uptick from Q1 2003. For the past 5 quarters, venture capital investment has remained around $4 billion per quarter. The life sciences sector, including biotechnology and medical devices, received 30% of total funding and showed continuing strength. Biotechnology was the top funded industry for the first time in 7 years, surpassing software. Venture capitalists continued to invest most funds in expansion stage companies but maintained a balanced approach across all stages of development.
Venture Capital Investments Q4 06 - MoneyTree mensa25
Venture capital investing in the US hit $25.5 billion in 2006, a 10% increase in deal volume and 12% increase in dollar value from 2005. Life sciences saw the most growth, with biotech and medical devices reaching record high levels. Expansion stage companies and first-time financings also increased significantly. Software and industrial/energy sectors also experienced growth, while networking/equipment, computers, and financial services declined.
TIP on Tax: New rules may ease burden for small shareholders in tech acquisit...Grant Thornton LLP
This is the fourth installment of TIP on Tax, a series from Grant Thornton LLP’s Technology Industry Practice (TIP). The series introduces key tax issues for dynamic technology companies. In our first article, we explored strategies for managing net operating losses (NOLs) generated in the startup phase. More at: http://gt-us.co/TIPonTax
This document discusses leveraged buyouts (LBOs) and how high-ratio asset-based loans can help finance them. It outlines the appeal of LBOs, including high potential returns from nominal equity investments. Finding an LBO opportunity and financing it is difficult. Typically financing includes an operating line of credit, term facility, and subordinated debt. A high-ratio asset-based loan can bridge the gap between the term lender and subordinated debt by providing a higher lending ratio against assets. This helps equity investors complete transactions without expensive venture capital. The document contrasts high-ratio asset-based lending with conventional asset-based cash flow lending.
DealMarket Digest Issue137 - 17 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 137 - April 17th, 2014:
- Cravings for Direct Co-Investment Still Strong
- Narrow Niches and Big Returns
- Australian PE Backed IPOs Outperform
- The Traits of Family Wealth Managers That Make Money…. and Lose it
- CEOs Get M&A Fever Again
- Quote of the Week: Betting on Justice
The document discusses various aspects of mergers and acquisitions including:
1. It outlines the typical M&A process including preparing due diligence materials, negotiating letters of intent, conducting detailed due diligence, finalizing agreements, and integrating post-closing.
2. It describes two common M&A transaction structures - a stock purchase where the buyer acquires ownership of all assets and liabilities, and an asset purchase where the buyer purchases specific assets and assumes agreed upon liabilities.
3. The advantages and disadvantages of each structure are summarized, such as a stock purchase being quicker but requiring shareholder consent, while an asset purchase allows selective asset and liability assumption but requires more third party consents.
This document provides a summary of recent accounting and tax updates relevant to not-for-profit organizations, including updates from the FASB, GASB, and OMB. It covers new standards and guidance on consolidation, debt issuance costs, retirement benefits, cloud computing arrangements, fair value measurements, and the 2015 OMB Compliance Supplement. The briefing is intended to keep audit committee members informed of changes impacting not-for-profits.
Venture capital investing reached its highest level since 2002 in Q2 2006, with $6.3 billion invested across 856 deals. This represented a 2% increase in dollars and 5% increase in deals from the previous quarter. Biotechnology saw the largest gains, with 112 deals and 34% more dollars than Q1. Seed/early stage deals and expansion stage dollars both grew from Q1 as well. The number of first-time financings reached a five-year high.
Cultural Issues In Asia Private Equity and Venture Capital TransactionsPamir Law Group
Current trends in venture capital and private equity in Asia include:
1) Understanding local business culture, regulatory environments, and how parties evaluate comparative advantages is key to successful deals.
2) Knowing the concerns, goals, decision-making dynamics and motivations of local parties helps structure optimal deals.
3) Common issues include preference for relationships over contracts, family-owned businesses, tax havens, hierarchy, and incentivizing good behavior through penalties rather than rewards.
Banking M&A in Asia: Horizontal mergers
Presented/to be presented at
24th Annual Global Finance Conference at the Hofstra University Student Center
SERCONF 2017, August 2-4 at Hotel Mandarin, Singapore
CMES 2017 :- China meeting of the Econometric Society at Wuhan
After the acquisition: 5 steps to manage the tax processGrant Thornton LLP
A detailed plan is critical to accomplishing all the tax-related tasks that need to occur in the months after an M&A transaction closes. Your 100-day plan for managing the tax process should include five key steps.
Venture capital investing in 2005 was steady at $21.7 billion, matching the 2004 level and holding gains from previous years. Later stage deals and first-time deals both reached four-year highs, while emerging sectors like wireless saw increases, though still small overall. The venture capital environment remains receptive to entrepreneurs, with solid traditional investing complementing growth in promising new areas.
1) The document discusses how differences in legal and financial systems across countries affect firms' ability to obtain external financing to fund growth.
2) It finds that countries with more efficient legal systems, as well as active stock markets and large banking sectors, see a greater proportion of firms relying on long-term external financing like debt and equity to fund growth.
3) This is partly because firms in countries with well-functioning institutions have lower profit rates, making them more reliant on external capital to finance investment and growth opportunities.
Venture Capital Investment Q3 '06 - MoneyTree mensa25
Venture capital investing remained above $6 billion for the third consecutive quarter, with $6.2 billion invested in 797 deals. Seed/Early stage deals saw increased investment of 10% while Later stage deals declined. Biotechnology surpassed Software as the top industry sector with $1.14 billion invested. Telecommunications also saw strong growth with $848 million invested, its best quarter since 2002.
Fall, 2009 1st draft Professional Issues Update for CPAs - focusing on Top 5 Trends: Economy, Regulations/Standards, Globalization, Workforce, Technology
Us mergers-acquisitions-2018-trends-reportUmang Patel
Corporate executives and private equity firms foresee increased M&A activity in 2018, with more deals and larger deal sizes compared to 2017. Executives expect deal volume and size to increase, driven by strategic factors like acquiring new technology and expanding digital strategies. Fewer deals are missing financial targets as executives improve integration practices and use new M&A analysis tools. However, some executives remain concerned that delays in business-related legislation could impact dealmaking in 2018.
Determinates of capital structure in the retailing sectorAisha Dalmouk
This document summarizes a study examining the determinants of capital structure in UK firms. Section 1 introduces the topic and outlines the subsequent sections. Section 2 discusses theoretical perspectives on capital structure. Section 3 describes the database and variables. Section 4 details the results of regressing various measures of gearing on determinants like size, profitability and tangibility. Section 5 further decomposes the debt components and Section 6 concludes.
This document discusses a study on the determinants of capital structure for Pakistani textile companies. Specifically, it analyzes 30 spinning sector companies listed on the Karachi Stock Exchange from 2004-2009. Size, growth, financing costs, profitability, and tangibility are examined as independent variables influencing leverage, the dependent variable. The results found that smaller Pakistani spinning companies prefer internal financing over external financing due to their size and capitalization.
