Please enable JavaScript.
Coggle requires JavaScript to display documents.
Unit 2: Resons for Mergers & Acquisitions - Coggle Diagram
Unit 2: Resons for Mergers & Acquisitions
Sensible Motives
Economies of Scale
Market Power
Vertical Integration
Risk Reduction
Tax Shield
Surplus Fund
Complimentary Resources
New Business Opportunities
Eliminating Inefficiencies
Dubious Reasons
Diversification
Long-Term Financial Considerations
Lower Financing Costs
Management Preferences and Hubris
Reasons for Failure of Mergers & Acquisitions:
Unrealistic Price for Target
Cultural Integration Difficulties
Overstated Synergies
Integration Difficulties
Inconsistent Strategy
Poor Business Fit
Inadequate Due Diligence
High Leverage
Examples Given
eBay and Skype
Microsoft and Nokia
Daimler and Chrysler