...Understanding mergers and acquisitions in the health care industry has evolved over the years. Health care has become increasingly complex and expensive. It is becoming a multi-trillion dollar industry worldwide. The topic of this research paper; the impact of mergers and acquisitions have in health care from a variety of viewpoints. The paper will discuss the multiple impacts in an effort to better understand mergers and acquisitions and what it means to the health care organizations culture, services, workers, and the patients they serve. What is Organization Culture? The organizational culture is not spoken of in an organization but felt on an everyday basis. The culture is defined by what is expected of people and what is valued. Culture defines the norms of behavior and how things are done in an organization. For an organization to be successful it must understand the culture which allows the organization to be productive. Culture defines the boundaries of behavior and performance which is the way of getting things done within the organization. Cultures are often developed early on in the organization and over time these experiences become the “rules and regulations” of the organization. Once a merger or acquisition is completed, the rules and regulations become something of the past (Eikenberry, 2006). The rules and regulations could have served one organization well; it will not work so well once a merger has been completed. When two organizations become one in a merger, the...
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...2007-2009, there has been increasing disillusionment with the free market system. Critically analyze the view that the free market system is the best and only realistic alternative for determining the allocation of resources in an economy. Solution 1: A general slowdown in economic activity, a downturn in the business cycle, a reduction in the amount of goods and services produced and sold—these are all characteristics of a recession. The recent Great Recession which officially lasted from December 2007 to June 2009 has many factors of which the main root problem is the bursting of a huge trillion dollars housing bubbles and loss of confidence by investors and the public in the strength of key financial institutions and markets. One example of this is the housing crisis morphed into a financial crisis since banks held mortgage backed securities and other assets. Irrespective of such seasonal situations, the market should be free for competition and regulate itself only based on the fair and free competition, which sets the best price for the goods and services a buyer pays for depending only on the market supply and demand. Free market system is the best and realistic, which can give the efficient and optimal resource allocation and utilization for both buyers and sellers. The main outcomes of such free market system are: 1. Allocate the supply of goods to the buyers who value them most highly, as measured by their willingness to pay; 2. Allocate the demand for goods and...
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...PREFACE …………………………………………………………………….…..…3 CHAPTER 1 Theoretical basics of mergers and acquisitions processes………..........5 1.1. The economic substance of M&A ………………………………………………5 1.2. Financing M&A…………………………………………………………………9 1.3. Valuation matters……………………………………………………………….11 1.4. M&A failure……………………………………………………………………13 CHAPTER 2 International M&A experience..............................................................16 2.2. The M&A practice in European countries…………………………………….16 2.3. The M&A experience in USA…………………………………………………22 CHAPTER 3 Mergers and acquisitions in Ukraine.....................................................32 3.2. Legislature of Ukraine in the sphere of M&A………………………………...32 3.3. M&A of Ukrainian corporations…………………………………………........33 3.4. M&A of Ukrainian banks……………………………………………………..40 CONCLUSION...........................................................................................................46 REFERENCES...........................….………………………………………………...48 PREFACE Strategic factor in the success of companies on global markets and increasing international competitiveness is the growth their market value. Current global trends show an increasing relevance of financial management, which deals with the dynamics of cost and capital structure of companies, institutions of financial flows. Achieve business objectives may be able through funding than their...
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...Thoughts on Economics Vol. 18, No. 01 Impact and Consequences of Globalization in Bangladesh Insurance Industry K.M. Mortuza Ali* Globalization means the breakdown of boundaries. Every country rich or poor would have access to the markets of other country. As a matter of right, the rich will have access to the markets of the poor and the poor countries would have access to the markets of the rich. This sounds quite fair as it will be a borderless world. Everyone will be equal citizens of the globe. But what is apprehended by many that this might lead to loss of the independence of the poor countries. This is simply because the poor may lose their economic independence under globalization. If there is only one global entity, there can not be nations and or can not be independence of nations. The entrepreneurs of developing countries can not compete successfully with the market giants of the west. The effect of economic globalization would be the demise of the small companies of the developing poor countries. Large multinational companies in the developed countries will take over everything. It is also apprehended that a globalized world is going to belong to the powerful dominant countries. They will impose their will on the rest, who will be no better off than when they were colonies of the rich. We are afraid, that in the name of globalization, the process of re-colonization has begun. Challenges and Opportunities ...