This document discusses identifying and analyzing opportunities for domestic and international expansion of a venture. It covers several key areas: developing an opportunity assessment plan to evaluate new opportunities; various information sources for researching industries, markets, and competitors; differences between domestic and international entrepreneurship such as economic conditions, political environments, and cultural factors; motivations and strategic effects of going global; methods for selecting foreign markets and entry strategies; and tips for partnering with foreign entrepreneurs.
The paper explains the mechanism of Reverse Mergers in great detail. It deals with an explanation of
Reverse Mergers, their advantages over traditional IPO route, the actual process involved in a reverse merger
and SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) of this method. Further, the paper
discusses the global scenario with respect to this mechanism, particularly in countries like United States and
China where it is highly preferred for public listing.
The paper also details this concept with respect to its acceptance in our country, India, where traditional
methods like IPOs are losing relevance and newer faster methods for public listing and fund raising are gaining
importance with each passing year. For greater understanding, some case studies have been used spanning
various companies which have taken this route for public listing and have reaped great benefits from it. The
paper also highlights the ill effects attached with Reverse Mergers if not done properly and without enough
checks and audits
Capital Structure Determination, a Case Study of Sugar Sector of Pakistan Fa...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Role of due diligence in mergers and acquisitionChenoy Ceil
Due diligence is the process of evaluating a potential merger or acquisition by investigating financial, legal and other material information. It helps identify risks and structure the transaction. Key aspects of due diligence include analyzing company documents, reports, contracts and intellectual property. Conducting due diligence helps validate the business plan and mitigate risks to make the transaction successful. It is an ongoing process that continues throughout the alliance between the merging companies.
IFN Takaful M&A Challenges - 13 August 2014Mujtaba Khalid
The document discusses mergers and acquisitions (M&As) in the Takaful (Islamic insurance) industry. It outlines that while M&A activity can help Takaful companies learn from conventional insurers, international Takaful M&As face several challenges, including regulatory uncertainty across jurisdictions, lack of standardized Shariah and risk management controls, and complex deal structures that take longer due to Shariah compliance needs. Capital requirements and alternative uses of capital by conventional insurers have also reduced appetite for cross-border M&A deals in Takaful. However, international insurers may eventually turn to high-growth Takaful markets to achieve higher returns than in saturated markets.
Market information and stock returns the nepalese evidenceSudarshan Kadariya
This is a work done for the academic fulfillment purpose. The study have assumptions. The findings are suggested to related with its assumptions. I believe this work will help the financial / stock market in Nepal and it will also be accessible and share some features to the international financial market researchers.
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
This document contains summaries of several case studies from a business ethics textbook. The first case study describes the moral philosophy of Socrates and how he refused to escape prison to face an unjust execution, believing it was more important to uphold moral principles. The second case summarizes a case where Chinese milk producers intentionally added a toxic chemical to milk for profit, which killed and sickened many children before being discovered.
The document discusses various aspects of mergers and acquisitions including:
1. It outlines the typical M&A process including preparing due diligence materials, negotiating letters of intent, conducting detailed due diligence, finalizing agreements, and integrating post-closing.
2. It describes two common M&A transaction structures - a stock purchase where the buyer acquires ownership of all assets and liabilities, and an asset purchase where the buyer purchases specific assets and assumes agreed upon liabilities.
3. The advantages and disadvantages of each structure are summarized, such as a stock purchase being quicker but requiring shareholder consent, while an asset purchase allows selective asset and liability assumption but requires more third party consents.
This document provides a summary of recent accounting and tax updates relevant to not-for-profit organizations, including updates from the FASB, GASB, and OMB. It covers new standards and guidance on consolidation, debt issuance costs, retirement benefits, cloud computing arrangements, fair value measurements, and the 2015 OMB Compliance Supplement. The briefing is intended to keep audit committee members informed of changes impacting not-for-profits.
Venture capital investing reached its highest level since 2002 in Q2 2006, with $6.3 billion invested across 856 deals. This represented a 2% increase in dollars and 5% increase in deals from the previous quarter. Biotechnology saw the largest gains, with 112 deals and 34% more dollars than Q1. Seed/early stage deals and expansion stage dollars both grew from Q1 as well. The number of first-time financings reached a five-year high.
Cultural Issues In Asia Private Equity and Venture Capital TransactionsPamir Law Group
Current trends in venture capital and private equity in Asia include:
1) Understanding local business culture, regulatory environments, and how parties evaluate comparative advantages is key to successful deals.
2) Knowing the concerns, goals, decision-making dynamics and motivations of local parties helps structure optimal deals.
3) Common issues include preference for relationships over contracts, family-owned businesses, tax havens, hierarchy, and incentivizing good behavior through penalties rather than rewards.
Banking M&A in Asia: Horizontal mergers
Presented/to be presented at
24th Annual Global Finance Conference at the Hofstra University Student Center
SERCONF 2017, August 2-4 at Hotel Mandarin, Singapore
CMES 2017 :- China meeting of the Econometric Society at Wuhan
After the acquisition: 5 steps to manage the tax processGrant Thornton LLP
A detailed plan is critical to accomplishing all the tax-related tasks that need to occur in the months after an M&A transaction closes. Your 100-day plan for managing the tax process should include five key steps.
Venture capital investing in 2005 was steady at $21.7 billion, matching the 2004 level and holding gains from previous years. Later stage deals and first-time deals both reached four-year highs, while emerging sectors like wireless saw increases, though still small overall. The venture capital environment remains receptive to entrepreneurs, with solid traditional investing complementing growth in promising new areas.
1) The document discusses how differences in legal and financial systems across countries affect firms' ability to obtain external financing to fund growth.
2) It finds that countries with more efficient legal systems, as well as active stock markets and large banking sectors, see a greater proportion of firms relying on long-term external financing like debt and equity to fund growth.
3) This is partly because firms in countries with well-functioning institutions have lower profit rates, making them more reliant on external capital to finance investment and growth opportunities.
Venture Capital Investment Q3 '06 - MoneyTree mensa25
Venture capital investing remained above $6 billion for the third consecutive quarter, with $6.2 billion invested in 797 deals. Seed/Early stage deals saw increased investment of 10% while Later stage deals declined. Biotechnology surpassed Software as the top industry sector with $1.14 billion invested. Telecommunications also saw strong growth with $848 million invested, its best quarter since 2002.
