Do Mergers Add Value to Business

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Academic Practice for Business

CONTENTS

Introduction
Definition of Mergers
Merging Intelligently
Steps for Merger Success
Reasons for Failure in Mergers
Analysis
TATA group the market Pioneers
Tata Steel
Tata Teleservices

Do Mergers add value to business?
Introduction
In a times where there is cut throat competition for even the biggies, organizations who have been playing since many decades and the rulers of economy it became a concern for them for how to survive? Here in cropped up the Idea of MERGERS. Well, whether a Merger adds value to business cannot be answered in a yes or a No. This depends on what kind of a Merger that is. The following essay will comprise of some successes as well as mergers which haven’t succeeded. Their reasons and analysis

The First ever merger possibly happened in USA . Here’s a List of the First few Mergers.

First Period 1893-1904-This was the Time of the first major Mergers in Sectors as Oil, Telecommunication, steel, mining happened. These were more of Horizontal Mergers.

Merger Waves in the 19th, 20th and 21st Centuries Martin Lipton he Davies Lecture Osgoode Hall Law School
York University
September 14, 2006

http://osgoode.yorku.ca/media2.nsf/58912001c091cdc8852569300055bbf9/1e37719232517fd0852571ef00701385/$file/merger%20waves_toronto_lipton.pdf

According to Gauhan (2005) Copyright 2005 by John Wiley and sons,Inc Hoboken,New Jersey) Published simultaneously in Canada.” mergers could well be joining in of two or more companies where in one company exists after the process. In some cases it could well be that the organizations up for a merger are equal in strength and where both the concerned organizations no more survives giving birth to a new name”. (Stephen.Davis) “Mergers can be defined a possibility of enhancing the outputs by combining two different bodies, where unsure market conditions prevail” (Stephen, 2008).

Merging Intelligently
Mergers can give you results on the basis on how serious and realistic your approach is. The Initial idea could well be for what reasons you want to do a merger? You have to vary the pros & cons before getting on it. Once done the first thing is, you either look for a Business broker(if you are a small sized) or a Mergers & Acquisition Expert(if you are medium or large scale) depending upon the size of your company. After this they will get you the portfolio tranfers, the company scale, legalities, due diligence, and then the negotiations . (www.smallbusinessnotes.com) SmallBusinessNotes.com is owned and operated by Internet Brands Inc http://www.smallbusinessnotes.com/managing-your-business/merging-wisely.html

Steps for Merger Success

* Ensuring Top Leadership drives the transformation
* Establish a coherent mission and integrated strategic goals to guide transformation * Focus on key set of principles and priorities at the outset of transformation * Set implementation goals and timeline and build momentum to show progress from day one * Use the performance management system to define responsibility and assure accountability for change * Establish a communication strategy to create shared expectations and reports related progress. (http://books.google.co.uk) GAO (United states General Accounting office) The book discusses above stated points as the key points to have success in any merger happening.

http://books.google.co.uk/books?id=k4A5Uii2JVsC&pg=PA24&dq=Success+steps+for+Mergers&hl=en&ei=t9bYTqTDAsT5sgaV6NT2Cw&sa=X&oi=book_result&ct=result&redir_esc=y#v=onepage&q=Success%20steps%20for%20Mergers&f=false

Reasons for Failures of Mergers
Well this is the negative impact of a merger happening when only the organizations involved suffer financial losses, loss of social status as well as losses for the shareholders. There could...
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