Merger and Acquisition

Merger and Acquisition

Merger and Acquisition

Introduction

In every field of life challenges and hazards always present, these challenges sometime bigger and some time biggest, business is another name of risk. In this century the risks also increasing for the companies and bring the conditions which is more complicated for their businesses, to meet the challenges and to face the issues to compete the market, companies have to adopt different strategies and maintain planning. Merger and Acquisition (M&A) is also helps the business organization in various manner. For this we need to know about their nature of work and why these two can be adopted by the organization. As market permits to control the corporate environment by adopting and implementation of plan for bringing up the changes which would be more efficient and help to work effectively. This change may found in the form of the merger, acquisition and most important board structure change. All these changes may be resulting in the form of success and failure for the business organization. Since, it has been discussed below in the mentioned discussion.

Discussion

Merger refers to the combination of two different companies for the accomplishment of their mutual goals and become successful in the competitive market. Merger is found very friendly; it involves the combination of the liabilities and assets of the new firm which is merging with another firm. The merger amid two company's consultation at the beginning phase among the management teams of the same. Afterward, the melt has consent by the shareholders. Hence it has to be noticed that the management team does not have enough authority to consummate the merger (requires ratification by shareholders), other than has an authority to make the ineffective merger.

Control market grants external controls the internal systems of corporate control, in services through the management team, shareholders board, and board of directors, needs to monitor because all the wealth which has to be generated which would be distributed in an appropriate manner among the supplier, employees, customer, shareholders and society in general. These groups sometime fulfil their responsibilities accordingly as per the requirement of its mission. The continuation of the market for corporate control is further source of management control (King et.al, 2008, pp. 327-340).

Merger term is very clearly defined as this is the process when two or more companies agree to share their assets and form a new company. The reason for merging the companies can be multiple as per the requirement of the companies as sometime companies wants to share the assets and liabilities just to sustain in the market by earning the profitable growth in short term, and sometime acquires the company for increasing its value and afterward can enjoy the higher price for selling its goods and services. Merger basically based upon the two main structures. Merger which can be able to form a new company, this can be possible by the combination of the two or more companies for the creation of modern society, in which both throw in its absolute heritage ...