Fall, 2009 1st draft Professional Issues Update for CPAs - focusing on Top 5 Trends: Economy, Regulations/Standards, Globalization, Workforce, Technology
Us mergers-acquisitions-2018-trends-reportUmang Patel
Corporate executives and private equity firms foresee increased M&A activity in 2018, with more deals and larger deal sizes compared to 2017. Executives expect deal volume and size to increase, driven by strategic factors like acquiring new technology and expanding digital strategies. Fewer deals are missing financial targets as executives improve integration practices and use new M&A analysis tools. However, some executives remain concerned that delays in business-related legislation could impact dealmaking in 2018.
Determinates of capital structure in the retailing sectorAisha Dalmouk
This document summarizes a study examining the determinants of capital structure in UK firms. Section 1 introduces the topic and outlines the subsequent sections. Section 2 discusses theoretical perspectives on capital structure. Section 3 describes the database and variables. Section 4 details the results of regressing various measures of gearing on determinants like size, profitability and tangibility. Section 5 further decomposes the debt components and Section 6 concludes.
This document discusses a study on the determinants of capital structure for Pakistani textile companies. Specifically, it analyzes 30 spinning sector companies listed on the Karachi Stock Exchange from 2004-2009. Size, growth, financing costs, profitability, and tangibility are examined as independent variables influencing leverage, the dependent variable. The results found that smaller Pakistani spinning companies prefer internal financing over external financing due to their size and capitalization.
This document discusses identifying and analyzing opportunities for domestic and international expansion of a venture. It covers several key areas: developing an opportunity assessment plan to evaluate new opportunities; various information sources for researching industries, markets, and competitors; differences between domestic and international entrepreneurship such as economic conditions, political environments, and cultural factors; motivations and strategic effects of going global; methods for selecting foreign markets and entry strategies; and tips for partnering with foreign entrepreneurs.
The paper explains the mechanism of Reverse Mergers in great detail. It deals with an explanation of
Reverse Mergers, their advantages over traditional IPO route, the actual process involved in a reverse merger
and SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) of this method. Further, the paper
discusses the global scenario with respect to this mechanism, particularly in countries like United States and
China where it is highly preferred for public listing.
The paper also details this concept with respect to its acceptance in our country, India, where traditional
methods like IPOs are losing relevance and newer faster methods for public listing and fund raising are gaining
importance with each passing year. For greater understanding, some case studies have been used spanning
various companies which have taken this route for public listing and have reaped great benefits from it. The
paper also highlights the ill effects attached with Reverse Mergers if not done properly and without enough
checks and audits
Capital Structure Determination, a Case Study of Sugar Sector of Pakistan Fa...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Role of due diligence in mergers and acquisitionChenoy Ceil
Due diligence is the process of evaluating a potential merger or acquisition by investigating financial, legal and other material information. It helps identify risks and structure the transaction. Key aspects of due diligence include analyzing company documents, reports, contracts and intellectual property. Conducting due diligence helps validate the business plan and mitigate risks to make the transaction successful. It is an ongoing process that continues throughout the alliance between the merging companies.
IFN Takaful M&A Challenges - 13 August 2014Mujtaba Khalid
The document discusses mergers and acquisitions (M&As) in the Takaful (Islamic insurance) industry. It outlines that while M&A activity can help Takaful companies learn from conventional insurers, international Takaful M&As face several challenges, including regulatory uncertainty across jurisdictions, lack of standardized Shariah and risk management controls, and complex deal structures that take longer due to Shariah compliance needs. Capital requirements and alternative uses of capital by conventional insurers have also reduced appetite for cross-border M&A deals in Takaful. However, international insurers may eventually turn to high-growth Takaful markets to achieve higher returns than in saturated markets.
Market information and stock returns the nepalese evidenceSudarshan Kadariya
This is a work done for the academic fulfillment purpose. The study have assumptions. The findings are suggested to related with its assumptions. I believe this work will help the financial / stock market in Nepal and it will also be accessible and share some features to the international financial market researchers.
We are very honored to be able to invite the Senior Managing Director of FTI Consulting (FCN US, MV $1.5bn), a billion-dollar NYSE-listed global forensic consulting firm, as a guest speaker in our SMU classes to share his knowledge and wisdom with the students in the Accounting Fraud in Asia course in Week 6, the week of 9th February. Over the years in the Asian capital jungles, the FTI people are amongst the few professionals whom I respect for their on-the-field expertise and thought leadership in the area of fraud and forensic investigation. I am sure that the talk will definitely make an impact for our SMU students who will learn not only invaluable lessons from the speaker’s knowledge and wisdom but also about FTI Consulting as their future career choice.
This document contains summaries of several case studies from a business ethics textbook. The first case study describes the moral philosophy of Socrates and how he refused to escape prison to face an unjust execution, believing it was more important to uphold moral principles. The second case summarizes a case where Chinese milk producers intentionally added a toxic chemical to milk for profit, which killed and sickened many children before being discovered.
Case study Business ethics, Being Smart about Smartphones Fatima Aljaidi
The document discusses several ethical issues related to smartphone use in the workplace:
1) Smartphones can distract employees and cause them to miss deadlines from time spent on phones.
2) Employer monitoring of employee phone use raises privacy issues regarding personal usage of company networks.
3) Using company WiFi and time for personal reasons improperly allocates company resources.
The document suggests companies create clear policies around appropriate smartphone use at work, including allowing personal use during breaks but requiring work-related use during meetings with permission. Rules should also distinguish between in-house and client meetings, using separate phones in the latter case.
Smartphone usage has increased significantly in recent years and has positively impacted education, communication in the workplace, and productivity. Smartphones allow for increased social engagement through access to social networking sites on the go. They have also helped improve education by enabling students to research and access information for schoolwork. In the workplace, smartphones facilitate communication through email and business applications from any location. Productivity has risen as well since smartphones allow users to work remotely by performing normal computer functions outside the office.
A security feature can be effective only if the user can use it effectively and the configuration settings are unambiguous. A complicated UI leads to most of the configuration errors. Most of the computer security failures find its genesis in the configuration errors.
The advent of Internet and ease of communication has thrown up the many such challenges; one of them being the security concerns about the data stored and transmitted. With the advent of hand phones, the security concerns have moved one notch up because mobile phones and especially smart phones are not merely devices for communication, but virtual identity databases. Though there has been a steady progress on the technological front, the user-interfaces are yet to become up to the mark for the end-user. Most of the UIs are complicated and confusing which leads the user to commit errors and hence becomes a security nightmare. Our view is that the security and usability share an inverse relation. If the usability of the system is low, the security features are mostly ignored by the users as that seems the most convenient thing to do. However, in case of UI with high usability factor, the designers have to compromise over a lot of security features to make it usable.
According to us, the missing link seems to be the absence or adaptation of a common standard for UI across the platforms. This study compares three most popular OS platforms for smart devices Android by Google, iOS by Apple and Windows by Microsoft on the basis of their usability factors in context of security features provided by them. This summary should help develop a model for future UI developers.
