- 19 pages
- English
- PDF
- Available on iOS & Android
About this book
Seminar paper from the year 2015 in the subject Business economics - Investment and Finance, grade: 1, 0, Edinburgh Napier University, language: English, abstract: The purpose of a company's growth by merger and acquisition (M&A), rather than organic growth, is manifold. Common theories suggest the main reasons to be for instance greater market share or managers' interest for status and power. However, empirical studies show that most business combinations fail to create shareholder value. What encourages companies, like Pfizer or Google, to invest billions of Dollars in M&A, when empirical results are so discouraging? This essay gives a brief introduction on the terminology of M&A, followed by seven core objectives (market power, economies of scale, synergy effects, diversification, the incorporation of transaction costs, value discrepancy and managerial utility), and finally examines the extent to which these objectives are achieved in practice.
Frequently asked questions
- Essential is ideal for learners and professionals who enjoy exploring a wide range of subjects. Access the Essential Library with 800,000+ trusted titles and best-sellers across business, personal growth, and the humanities. Includes unlimited reading time and Standard Read Aloud voice.
- Complete: Perfect for advanced learners and researchers needing full, unrestricted access. Unlock 1.4M+ books across hundreds of subjects, including academic and specialized titles. The Complete Plan also includes advanced features like Premium Read Aloud and Research Assistant.
Please note we cannot support devices running on iOS 13 and Android 7 or earlier. Learn more about using the app.