Mergers and Acquisitions

Mergers and Acquisitions

Introduction

Recently business systems in both developed and developing countries have been involved in the process of restructuring and consolidation, which has greatly changed the nature of the business. Changes in regulation of the business and technology have dramatically increased competition, opening simultaneously for expansion up new markets. In many countries, business crises or bankruptcy of major systemic companies and banks gave impetus and restructuring process of local and international mergers and acquisitions of companies and banks. Advances in the development of information technologies, the continued globalization of capital markets and risk management have led to consolidation in the investment banking and insurance businesses.

Discussion

Background

The sharp increase in the volume and number of mergers and acquisitions of commercial and investment banks and insurance companies around the world, primarily in the U.S. & UK and a significant expansion of these processes in Europe and Asia. The share of cross-border mergers, on the process of consolidation of the financial sector, the influence of regulatory bodies seeking to develop various kinds of regulations to limit the negative impact of mergers in the banking industry, or, conversely, to develop measures to encourage mergers. Despite the economic downturn, mergers and acquisitions (M & A) are a powerful tool for the development of the banking business and changes in its structure. Conditions after the crisis are forcing banks to enlarge the capital for more effective use and further development. In UK, as in other countries, under the influence of globalization, the consolidation of the financial capital reduces the number of credit and financial institutions while expanding the geographical and functional expansion of banks. The restructuring of the banking sector is accompanied by the internationalization of business, diversification of banking products, the integration of banks with non-bank institutions. Theoretical and applied aspects of these new processes in the banking business sufficiently explored, which determines the relevance and timeliness of this study.

Note that the large number of scientific and practical research into the causes, effects and effectiveness of banks and companies mergers, using different methods and for different conclusions about the effects of banks and companies mergers on the economy as a whole. However sufficient studied conducted regarding the procedure of banks and companies mergers, the impact of this mergers. This needed further development and approaches to the regulation of mergers and acquisitions on the part of supervisors to assess the effectiveness and management of risks arising in connection with these transactions.

Mergers and Acquisitions

Mergers and acquisitions are the processes that accompany the development of the economy since the establishment of mass production and large companies since the mid-nineteenth century. They are among the beast ways for the development and growth of the company, an alternative to growth based on internal method implemented based on our own resources and skills traditionally understood or capital investment. These processes are taking place in public and private equity, including the privatization. Mergers and acquisitions are among the processes of highly successful and popular among ...