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Mergers and acquisitions (Reasons (Cut costs, Bust sales, Grow the market…
Mergers and acquisitions
Types
Hostile and friendly
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Friendly is a proposal in which a target company's management and board of directors agree to a merger or acquisition by another company
Vertical and horizontal
A horizontal merger is a merger or business consolidation that occurs between firms that operate in the same industry. Competition tends to be higher among companies operating in the same space, meaning synergies and potential gains in market share are much greater for merging firms.
A vertical merger is the merger of two or more companies involved at different stages in the supply chain process for a common good or service. Most often, the merger is purposed to increase synergies, gain more control of the supply chain process, and increase business.
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Why M&A can fail
Lack of planning of post merger integration period (after merger focus on management is dissapeared)
Inadequate planning (when strategic plan cannot fit future plans), no due dilligence analysis (or it was done too quickly)
If companies want to avoid failure they shouldn't do these points below + take into account cultural differences
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