Discusses Major Compensation Issues regarding Executive Compensation. Provides Justification for Unreasonable Executive Compensation and Outlines measures for Executive Accountability
Ethics Case Study Review_JKostak_APA_StyleJohn Kostak
This document provides a summary and analysis of ethics issues arising in modern networked businesses. It discusses how the integration of corporate, social, and community networks blurs traditional information boundaries and policies. Key points addressed include:
- New stakeholders and dynamic engagement models require updated communications strategies.
- Ethics and governance issues become interwoven across functions as lines are blurred.
- Network security vulnerabilities increase with virtual networks, requiring updated privacy and security policies.
- There must be a balancing of customer privacy, security needs, and transparency demands with business interests.
- A new "Virtual Enterprise Ethics Engagement Model" is proposed to define and manage ethics in integrated virtual networks.
This document discusses a decision made by Tyco International in response to a situation facing the organization. The situation involved misconduct by former CEO Dennis Kozlowski and CFO Mark Swartz, who were sued by the company for over $100 million after improper financial activities. A new CEO and management team made decisions to reform corporate governance and accounting practices. A group including the new CEO and VP of Governance made the final decisions, which included severance agreement reforms, an independent board chair, an ethics guide, and staff replacements. The implications were more ethical leadership and restored investor faith.
The document discusses how low-cost smartphones have enabled widespread use of mobile apps in India. It notes that 40 million Indians access the internet through mobile phones, with 30 million mobile app downloads per week. Most users are aged 18-29. Smartphones have benefited job portals, travel portals, social networking, the film industry, advertisers, e-commerce firms, and government and banking sectors by allowing them to reach a broader customer base. The smartphone revolution untaps rural markets and encourages businesses to diversify into e-commerce.
The document discusses advertising and its purpose as a multi-billion dollar industry that companies spend millions on each month to create demand for their products. It has created many advertising businesses and advertising can now be found everywhere, including newspapers, television, radio, the internet, billboards, and video games. The document outlines discussion questions and presentation requirements on the topic of ethics in advertising.
The document discusses perception, whistleblowing, and a case study involving whistleblower Douglas Durand. It provides definitions of perception and whistleblowing. It describes Durand blowing the whistle on pharmaceutical company TAP for illegal kickbacks. Though initially vindicated, holes later emerged in Durand's story and TAP was cleared of charges. The document performs a SWOT analysis of whistleblowers and concludes that while whistleblowing can prevent wrongdoing, frivolous lawsuits may discourage valid claims. It asks questions about whether whistleblowers should report internally first and how such cases should be evaluated.
SmartPhones, and their impact on the workplace, education and social engagmentAmy Herbert
Smartphones have significant impacts on productivity, communication, social engagement, and education according to recent research. While smartphones allow constant access to information and communication tools, increasing productivity, they can also be a distraction if used for personal reasons during work or school. Regulations limiting personal use during work hours may help maximize smartphones' benefits. Overall, the advantages of smartphones for productivity, communication and learning appear to outweigh the disadvantages.
The document analyzes Google's business, including its strategy, strengths, weaknesses, opportunities, and threats. Google makes 99% of its revenue from web-based advertising on its search engine. It faces competition from other search engines and risks from regulations, technologies, and legal issues. The document recommends Google continue improving search accuracy, fight spam, resolve click fraud issues, and provide private search services to businesses.
Business Ethics and Social Responsibility Sanjay Mishra
This document discusses business ethics and social responsibility. It provides definitions of business ethics as examining ethical principles and problems that arise in business. It discusses major branches of ethics including meta-ethics, normative ethics, and applied ethics. It also lists some common ethical issues in business such as employee and customer relations. The document emphasizes the importance of business ethics and provides Gandhi's perspective of treating business as a form of service and running it honestly.
This document is a project report on mergers and acquisitions submitted by Mr. Sunil Shendage. It includes an acknowledgement, objective, table of contents, preface, and various sections analyzing mergers and acquisitions such as the acquisition process, forms of corporate downsizing, the legal procedure, mergers in the IT sector, risk in mergers and acquisitions, and a case study on TATA Tea and Tetley. The report discusses the meaning of mergers and acquisitions, types of mergers like vertical, horizontal, circular and conglomerate combinations, and common objectives for business combinations such as growth, synergy, managerial efficiency, market entry, and diversification.
A STUDY ON CORPORATE GOVERNANCE ISSUES AND DEVELOPMENTS.pdfRhonda Cetnar
This document discusses the history and development of corporate governance in India. It begins by discussing how corporate governance has become a prominent issue globally in recent decades due to several corporate scandals. It then provides historical context on the development of corporate governance practices and laws in India, noting that accountability has often been lacking. The document outlines several committees and reforms that have aimed to improve governance standards in India since the 1990s, including the addition of Clause 49 to listing agreements. It also discusses differences between governance in government corporations versus private companies in India.
Effect of mergers and acquisition on returns to shareholders of conglomerates...Alexander Decker
This document discusses mergers and acquisitions among conglomerate companies in Nigeria from 1990 to 2005. It finds that relationships between net total assets and measures like turnover, profit tax, and profit margin were positive, while relationships with profit after tax, earnings per share, and return on capital employed were negative. It recommends that companies translate improved performance into shareholder benefits. The document provides context on why mergers and acquisitions occur, including achieving economies of scale and market power. It also discusses the Nigerian economic environment in the study period.
This document provides an overview of international business and different business structures. It discusses sole proprietorships, partnerships, limited liability companies, and corporations. For each structure, it outlines key characteristics such as ownership, liability, taxation, and regulations. The document also covers the business environment, defining it as the internal and external factors that can impact a company's operations, including personnel, customers, suppliers, owners, government, technology, social trends, and the economy. These environmental factors present both opportunities and risks for businesses.
Merger and acquisition a strategic move towardsTapasya123
In a dynamic economy, business structures and company structures are in a state of
constant flux. This leads to several forms of re-organisation. Thus, in the wake of economic
reforms, enhanced competition and globalisation of businesses; industries have started
restructuring and growing their operations around their core business activities either
by internal expansion or by external expansion. In the case of internal expansion,
a firm grows gradually over time in the normal course of the business, through acquisition
of new assets, replacement of the technologically obsolete equipments and the
establishment of new lines of products. But in external expansion, a firm acquires
a running business and grows overnight through corporate combinations. These
combinations are in the form of mergers, acquisitions, amalgamations and takeovers;
which have now become important features of corporate restructuring because of the
increasing exposure to competition both domestically and internationally. Although
successful organisations are often marked by a modest, continuous level of change,
the past few years have been marked by significant business and talent survival tactics
in response to challenging economic conditions. Moreover, the effects of these multiple
and ongoing changes produce complex and often ambivalent results. Employees are
the hardest hit by M&As and may take a long time to recover. Employees want to
see and hear from their senior leaders to help understand where the new organisation
is going, and how this change influences their jobs and the organisation as a whole.
