Mergers & Acquisitions

Mergers and acquisitions fever gripped the 1980s, a fever that continued to engulf the 1990s. In contrast to the mergers and acquisitions fever that consumed the 1980s, the 1990s mergers and acquisitions fever was of a different strain. 1980s mergers and acquisitions consisted primarily of large, publicly held corporations. The mergers and acquisitions trend continued in the 1990s, but this wave of business marriages wedded more small and midsize businesses. Global competition, government deregulation, technological innovation, delayering, shifting economic conditions, the total quality and reengineering movements, and corporate rationalization are all factors which facilitate the willingness of corporate entities to effect mergers with former competitors or with organizations (Fairburn and Kay 23).

Mergers and acquisitions often increase the value of the companies who are buyers. Mergers and acquisitions play a major role in the growth of leading firms and in the development and maintenance of concentrated market structures. Mergers and acquisitions activity is also instrumental in fostering corporate diversification and the extension of a corporation’s primary focus or expertise into related production or marketing areas. Mergers and acquisitions are regarded as a particular vehicle for diversifying and for concentrating. Similarly, mergers and acquisitions tend – when they are succe

. . .
change of components and technologies, combined purchasing power and shared distribution logistics. The management expects that these synergies will not involve plant closures or layoffs and will not include ongoing cost reduction programs. Further synergies are expected to be realized in the medium term by sharing know-how in engineering and manufacturing. The management anticipates benefits of $3 billion (more than DM 5 billion) within three to five years. The merger was accomplished through exchange offer and merger transactions in which stockholders of both companies became stockholders of the new company. Daimler-Benz stockholders now own one share of DaimlerChrysler for each Daimler-Benz share they now own. Chrysler stockholders received 0.547 of a DaimlerChrysler share for each Chrysler share owned. The final ratio was adjusted to reflect the special payout and capital increase transaction of Daimler-Benz which occurred in June 1998. The transaction was tax-free for both companies and their shareholders, and is accounted for as a pooling-of-interests. Chrysler shareholders now hold approximately 43 percent of the new company while Daimler-Benz shareholders hold approximately 57 percent. Daimler-Chrysler shares and
. . .

Some common words found in the essay are:
Fairburn Kay, Commission FTC, Justice Department, Cargill Holland, Brown Shoe, Daimler Benz, Merrell Dow, Robert Eaton, Wall Street, Massachusetts Fickes, mergers acquisitions, merger acquisition, add value, health care, economies scale, combined entity, weston brigham, proposed merger, value mergers acquisitions, justice department, wave mergers, mergers acquisitions wave, mergers acquisitions fever, wave mergers acquisitions, mergers acquisitions mania,
Approximate Word count = 6522
Approximate Pages = 26 (250 words per page)