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...MERGERS AND ACQUISITIONS TABLE OF CONTENTS |TITLE |PAGE NUMBER | |ABSTRACT |3 | |INTRODUCTION |4 | |THE ACCOUNTING METHODS |7 | | VALUATION |8 | | TYPES OF MERGERS |9 | |WHY MERGERS |12 | |STATUTORY REGULATIONS |13 | |COMPARISON OF MERGERS IN INDIA AND CHINA |16 | |ARCELLOR MITTAL DEAL |17 | |DAIMLER CHRYSLER DEAL |19 ...
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...Thoughts on Economics Vol. 18, No. 01 Impact and Consequences of Globalization in Bangladesh Insurance Industry K.M. Mortuza Ali* Globalization means the breakdown of boundaries. Every country rich or poor would have access to the markets of other country. As a matter of right, the rich will have access to the markets of the poor and the poor countries would have access to the markets of the rich. This sounds quite fair as it will be a borderless world. Everyone will be equal citizens of the globe. But what is apprehended by many that this might lead to loss of the independence of the poor countries. This is simply because the poor may lose their economic independence under globalization. If there is only one global entity, there can not be nations and or can not be independence of nations. The entrepreneurs of developing countries can not compete successfully with the market giants of the west. The effect of economic globalization would be the demise of the small companies of the developing poor countries. Large multinational companies in the developed countries will take over everything. It is also apprehended that a globalized world is going to belong to the powerful dominant countries. They will impose their will on the rest, who will be no better off than when they were colonies of the rich. We are afraid, that in the name of globalization, the process of re-colonization has begun. Challenges and Opportunities ...
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...Name Tutor Course Date Merger and Acquisitions of Industry Sectors Merger and acquisitions of industry sectors relates to the businesses in the world today with the major companies involved in creation of an economy that also provide employment to citizens and individuals from any given part of the world. The planning and the strategies of the industries on the other hand develop a stable analysis that enhances the global ratio in order to compete with the other companies in the market. In addition, consolidation is an aspect that focuses on the market either locally or internationally. The key players such as Microsoft Company in the U.S dominate in the technology sector of the development of the computer systems. Consolidation leads to the sagging and the slow growth since major company competitors crowd the market. The major issues are inevitable because many of the companies include themselves in mega-corporation activities thus control the market in a monopoly state. Therefore, the impact on the market whereby business have a horizontal and vertical monopolistic nature exhibit concerns to the business partners and the government stakeholders (Chakravarty, p.45). In addition to the monopolistic nature, the government-linked companies seize the opportunity of the free market thus resisting the consolidation set of rules within the economy. In the U.S market share the financial stocks increase and decrease due to the prices of the trading stock. Therefore, the results rise...
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...Introduction Currently, Mergers and Acquisition strategy has been significant growth in term of amount and size of organization (Hitt, Harrison, and Ireland, 2001). Since 1980s, the total value of M&A is approximately 1.3 million million dollar and has a huge of increasing amount more than 11 million million dollar in 1990s. The important reason most of companies do merger and acquisition is to empower in market, more opportunities to access not enough/less own resource of company, more powerful in negotiate with supplier and customer, expand distribution channel, also reducing cost of production risk or new service that company has not enough capability to generate. Moreover, Mergers and Acquisition could limit ability of competitor and hurdle competitor to do business as well as reducing cost of operation because Mergers and acquisition make company expansion. As a result, it could possible to advantage in scale and scope (B.Elango 2006). For acquired companys, they would gain the advantage in term of financial condition because they usually gain capital meaning stronger in company financial. However, there are some considering factors about the problem of internal management after acquiring or merging such as organizational culture, the risk or failure with wrong set objective. These might be effected to operate business in the future. Mergers and Acquisition could be influenced in different groups both company and acquirer. Thus, it is necessary to consider...