Merger and Acquistition: A Strategic move towards Change and HR Challengesprofessionalpanorama
In a dynamic economy, business structures and company structures are in a state of
constant flux. This leads to several forms of re-organisation. Thus, in the wake of economic
reforms, enhanced competition and globalisation of businesses; industries have started
restructuring and growing their operations around their core business activities either
by internal expansion or by external expansion. In the case of internal expansion,
a firm grows gradually over time in the normal course of the business, through acquisition
of new assets, replacement of the technologically obsolete equipments and the
establishment of new lines of products. But in external expansion, a firm acquires
a running business and grows overnight through corporate combinations. These
combinations are in the form of mergers, acquisitions, amalgamations and takeovers;
which have now become important features of corporate restructuring because of the
increasing exposure to competition both domestically and internationally. Although
successful organisations are often marked by a modest, continuous level of change,
the past few years have been marked by significant business and talent survival tactics
in response to challenging economic conditions. Moreover, the effects of these multiple
and ongoing changes produce complex and often ambivalent results. Employees are
the hardest hit by M&As and may take a long time to recover. Employees want to
see and hear from their senior leaders to help understand where the new organisation
is going, and how this change influences their jobs and the organisation as a whole.
This document summarizes a journal article about addressing human resource issues in mergers and acquisitions. It begins by noting that while M&As are increasingly used for growth, most fail to achieve their goals due to neglected HR issues. It then presents a three-stage model for systematically addressing HR throughout the M&A process. Key points include identifying HR issues in pre-acquisition, post-acquisition integration, and post-integration stages. Attention to cultural differences, talent retention, and clear communication are highlighted as especially important for M&A success. The role of HR professionals in guiding a people-focused approach is also discussed.
The document discusses some common reasons why mergers and acquisitions often fail. It provides examples of mergers that failed, including HLL-TOMCO due to differences in valuation techniques, Jet-Sahara due to overvaluation and lack of a robust business model, and Glaxo-Wellcome-Burroughs due to high pay differentials between workers causing integration issues. It then lists some common sins that can cause M&A to fail, such as lacking clear guiding principles, ground rules, stakeholder communication, aggressive synergy targets, and cultural integration plans.
The contemporary business environment has been highly complex and dynamic with organizations facing unprecedented amount of competition due to globalization and technological innovations. Merger and acquisition is one of the most popular organization strategy that organizations apply when faced with this kind of operating environment acquiring resources, skills, and competencies beyond their organization control. Many studies have been done to support implementation of M&As within organizations but they have indicated conflicting outcomes with some showing that it negatively affect organization performance and others indicating they positively affect performance. However, none of the studies done has concentrated on the effect within the privately traded organizations and very few but conflicting studies have been done on this relationship in Kenya. This study therefore sought to assess the effects of merger and acquisition on the performance of privately trading organizations in Kenya. The study was grounded upon the efficiency theory, the market power theory, and economic production theory. Reviewed literature revealed existing gaps related to the literature. The study adopted descriptive research design on short run data collected at UAP Insurance within the pre-merger (2012-2014) and post-merger (2015-2017) periods for various performance statistics, where descriptive analysis was applied to assess the differences and independent sample t-test. The study found that M&A affects the net profit margin, Return on Assets, Return on Equity, and earnings per share with all these performance indicators showing that the post-merger period had poorer performance than the pre-merger period. The study further observed that the M&A implementation caused serious disruptions in the operating environment and organization culture of the organization, which was bound to have negative implications on organization performance, employees and shareholders. The study recommends that organizations should avoid M&A strategy unless their current assets are able to fund their current liabilities beyond the short run period, as the declined performance was linked to the disruptions experienced from M&A implementations. The study also recommends that M&A intended changes should occur sequentially to cushion the organization internal operations from the disruptions due to the changes. Study suggests further studies assessing the long term impact of M&A on organization performance.
The document discusses mergers and acquisitions. It defines mergers as a transaction where two firms integrate operations to create a stronger competitive advantage. It describes different types of mergers such as horizontal, vertical, conglomerate, market extension, and product extension mergers. Acquisitions are defined as one company purchasing another. The key difference between mergers and acquisitions is that mergers form a new company while acquisitions do not. Synergy effects are cited as a driving force behind M&A deals. The regulatory framework around M&As in India is also summarized.
Firm Performance Based on Acquisition, Merger, and Debt Policy on SOE in Indo...AJHSSR Journal
ABSTRACT: This study aims to examine the effect of acquisitions, mergers, and debt policies on company
performance in BUMN companies listed on BPS for the 2016-2020 period. The data collection technique used
was purposive sampling, where the sample obtained was 317 that met the criteria. The data analysis techniques
used in this study are descriptive statistics, classical assumption tests, multiple regression analysis tests and
hypothesistesting. Based on the research conducted, the research results show that acquisitions and mergers havea
significant effect on company performance, as well as debt policy which has a significant effect on company
performance.
KEYWORDS: Acquisition, Merger, Debt, Firm Performance
The document discusses the effects of mergers on employees. It provides details from a case study of the merger between State Bank of India and State Bank of Indore. Management-level employees supported the merger due to proposed benefits, while clerical staff protested due to changes in union policies and transfers to distant areas. The objective of the research is to study the impact of mergers on employees, including effects on job security, compensation and working conditions.
Mergers and acquisitions (M&As) allow companies to gain competitive advantages such as economies of scale, increased market share, and access to new customers and technologies. The document discusses the objectives and strategies of M&As, including international trends in M&A activity over the last century. There have been five major waves of M&A activity driven by factors like industry consolidation, globalization, and economic conditions. Currently, healthy corporate balance sheets, low interest rates, and growing M&A activity in emerging markets are fueling a new wave of cross-border M&As.
An acquisition occurs when two companies combine to form a new company. Acquisitions can be financed through cash payments or by issuing stock in the acquiring company. Strategic planning is important for acquisitions and involves analyzing strengths, weaknesses, opportunities, and threats. Due diligence is the process of reviewing the target firm's financial, legal, and operational areas to evaluate risks before finalizing an acquisition.
Legal Factors affecting Business Law in KurdistanAI Publications
The main purpose of this study is to examine the relationship between legal factors and business law in Kurdistan. The Business's involvement in financing legitimate change, however still constrained, has just yielded some valuable exercises. The researcher employed quantitative technique to analyze the association between factors affecting business law in Kurdistan. For this reason, the researcher used four different legal factors such us (company law, contract law, employment law and competition law) as independent factors to measure the dependent factor which is business law. I distributed 115 questionnaires, but only 102 questionnaires. The results of multiple regression analysis, Company law, contract law, employment law, and competition law as a legal factors influence positively and significantly business law in Kurdistan.
