Essay on Mergers & Acquisitions
Case study below.
The sections should be:
Introduction â€“ talk about the case study
Comparison of pre-deal strategy
Comparison of financial performance
Compare actual post deal integration against planned process
Analysis â€“ (Traditional/Classical Approach)
- Corporate strategic plan â€“ motivation to merge
- Strategic objectives
- Acquisition footing
- Financial and strategic evaluation
- Search for target
- Friendly or Hostile
Analysis â€“ (Multi-disciplinary approach)
- M&A as Illusion â€“ Achieving a deal
- M&A as Stereotypes â€“ Process and national structure
- M&A as imperialism â€“ Firm structure
- M&A as linkages â€“ a holistic approach
Role of advisors
Recommendation and Conclusion
Examine different points in time in the same process (or the unfolding of a process) or the same point across different deals?
Level of analysis:
â€¢ Begin by stating the issue/aspect/perspective being investigated, why it is important and how it will be investigated.
A brief overview of the case study (Microsoft and Nokia merger in 2014) to be analysed and evaluated should be provided noting purpose, context and basic data.
â€¢ consider how different aspects of a deal unfold over time
â€¢ consider the role of specific advisors/functions during an M&A process.
You should next consider the basis on which to evaluate the case study , i.e. which perspective or perspectives are to be used to critically inform your analysis? For instance you could:
ï‚· _Compare pre-deal strategy with post deal strategy outcome
ï‚· _Compare pre-deal financial performance against post-deal financial performance (relative to sector/industry)
ï‚· _Compare actual post-deal integration process against planned process
ï‚· _Compare the role of advisors in the process across different deals
ï‚· _Compare prescriptions in the literature with what has actually happened in practice, that is, the literature suggests communications are vital and yet post deal communications might have been poor or misleading
ï‚· _Use a theoretical lens to explain what occurred, e.g. agency theory predicts that where there is an agency problem, there is a likelihood of a hostile takeover.
Case Study: Microsoft and Nokia merger in 2014
Microsoft acquired Nokiaâ€™s devices & services business, licensed Nokiaâ€™s patents and mapping services.
You must provide evidence:
- to demonstrate an ability to analyse M&As using appropriate concepts, theories, frameworks and models introduced in the module
- You have read additional literature around the concepts, theories, frameworks and models theories you have used
- You are able to make robust evaluations and draw valid conclusions from analyses drawing on appropriate concepts, theories, frameworks and models