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...Keith Seibert 6/3/2012 Prof. Neil Riley ACC 401 MULTINATIONAL ACQUISITION PEPSICO AND QUAKER OATS COMPANY By the end of 1999, following a multi-year restricting effort, PepsiCo had once again become one of the most successful consumer products companies in the world. In less than four years, it had achieved an 80% increase in net income, on 30% lower sales, and with 75% fewer employees! PepsiCo’s major subsidiaries were the Pepsi-Cola Company, which was the world’s largest manufacturer and distributor of snack chips, and Tropicana Products, the largest marketer of branded juices. Throughout 1999, PepsiCo was closely tracking several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived. At this time, PepsiCo management decided to initiate a confidential discussion with The Quaker Oats Company about a potential business combination. Quaker Foods North America manufactures, markets, and sells ready-to-eat cereals, hot cereals, flavored rice and pasta products, mixes and syrups, hominy grits and cornmeal in North America. Products manufactured and sold include Quaker oatmeal, Cap'n Crunch, and Life cereals, Rice-A-Roni products, Aunt Jemima mixes and syrups, and Quaker grits. Gatorade, a key brand in Quaker’s portfolio, had long been on PepsiCo’s wish list. On October 5, 2000, an investment-banking team from Merrill Lynch met with the top executives of PepsiCo to discuss a...
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...it can be hard to determine what they like and don’t like. Moreover, with the economy, which by the way affects all businesses, you just do not have an exact science on how things will turn out. Industry businessman, economist etc. can only make assumptions based on occurrences. So, if you are in a business to make a profit, and satisfy stakeholders you need to have a plan. Sometimes the plan calls for mergers and acquisitions. Mergers and acquisitions can have a positive and/or negative effect. “According to a KPMG study, 83% of all mergers and acquisitions failed to produce any benefit for the shareholders and over half actually destroyed value.”(http://www.itapintl.com/...the-impact-of), to be a good CFO you must do the research to determine if acquiring another company will be beneficial. This report will identify the risk factors of the target acquisition company Kmart and the risk factors present in the parent company Costco. Our team will then show how these risks can be mitigated. BECAUSE OF THE RISKS CAN COSTCO ACQUIRE THE #3 KMART? KMART RISKS/MITIAGATION Many investors such as Costco may be unaware of all the risks associated with investing in a specific company. Providing current and future investors with risk factors allows investors to evaluate a company and make an informed investment decision. Kmart’s operations and financial results are subject to various risks and uncertainties, including those described below, that could significantly affect...
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... SINGA P ORE MUMBA I BK C NE W DE L HI MUNICH Mergers & Acquisitions in India May 2015 © Copyright 2015 Nishith Desai Associates www.nishithdesai.com Mergers & Acquisitions in India About NDA Nishith Desai Associates (NDA) is a research based international law firm with offices in Mumbai, Bangalore, Silicon Valley, Singapore, New Delhi, Munich. We specialize in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner. We focus on niche areas in which we provide significant value and are invariably involved in select highly complex, innovative transactions. Our key clients include marquee repeat Fortune 500 clientele. Core practice areas include International Tax, International Tax Litigation, Litigation & Dispute Resolution, Fund Formation, Fund Investments, Capital Markets, Employment and HR, Intellectual Property, Corporate & Securities Law, Competition Law, Mergers & Acquisitions, JVs & Restructuring, General Commercial Law and Succession and Estate Planning. Our specialized industry niches include financial services, IT and telecom, education, pharma and life sciences, media and entertainment, real estate and infrastructure. Nishith Desai Associates has been ranked as the Most Innovative Indian Law Firm (2014) and the Second Most Innovative Asia - Pacific Law Firm (2014) at the Innovative Lawyers Asia-Pacific Awards by the Financial Times - RSG Consulting. IFLR1000 has ranked Nishith Desai...