Strategic management managing mergers and acquisitionsIJBBR
This document discusses mergers and acquisitions from a strategic management perspective. It defines mergers and acquisitions, explaining that mergers occur when two equal companies join together under a new name, while acquisitions refer to one company purchasing another. Companies undertake mergers and acquisitions for strategic reasons like entering new markets, increasing revenues and market share, and achieving synergies. Proper screening of potential targets through due diligence is important to ensure mergers and acquisitions are successful and achieve their strategic objectives.
Strategic management managing mergers and acquisitionsIJBBR
In this paper we have discussed what mergers and acquisitions are and how they are a part of any
organizations strategic planning policy. Organizations ‘merge’ generally with similar organizations or
‘acquire’ weaker organizations, and the essence as to why they do so is that the value of two is greater than
one. They basically merge with or acquire each other’s strengths and try to overcome one another’s
weaknesses thus leading to increased market shares and profitability. We have discussed the various
rationales for mergers and acquisitions like the strategic rationale, speculative rationale, management
failure rationale etc, along with their types that include vertical integration, horizontal integration and
conglomeration. We have also put light on how companies go strategically about mergers and acquisitions.
The merger and acquisition life cycle aided by real examples (case studies) will offer a vivid understanding
of these concepts to the reader.
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Legal issues and challenges of Mergers & Acquisitions in Business world
1. 1 | P A G E
Research report on:
Legal issues and challenges of Mergers
& Acquisitions in Business world
*********** | Business law | Fall 2016
2. 2 | P A G E
Table of Contents:
Introduction
3
Material and Methods
4
legal issues in Mergers and acquisitions
5
Challenges in Mergers and acquisitions
7
Major technical issues in Mergers and acquisitions
12
Conclusion & Recommendations
15
Bibliography / References
16
3. 3 | P A G E
Introduction
Mergers and acquisitions (M&A) is a general term that alludes to the union of
organizations or resources. While there are a few sorts of exchanges characterized under
the idea of M&A, a merger means a mix of two organizations to shape another
organization, while procurement is the buy of one organization by another in which no
new organization is framed. The term M&A likewise alludes to the division at money
related organizations that arrangements with mergers and acquisitions.
On 2006 march, Emirates Bank Worldwide (EBI) and National Bank of Dubai
(NBD) have declared to blend and to make one of the Center East's biggest manages an
account with resources of Dh 165 billion ($45.2 billion). The merger was affirmed by the
UAE government and made an anonymous element with Dh 65 billion ($18 billion)
higher resources than the nation's greatest moneylender National Bank of Abu Dhabi.
The goal of this merger was to make a solid element that would assume an overwhelming
part in the managing an account industry (Inlet News, Walk seventh, 2007). In October
2007, Emirates Bank Universal has converged with National Bank. This occasion made
another organization with joined resources of $47.1 billion - the biggest bank in the area.
At the season of declaration of the Merger, the EBI and NBD had a market estimation of
$12.03 billion. The merger was focusing to empower the UAE to contend in worldwide
markets and be better arranged for difficulties out of the UAE's anticipated Unhindered
commerce Assention (FTA) with the US. EBI had a solid brand picture and a vast retail
nearness, while NBD had an edge in the corporate keeping money. Both banks brought
qualities, supplementing each other. The new foundation offered a total range of
budgetary administrations to both retail and institutional clients, locally and universally.
Organizations overall finished about $5 trillion worth of mergers and acquisitions
in 2015, as per a few distributed studies. It was the greatest year for M&A action since
2007, the budgetary information supplier Dealogic said.
Richmond-region experts who work in the M&A showcase say they expect an abnormal
state of movement to proceed in 2017, as organizations keep on looking for approaches to
4. 4 | P A G E
fabricate business in a moderate development economy by getting or converging with
different firms. For example, Richmond-based bundling producer MeastWestvaco Corp.
finished a merger in 2015 with Georgia-based Shake Tenn Co., making a consolidated
bundling and paper items behemoth named WestRock Co. The organizations are as yet
dealing with their combination, which includes consolidating corporate staffs from the
workplaces in Richmond and Georgia.
Material and Methods
To write and conduct this report, I have been used different types of techniques
and research tools to gain information about the legal issues and challenges of Mergers &
Acquisitions in Business world by citing some practical examples to study it.
I used different history books which were available in the university library to know
about legal issues in Mergers and acquisitions.
To write about the Challenges in Mergers and acquisitions which the world businesses
are facing.
However, about Major technical issues in Mergers and acquisitions I have used different
types of materials as it was the most challenging part of this paper. Firstly I searched in
different countries news paper about the examples of M&A in the business world
For these sections I used the primary source the most, as I asked several business people
and some senior people about it. Also I’ve used some books and research report about
how the Merges and acquisitions is operated in the country.
5. 5 | P A G E
Legal issues in Mergers and acquisitions
Mergers and acquisitions occur for various reasons, from making an economy of
scale by consolidating operations, to item and administration expansion, to catching an
expanded piece of the overall industry, and numerous others.
From a legal point of view, there are a few things to consider that require an
accomplished mergers and acquisitions legal advisor. The most fundamental of these is
the means by which the arrangement will be organized. By and large, there are three
fundamental approaches to structure such an exchange.
Stock buy – the purchaser purchases partakes in the objective organization, in the
process gaining the advantages and commitments of that organization.
Resource buys – the purchaser gets a few or the majority of the benefits of the
organization.
Merger – the purchaser consents to urge the benefits of both organizations, making a
bigger, more gainful substance better situating it to do well in the commercial center.
Once a structure has been laid out, the gaining organization has a large group of other
lawful issues to be settled as a feature of the due ingenuity prepare. A few things to
consider will include:
Money related issues – Including an entire survey of the organization's past execution,
edges, projections, capital stores and the state of capital resources.
Client connections and deals – More than whatever else, this will decide the future
money related strength of an organization. Are there any continuous question with clients
or providers?
Protected innovation – What copyrights and trademarks does the organization have, and
to what extent will it be before they lapse? Does the organization have any innovation
licenses, basic programming required for operations or other exchange touchy properties
that are critical to pushing ahead?
6. 6 | P A G E
Case – What pending legitimate issues are confronting the organization? Are there any
against trust or administrative issues?
Charge issues – have government forms been petitioned for as far back as quite a while?
Are there any progressing reviews?
