Cross Culture Management in Merger and Acquisition in Emerging Economies

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background1

Purpose of the Study1

Rationale of the Study2

Significance2

Rationale of the Study3

Aims and Objectives3

Theoretical Framework3

Research Questions4

CHAPTER 2: LITERATURE REVIEW5

Mergers5

Acquisition5

Overview of M & A6

Understanding the Concept6

Corporate Structure of Mergers7

Mergers by creating a new company8

Mergers by Absorption8

Horizontal Mergers8

Challenges in Mergers and Acquisitions in Emerging Economies8

Differences between Mergers and Acquisitions9

Cross Culture Management in Merger and Acquisition in Emerging Economies10

Corporate Cultures in Managing Merger and Acquisition13

CHAPTER 3: METHODOLOGY15

Research Method15

Literature Search16

Rationale for a Qualitative Study16

Research Approach17

Data Analysis17

Definition of Qualitative Research17

Secondary Data18

Ethical Concerns18

REFERENCES20

CHAPTER 1: INTRODUCTION

Background

Recently there has been a rapid increase in the number and volume of mergers and acquisitions in emerging economies. Integration processes of structural change involve an increasing number of regions and expand trans-national transactions considering the cultural aspects of the host countries. For the business community, these processes have a clear logic, because it implies a clear economic motivation. The expansion of markets, production synergies and financial benefits including the factors leading to an increase in the cost of equity are all considered as the economic motivational factors for merger and acquisition in emerging economies.

First, despite the large number of studies, there is an obvious gap in the qualitative findings, and the problems in the classical works in corporate finance refer to the unresolved problems of finance. Secondly, the scientific community stereotypes about the fact that integration of the transaction, in most cases lead to the destruction of share capital: stock quotes, company-buyer fall; financial results for the combined company deteriorate, which contradicts the observed integration activity (Collins, Daniel, Kothari, 1989, p. 81-101).

Purpose of the Study

The purpose of this thesis is to investigate the Cross Culture Management in Merger and Acquisition in Emerging Economies.

Rationale of the Study

Merger is a formal process of two or more firms getting into a union to form into a single entity for the assets and liabilities transferred by the selling firm and absorbed by the buying firm. The main benefit of mergers and acquisitions is that the acquiring firm considers the merger or takeover as a profitable investment. Secondly, there can be a reduction in the expenditure of the both merged companies.

Significance

This research would be very beneficial for future research as very little work has been done on the merger and acquisition. Moreover this research would open new doors for merger and acquisition future research

It is significant for the companies and organizations to concern all legal and law regulatory authorities before mergers and acquisitions. There are comprehensive requirement that authorizes the company to intervene in any action that could lead towards merger and acquisition. This is for the benefits for all the organization in case for instances in some mishaps the government could take some legal actions against the transaction. The other thing is that there are certain laws, in case of the international mergers, the tax policies and trading policies should be practiced in order to regulate and the actions can be practiced easily.

Rationale of the Study

The business life and literature ...