Cross-border merger

Mer som dette

Mergers and acquisitions

Ved Davydov Alexey

CM - Chapter 3 - Why organizations change

Ved Sander van der Kolk

Tim Hortons

Ved Gabriel Ho-Garcia

O&SCM

Ved Giancarlo Rapisardi

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