The study is based on the article “International Mergers and Acquisitions: Past, Present, and Future” by Ghauri and Buckley. The main purpose of this research study is to evaluate the change in merger and acquisitions in the international market for the past decade. The issues discussed in this article are the valuation and motives at the pre-merger stage and integrating and performance is evaluating at the post-merger stage. The main reasons for the motives of the international M&A are to achieve economies of the scale either by acquiring of one company by another or by merging two companies. The authors while writing this article used several relevant sources like books, journals, newspaper articles, etc (Karhen.home.xs4all.nl, 2015).
The main research questions discussed in this article are-
Why M&A activity experiences growth as well as downfall (merger waves)?
What are the motives of international M&A?
Is M&A a right choice for a company?
What are the tactics and evaluation of M&A?
What are the impact of M&A on the company’s strategies and the society? (Czinkota, Ronkainen & Moffett, 2011)
In the article, the authors firstly give a brief overview on M&A and the way it is used by different companies. Then the three types of M&A, horizontal, vertical and conglomerate M&A is defined. The authors further explain the growth as well as the downfall of the M&A activity from 1898 to 2000 in the US industry. Then the authors explain the different motives for the M&AQs. In this part, the authors elaborate the methods of takeovers using the simple formula to capitalize future income. The authors have determined why M&As are the right choice for a company considering a global expansion. Then the research study explains tactics and evaluation of the M&A strategies in a company. The impact of the M&A activities on the strategies of the company is then evaluated. Finally, the impact of the M&A activities on the society at large is elaborated. The authors were clear in their analysis and gave a straightforward idea about the M&A activities throughout a certain time frame ('Merger and acquisition roundup', 2011).
The theories evaluated in this article are related to the merger and acquisitions of companies in the international market. Mergers are defined as the takeover process where two companies merge into one single company. Acquisition one the other hand is the type of takeover process when one company acquires the ownership and all business activities of another company. M&As can be both friendly and hostile based on the market scenario. The fact that M&As are the right choice is evaluated by explaining the mechanisms of joint ventures as well as wholly owned subsidiary companies. The valuation of the M&As faces multiple problems that are disparities in profit maximization and loss of shareholder' interests (Dlabay & Scott, 2011).
Thus, the article focused on the effectiveness of M&As in companies and the way it influences the profitability and market value of the company. It also defines the way M&As, influences the company’s business activities, shareholders’ interest and the global market in general.
The study is based on the article “Factors Affecting International Mergers and Acquisitions” by Reed and Babool. The article focused on the factors that describe both inward and outward M&A activity for the US. The purpose of this research study was to focus on the concept of international merger and acquisitions in the food processing industry. The issues based on the research topic are the way foreign direct investment or FDI is made in the US food and agriculture industry in the form of M&A. The authors while preparing this article seek help from multiple journal articles, newspaper articles, and websites (Ifama.org/files/Reed.pdf, 2015).
The main research questions discussed in this article are-
What are purposes of inward and outward M&A for a country?
What are the variables used in M&A activity?
How are the variables used in the US's food and beverage industry?
What role do FDI plays in any international M&A? (Peng & Meyer, 2011)
The purposes of inward and outward M&A for a country are discussed by elaborating the investment strategy in M&A where one country is a recipient country, and another one is the sending country. The recipient country is the country from where the subsidiary company (inward part of investment activity) belongs. Sending country is the country where investing or holding firm (inward part of investment activity) belongs. Then the factors like interest rate and exchange rate that influences the M&A activity in US's food, tobacco, and beverage industry are discussed. The way inflow and outflow of FDI strengthen the national, as well as international economy, is finally explained in this article. The authors were clear in their analysis but over emphasized on the benefits of the M&A activities in the US food industry (Susnjara, 2011).
The theories evaluated in this article are related to the merger and acquisitions of firms mainly in the US market. The authors have used numerical data that showed the growth in M&A in various countries from 1990 to 1999 and the way each country gained from both inward and outward investment flow in the M&A activity. The further evaluated the work of other authors who have used financial management theories like capital budgeting model. They used regression to evaluate the effect of several international trade variables like stock market movements, interest rate and exchange rate on the M&A activities. Relevant data were collected for the regression methods like t-ratio method and OLS regression method and then the results were evaluated (S., 2011).
The article mainly focused on the inward and outward flow of foreign investment in a country. Then the three variables (stock market movements, interest rate, and exchange rate) are analyzed. The effect of the M&A activity on US's food industry was shown. The author believed that through their research work emphasis on the international M&A will be made and the way it will shape up the future position of the global market. International M&A activity indeed is a prime focus of the international business.
Czinkota, M., Ronkainen, I., & Moffett, M. (2011). International business. Hoboken, NJ: Wiley.
Dlabay, L., & Scott, J. (2011). International business. Mason, OH: South-Western Cengage Learning.
Ifama.org/files/Reed.pdf,. (2015). International Food and Agribusiness Management Association - International Food and Agribusiness Association. Retrieved 2 October 2015, from https://www.ifama.org/
Karhen.home.xs4all.nl,. (2015). Index of //Papers/2/International%20mergers%20and%20acquisitions%20-%20Past,%20present%20and%20future.pdf. Retrieved 2 October 2015, from https://karhen.home.xs4all.nl/
Merger and acquisition roundup. (2011). Metal Powder Report, 66(6), 6. https://dx.doi.org/10.1016/s0026-0657(12)70005-x
Peng, M., & Meyer, K. (2011). International business. London: Cengage Learning.
S., B. (2011). A Risk Management Model for Merger and Acquisition. Int. J. Eng. Bus. Manag., 1. https://dx.doi.org/10.5772/50935
Susnjara, J. (2011). Essays on international acquisitions.
At MyAssignmenthelp.com, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.
You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...Read More
Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...Read More
Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...Read More
Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...Read More
Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...Read More