However, Articles 276 through 280 of the UAE Government Business
Organizations Law represent mergers and acquisitions. Application for merger and
procurement are loaded with the Government Service of Economy and Arranging. The
Government Service of Economy and Arranging and the powers that are worried with
authorizing in the individual Emirates are recognized as National Administrative
Agencies. The Elected Service of Economy and Arranging surveys the application to
continue with the merger or obtaining. There are a pre-merger and securing recording
prerequisites if there should arise an occurrence of a procurement as far as press-notice
that the "gained organization will stop to have a free corporate presence or distribution of
the merger in the business enlist is required three months ahead of time of the successful
date of the merger." (Lex Mundi Ltd, 2006). There is no size of move edge, no size or
turnover of the gatherings test, no issue of geographic degree or national market impact
of exchange with a specific end goal to make documenting or to get endorsement. The
documenting is required and exchanges can't be handled without the recording. The
documenting must be made no less than three months before the exchange to be
powerful. There is no programmed holding up period or time restricts inside which the
Administrative Office must act. In the event that the Service of Economy and Arranging
choose to challenge the exchange, it might withhold endorsement for the exchange,
ceasing the exchange totally. On the off chance that this happens, the cure of the
candidate can apply for optional help. There is no help as an issue of right, in light of the
fact that there is no hidden appropriate to have such exchange affirmed. Such alleviation
can be looked into by making a request of for reevaluation to the Service of Economy and
Arranging or by looking for legal audit. The Assembled Bedouin Emirates has no
antitrust law. Applications for mergers or acquisitions are not surveyed with antitrust
contemplations. Government endorsements are the matter o prudence, not a matter of
right. (Lex mundi Ltd, 2006).
7. 7 | P A G E
Challenges in Mergers and acquisitions
It’s a dependable fact that mergers have a tendency to fizzle. As per a KPMG
study eighty-three percent of mergers don't help shareholder return. Generally, around
66% lose esteem on the share trading system. The inspiration that drives mergers can be
defective and, by and large, the issues connected with attempting to make blended
organizations work are very concrete. Mergers are regularly determined for the wrong
reason: Dread. Globalization, the entry of new mechanical improvements or a quick
changing financial scene all affect the officials choices to consolidate or gain different
organizations. At the point when an organization is obtained or when organizations
combine, the choice is normally in view of an item or market fit, however worker
contrasts are regularly disregarded. It's a slip-up to accept that representative issues are
anything but difficult to overcome and Presidents that neglect to remember them, may
wind up thinking twice about it.
Correspondence challenges
In 2010, PWC directed a study on organizations that had finished mergers and
acquisitions. Correspondence challenges turned out as one of the top elements that
brought on organization cooperative energies to fizzle. Speaking with workers, enabling
them and making a culture for them to flourish are all central parts to joining. Whenever
mergers and acquisitions happen, representatives and administration are by and large left
oblivious. Dread and absence of answers discourage best administration from giving the
data that workers need to divert their activities in the blended organization. Gossipy
tidbits fill secret and vacuums, and representatives are left making inquiries like: "Why is
the association blending?"; "By what means will the merger influence my work?"; and
"What support will I get amid the combining procedure?" This absence of
correspondence makes doubt and vulnerability in the work environment, prompting to
lower worker engagement levels. Conveying is an expertise that ought to fall into place
easily, in any case it can be the hardest aptitude to learn. While dealing with any key
venture, for example, mergers and acquisitions, it's imperative to keep the workers from
both sides educated at all times. Educate the representatives of the advance of the
8. 8 | P A G E
coordination through various correspondence channels (messages, intranet, and so forth).
Monitoring the inquiries, concerns and fears that workers may have, and, proactively
imparting answers, will manufacture straightforwardness and trust, and prompt to an
effective merger.
BenQ reported a merger with Siemens without notice in 2005. The items the new
combined organization should deliver would be a flawless amalgamation of Asian
perceptual plan and German balanced specialty. Be that as it may, the obstructions of
interchanges and social contrasts amongst West and East, ended up being a
disappointment, as the organization wound up losing 800 million euros.
BenQ had no involvement in the field of portable business and basically not sufficiently
capable to handle business universally. Giving over Siemans to such an undertaking
made the workers of both organizations frustrated. The merger was considered a
monetary debacle (yearly shareholders' meeting of Siemens, 2007). Workers at the
recently combined organization had a sentiment disloyalty and they felt that they would
never teach confide in their psyches for each other.
Had representatives thought about such a choice well ahead of time, they would have
possessed the capacity to rationally get ready for such a circumstance. BenQ ought to
have built up a successful correspondence arrange before the arrangement had been
closed, remembering the contrasts between the two corporate societies.
From the earliest starting point, there were allegedly clashes between German
administration and the Taipei Base camp on the procedure of improvement of another
items. Amid the post obtaining stage, BenQ actualized a progression of key changes, and
anticipated that their German partners would consequently get it. They accepted that the
workers would collaborate with the new usage, however with huge interruptions going on
brought about perplexity and made misconstruing and mass doubt. When BenQ board felt
their German partners were not clinging to their requests, they would in this manner take
money related support from Siemens. This was viewed as cruel and coldhearted in
Germany, yet In Taiwan, in any case, this would have been viewed as a normal choice.
9. 9 | P A G E
This BenQ contemplate, demonstrates that if a viable correspondence arrange had been
executed well ahead of time, remembering the distinction in the corporate societies, the
obtaining would have most likely gone a ton smoother. Lacking such an arrangement
prompts to representatives feeling sold out, overlooked and unmotivated to work. In the
long run this brought about a high rate of representative turnover.
Representative maintenance challenges
Amid mergers and acquisitions, representative maintenance can be a test, the same
number of trust it can be a danger. Inalienably, numerous mergers and acquisitions
(M&As) bargains have maintenance issues, which result from negative dispositions felt
by workers. This can incorporate instability about the eventual fate of the association's
course, employer stability, view of absence of authority validity and sentiments of
perplexity because of absence of correspondence. Fundamentally, workers frequently
lose confide in their association and feel double-crossed by their authority. Amid this
sensitive procedure, it's basic to keep representative turnover low since business
congruity is vital to understanding the advantages of the merger. there can be likewise
huge monetary ramifications from the cost of contracting new workers. Besides, turnover
can bring about loss of information and client connections.
For the most part, workers can have a few responses with respect to the M&A. A merger
brings a few hierarchical changes, which can either prompt to stress, nervousness, part
strife or to the sentiment not being dealt with reasonably. These emotions frequently have
suggestions for the workers and their future at the association. Organizations must
proactively work to keep up or recapture worker trust to keep them and the scholarly
ability they speak to. Decrease and substitution systems assume a urgent part for the
incorporation of a M&A. Its up to administration to constantly speak with representatives
to make straightforwardness and address any worries they may have.
PepsiCo gained Kentucky Broiled Chicken in the late 1980s. The weight the procurement
put on KFC's administration, separated down the positions to whatever remains of
representatives. Administrators and workers alike were restless about the future and their
prospects for headway under the new possession. As per a Harvard Business Survey
10. 10 | P A G E
article, most KFC directors thought the new holding organization, PepsiCo viewed them
as unnecessary. A vast segment of KFC's top administration wound up leaving not long
after the procurement and the rest of a feeling of unease as the organization culture
moved.
