Meger and Takeover

Reasons for Merger and Take-over: An investigation into the takeover of Tommy Hilfiger by Phillips-Van Heusen (PVH) and the takeover of Cadbury by Kraft Foods Internal and External growth transpire when wiz firm decides to expand by joining together with other. This gouge happen by a takeover or a merger. Business may decide to undergo growth in install to retain profits, issue new shares or to adjoin competition within its industry and overseas. A merger occurs when devil or more firms join together to create wizard new combined organisation. There must be a mutual agreement of both sets of managers in order for a merge to take place. Firms may decide to merge to ascent growth, increase economies of scale, increase market valuation and to create an luck where both sets of parties would benefit from the transaction. Growth of firm is an important experience to managers to attain a higher salary more mogul and status. A takeover occurs when a firm gains control of another stemma by obtaining a controlling interest in its shares. The company makes a direct offer to shareholders of another in order to gain control. This is a form of integration. In order for the takeover to take a place it must come upon its target of purchasing up to 51% of the other firms shares so that it has a majority vote.

If the shareholders reject the offer, the takeover becomes a remote bid. Takeover/acquisition is a form of naiant integration, this takes place when one firm joins with another at the uniform stage of the same production process, which basically means standardised with like and the takeover occurs between two similar business from a similar field. Advantages of takeovers/acquisitions are that a firm rotter build its reputation if they take over another estimable company. There may also be recognized customers, a reliable income, a reputation to capitalise and network of contacts. However, takeovers bottomland also be unsuccessful at times. One of the main problems is that... If you want to get a full essay, order it on our website: Ordercustompaper.com

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