によって Julia Ivanova 6年前.
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Cross-border merger
Cross-border merger
negative impacts of organizational change
change of employees' requirements for the level of remuneration
the increase in the number of conflict situations between workers and management, within the workforce;
reduction of innovation activity of employees, unwillingness to “take” even reasonable risks
reducing the loyalty of employees towards the organization
tense psychological atmosphere
Advantages and disadvantages of mergers
Disadvantages of mergers
After the end of the transaction there may be problems with the staff of the company that you bought
The integration process becomes complicated if companies operate in different areas
Big risk with an incorrect assessment of the company
advantages of merger
Instant purchase of market share
Such a strategy weakens competition
The ability to quickly achieve the best results
The main motives
The difference in the market price of the company and the cost of its replacement
Diversification of production.
Tax reasons.
Improved management quality.
Getting a synergistic effect.
increased market power due to reduced competition (motive of monopoly);
financial savings by reducing transaction costs;
combining complementary resources;
economies of scale
Depending on the attitude of the company's management personnel to a merger or acquisition transaction of a company
corporations
corporate alliances
hostile mergers
friendly mergers
problems in the process of conducting merger transactions
reduced manageability and transparency
loss of customers associated with the departure of employees
the massive dismissal of employees on their own
underestimation of the costs of the integration process
incorrect assessment of market potential for development; relationships with customers, competitors and suppliers
Problems of merger
refusal of employees to cooperate in an integrated company
lack of strategy
underestimation of costs
consciously biased assessment
lack of proper control
cultural barriers
inexperience of managers
Implications of mergers and acquisitions
mistakes made in the process of a merger transaction
underestimation of the size of the investment required to complete a merger or acquisition transaction
an incorrect assessment by a takeover company of the attractiveness of the market or the competitive position of the absorbed (target) company
Motives of transactions
the desire to build a monopoly
improving the quality of management
desire for growth
How does an Cross-Border Merger Work?
Registration and Strike-Off
Court Approval
Pre-Merger Acts
types of cross-border merger
Merger by Formation of a New Company
Merger by Absorption of a Wholly-Owned Subsidiary
Merger by absorption
