Mergers & Acquisitions: A comparison of the perspectives for shareholders and management

Bachelor Thesis , 2005 , 67 Pages , Grade: 2,3

Business economics - Banking, Stock Exchanges, Insurance, Accounting

Mergers and Acquisitions (M&A) are some of the dominant topics of the economy today, because such a step has big influence on the companies’ development, the location, the employees and the other stakeholders.
Such activities are seen as an instrument of the development of a company since a long time. Companies act or respond with it on competitive situations.

The market for M&A expels in high volumes year by year therefore the interest of the public is accordingly big.
The shareholders and the management of the individual companies play a very big role on that occasion. They make the decision for or against a merger and they are also the ones who will earn profits from such a union, or suffer also damage in the case of doubt through it.
In order to find a solution of this problem, one needs a structured action and a lot of information.

This work deals intensively with the topic of Mergers & Acquisitions and explains on the basis of two examples the possible development. On this occasion, it was distinguished from takeovers also between two different forms; the friendly merger and the hostile takeover.
An especially big hurdle on the way to the new company represents the restructuring and integration of the acquired business into existing structures. Therefore one aim of this work is to show different possibilities of an after-merger-development; for example with Shareholder-Value-Strategies.
Since this is often interconnected with enormous expenditure and high costs, this study deals with the possible consequences for shareholders and management, not only positive but also negative ones.

Inhaltsverzeichnis (Table of Contents)

• Declaration and Word Count
• Abstract
• Acknowledgements
• Contents page
• List of Tables and Illustrations
• Chapter 1: Introduction
• Chapter 2: Literature review
  • 2.1 Basics for M&A
    • 2.1.1 Terminology
    • 2.1.2 Historical review
  • 2.2 Demarcation of internal and external growth
  • 2.3 Demarcation of company co-operations
  • 2.4 Different forms of consolidations
  • 2.5 Chances and risks
  • 2.6 Investor Relations Management as an instrument for a successful perspective for shareholders and management
  • 2.7 Motives for company mergers
    • 2.7.1 Strategic motives
    • 2.7.2 Synergism and efficiency
    • 2.7.3 Building up a strategic market position
    • 2.7.4 Market power
    • 2.7.5 Mergers for know-how
    • 2.7.6 Economic reasons
    • 2.7.7 Subjective reasons
    • 2.7.8 Management
    • 2.7.9 Shareholder
  • 2.8 Methodology

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation examines the topic of mergers and acquisitions (M&A) from the perspectives of both shareholders and management, aiming to understand the key factors influencing their decisions and the potential outcomes.

• The impact of mergers and acquisitions on company development, location, employees, and stakeholders.
• The various motives behind company mergers, including strategic objectives, synergistic benefits, market power, and the pursuit of knowledge.
• The challenges and opportunities associated with integrating acquired businesses into existing structures and developing successful post-merger strategies.
• The potential consequences of mergers for shareholders and management, including both positive and negative outcomes.
• The role of Investor Relations Management in fostering a successful perspective for shareholders and management.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 provides an introduction to the subject of mergers and acquisitions, outlining the significance of this topic within the contemporary economic landscape. It highlights the importance of understanding the perspectives of both shareholders and management in making informed decisions. Chapter 2 delves into a comprehensive literature review, exploring various aspects of M&A, including historical context, different forms of consolidations, and key motives behind mergers. This chapter also discusses the challenges and opportunities presented by mergers, emphasizing the need for successful integration strategies and effective investor relations management.

Schlüsselwörter (Keywords)

This dissertation focuses on the key concepts of mergers and acquisitions (M&A), examining the perspectives of shareholders and management within this context. Key themes include company development, strategic motives, integration challenges, post-merger strategies, and the impact of mergers on various stakeholders. The study also explores the role of Investor Relations Management in facilitating successful outcomes for both shareholders and management.

• College: Northumbria University (Newcastle Business School)
• Grade: 2,3
• Author: Alexander Wolters (Author)
• Publication Year: 2005
• Pages: 67
• Catalog Number: V43487
• ISBN (eBook): 9783638412636
• Language: English
• Tags: Mergers, Acquisitions