The loss of workers amid the procurement procedure will unavoidably influences day by
day business exercises. This has a thump on impact down the progressive line and further
disheartens an as of now traded off workforce. Organizations thinking about an obtaining
ought to concentrate on holding key administrators for the whole deal. Neglecting to keep
a minimum amount of the old protect may set off a domino impact the association will
feel for a long time to come.
Social Difficulties
Mergers and acquisitions more often than not happen in light of the fact that money
related and business basis include, yet neglect to understand the social ramifications that
may happen. Different studies led on the result of M&A's demonstrate that 30% of them
flop inside three years, the greater part because of the abberations in authoritative culture.
Amid the procedure, it's anything but difficult to regard an imminent exchange as simply
mechanical and logical process. Be that as it may, the general population part of any
arrangement is constantly basic. Culture fits can give the affirmation that consolidating
two organizations bodes well.
Culture is the long standing certainly shared qualities, convictions and suspicions that
impact the conduct, demeanors and significance in an association. It's troublesome for a
combined organization to convey the way of life of the past associations, since workers
from time to time supplant their basic qualities and convictions over the long haul. By
and large, when mergers and acquisitions happen, they acquire shifts administration
practices and procedures, which can have pessimistic ramifications on the general
population at the association. A sudden move in these practices, conveys disturbance and
unease to an organization.
Pre merger due perseverance will remove all the quantifiable procedures inside an
association; however it's key to lead culture overviews to decide the standards inside both
11. 11 | P A G E
associations. Social impacts can possibly be expansive and broad. For instance basic
leadership at one organization can be total inverses to another, the administration style
could be tyrannical or consultative and the way individuals work could be formal or in
light of casual connections.
At the point when Daimler declared that it would converge with Chrysler it was known as
a merger of equivalents, as both worked in a similar industry and viably created a similar
item. Be that as it may, Daimler had a culture of conservatism, efficiencies and playing it
'safe'. Chrysler was brave, various and imaginative. Months taking after the merger, it
was considered a disaster. Diverse organization societies had both Daimler and Chrysler
at war. Both organizations were generally unique on each level, including convention,
theories and working styles. German culture assumed control over the once laid back
culture at Chrysler. Representative fulfillment dropped to record-breaking lows and by
2000 the organization was making real misfortunes.
12. 12 | P A G E
Major technical and legal issues in Mergers and acquisitions
Abating development and higher money holds for expansive innovation
organizations may drive higher arrangement volumes and valuations, and incite expanded
M&A movement in 2014.
Volume
Deal volume for the technology sub-sectors of software, IT services, Internet/e-commerce
and hardware increased 3.6 percent in 2013 versus 2012.1 From a multiples perspective,
technology enterprise value to LTM EBITDA varied across the four subsectors,
increasing or staying constant in IT
services and software, while
decreasing in Internet/e-commerce
services and hardware.
Additionally, average deal value
increased in 2013 versus 2012
across the four technology sub-
sectors.2 This trend is due primarily
to an increase in "mega deals" —
transactions with deal values in
excess of $1 billion. The technology
sub-sector with the greatest change was hardware, which more than doubled the number
of deals completed versus 2012.3 There were 1,080 software sub-sector M&A
transactions in 2013, representing a 5.6 percent decrease in the total number of deals
compared to 2012.4 The total disclosed deal value of approximately $54.8 billion was a
16.2 percent increase from the approximately $47.2 billion disclosed in 2012 (Figure 1).5
The software sub-sector transactions with the largest deal values in 2013 were:
1 Capital IQ
2 Ibid
3 Ibid
4 Capital IQ with information compiled by Deloitte Corporate Finance LLC
5 Ibid
13. 13 | P A G E
Hellman & Friedman, LLC’s November announcement of its acquisition of
Applied Systems, Inc. for $1.8 billion
Cisco Systems, Inc.’s July announcement of its acquisition of SourceFire Inc. for
$2.4 billion in cash
Nokia Corporation’s July agreement for a 50 percent stake in Nokia Siemens
Networks B.V. for $2.2 billion
Bain Capital Partners, LLC’s May announcement of its acquisition of BMC
Software, Inc. for $6.9 billion in cash6.
Monetizing tech trends
Expanding quantities of innovation M&A arrangements are centered around
catching and adapting industry development patterns. Since many obtained organizations
are not substantial, in any case, it turns into an income cooperative energy play: How
does an acquirer rapidly separate esteem from a procurement, particularly on the off
chance that they paid a great deal for it, to meet shareholder and Money Road return on
initial capital investment desires?
Three tech patterns are catching the consideration of vital purchasers who are looking to
rapidly adapt their acquisitions: the mainstreaming of distributed computing; the quickly
rising idea of portability; and the developing utilization of enormous
information/business examination to enhance undertaking execution.
Cloud computing
The global cloud computing market is expected to grow at 30 percent CAGR, reaching
$270 billion in 2020.7 North America is the largest region in the cloud services market,
accounting for 63 percent of new spending on cloud services from 2013 through 2016.8
Gartner predicts continued strong growth in public cloud services, with a CAGR of 17
percent from 2011 through 2017. End-user spending on public cloud services is expected
to grow 18 percent in 2013 to $131 billion. By 2017, the public cloud services market is
6 $
Capital IQ
7 Forrester
8 Gartner; Forecast Overview: Public Cloud Services, Worldwide, 1Q13 Update
14. 14 | P A G E
predicted to exceed $244 billion.9 In addition, the emergence of cloud computing for
enterprises is increasing the popularity of SaaS as a distribution method. SaaS revenue is
forecast to grow at 16 percent annually through 2014 for the aggregate enterprise
application market.10
9 Gartner; Forecast Overview: Public Cloud Services, Worldwide, 1Q13 Update
10 IBISWorld; Visiongain; Ponemon Institute
15. 15 | P A G E
Conclusion & Recommendations
In conclusion, Mergers and acquisitions (M&A) is a general term that alludes to
the union of organizations or resources. While there are a few sorts of exchanges
characterized under the thought of M&A, a merger means a blend of two organizations to
shape another organization, while a securing is the buy of one organization by another in
which no new organization is framed. As it’s common in every business process there is
some complications. As M & A is a very big and complex business transaction process it
goes through many legal issues as discussed before also same technical issues as well.
I recommend that the business before merge or acquisition they must make a full
planning which involve all the aspects for all the departments of the organization and
make all the legal requirements met on the right way.
In arrange for M&A to be effective the smooth running of standard business must be
guaranteed. The nature of relations with clients of both the acquired and in addition the
obtaining organization ought not experience the ill effects of the M&A. This reality will
be specifically pertinent, if staffs are stressed over their own future. It is the errand of the
work force office to keep these disturbances to a base by taking plan of action to a staff
controlling acclimated to this specific circumstance or by adjusting a fitting
correspondence procedure.
16. 16 | P A G E
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