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...Mergers & Acquisitions in India With specific reference to Competition Law This research paper is a copyright of Nishith Desai Associates. No reader should act on the basis of any statement contained herein without seeking professional advice. The authors and the firm expressly disclaim all and any liability to any person who has read this research paper, or otherwise, in respect of anything, consequences by any such and of of anything in February 1, 2010 done, or omitted to be done person reliance upon the contents of this research paper. Nishith Desai Associates www.nishithdesai.com TABLE OF CONTENTS I. II. Introduction .................................................................................................................................................... 3 Mergers and Amalgamations: Key Corporate and Securities Laws Considerations. ...................................... 7 III. Acquisitions: Key Corporate and Securities Laws Considerations................................................................. 10 IV. Competition Law ............................................................................................................................................ 21 V. Exchange Control............................................................................................................................................ 24 VI. Taxes and Duties ...................................................................................................
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...Chapter 2: Global Outlook Will the next wave of m&a create more value? After the M&A activity slowdown of the early 2000s, the market is experiencing a new surge of mergers and acquisitions. It is largely known that in the past, two-thirds of M&A transactions have destroyed value, often resulting in abject failure. In this context, the key question today is: Will the new wave of M&A create more value than the previous one? Lessons from the past, we have tried to identify the reasons driving value creation and value destruction in M&A deals by analysing 2500 M&A transactions that took place over the past 10 years in Europe. Four lessons jump out of this study and from our experience. First, there is no statistical correlation between the value creation and the size of the transaction. However, large scale transactions (more than $1bn) tend to destroy value whereas small scale transactions (less than $50m) tend to create value. During 2004-2005 periods, for instance, small scale transactions in our sample have an average positive return after one year of 6 percent, compared to -5 percent for the large scale transactions. Furthermore, the average return weighted by transaction amount is below the average non-weighted return, which means that large scale transactions are obviously tending to destroy more value than small scale ones. In this respect, it is interesting to mentionthe existence of some country specificities regarding the average transaction...
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...Accounting Standards for Business Combinations Heather Blanchette Ashford University ACC407: Advanced Accounting Rick Kwan October 27, 2014 Accounting Standards for Business Combinations In the competitive world that exists today, it is only natural for the market to be just as competitive. It is all too common for businesses to merge with other businesses in order to succeed and gain more control of their existing markets. Because of the distinctive rivalry between known companies within these competitive markets, such as Coca-Cola Company and Pepsi Co., these companies need to expand business to the most amount of profit possible. This method of thinking applies to all companies within any market. The largest reason to think about expansion to extension of ownership is to seek additional profit. The Financial Accounting Standards Board (FASB) is one of the leading officials that represent the accounting concepts and regulations related with business combinations in the United States. Business Combinations are an essential part of expansion. Businesses may find that entering into new product areas or branching out into new potential sales areas can be a bit daunting when these products and new areas are virtually inaccessible without the right tools or accessibility. However, by acquiring or combining with other companies, more opportunities may arise if these other companies have knowledge of these new product areas or sales areas. For example, telecommunications...
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...Executive Summary The reason behind mergers and acquisitions is to create more value as two organisations put together would be more valuable than two separate organisations whereas the basic theory behind buying an organisation is to build shareholder value over and above of the sum of the two organisations. Mergers and acquisitions have become a regular occurrence of growth for organisations in the recent years. Organisations are presented with likely wider market share as well as open to a more diversified market. Mergers has most times been seen to be profitable both competition and consumers by allowing companies to run more successfully. It may occasionally lead to decrease competition in some ways and highly complicated as can be seen in today's world. There are laws governing mergers and acquisitions in the UK which is covered in the city Code on Takeovers and Mergers which is created to ensure that shareholders are cared for and not denied the privilege to decide on the value of a takeover and that shareholders of the same standard are afforded equal rights by an offeror. CSR is the process of evaluating a company's impact on the society and assessing their responsibilities. It defines areas of concern and initiatives to better relations with the people as well as the environments affected by business functions. Shell Plc certainly needs to do more to improve the quality of life in the society in which they operate as well as the environment where they...
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