Mergers and Acquisitions Analysis

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FIN 444

M&A Analysis Paper
In order to have a successful M&A many different steps are involved. Each step in the process is just as important as the next and cannot be over looked. Some of the broader area’s that require focus are; accounting, taxes, and legal. Within each of these categories are several sub categories that are important to focus on when attempting to complete a successful merger or acquisition. While every organization may have a different process for doing so, and place more importance on one than another would, all of the aspects listed are important. However, it is up to each individual organization to designate how important each one is. When it comes to the accounting portion of a merger or acquisition it would seem that this would be one of the most important areas of all. Several of the subcategories in the accounting portion are; revenue enhancement, cost reduction, and risk management. With mergers and acquisitions revenue enhancement can often come in the form of synergy, and involves greater cost effectiveness of the new organization. Under revenue enhancement there are several areas that could be a priority such as; a reduction in staff, new technology and systems, increased negotiating power, and improved market reach and visibility. (www.investopedia.com) Accomplishing revenue enhancement is often much more difficult than it sounds. It is not something that is automatically realized, and often involve many tough, tough decisions. The next portion of the accounting side of M&A is cost reduction. Cost reduction is a process that organizations use in order to reduce their overall expenses which in turn will increase profits. There are many different strategies that organizations use in order to accomplish this, but there is not one blanket strategy that applies to all. If the organizations manufacture products then they will use strategies such as supplier and/or component consolidation, re-source out to a low cost...
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