In the merger case when the two in this case when one company at
Decide to move forward as a single new over another and established it’s self
Company instead of operating business the new owner of the business
The stock of both parties are surrendered the buyer company swallow the business
While new stock is issued afresh. Of the target company.
For example Galax welcome and smith Dr Reddy Labs acquire Batapahram
Are merge the new name of the company through an garment amounting 597
Galaxy smith Kline milling
TYPES OF MERGERS:
There are different types of mergers .Every type is different from the other type d different types of mergers show in this world some are following as:
In the vertical combinations company would like to take over the other company or seek its mergers with that company to expand espousing backward integration the resources of supply and forward integrations toward market outlets…
In the horizontal combination it is a merger of two competing firm which are the same stage of industrial firm the acquiring firm belong to the same industry as the target company the main purpose of such mergers are obtain the economics scale..
Company producing distinct products seeks amalgamation to share command distribution and research facilities to obtain economies by elimination of cost on duplication and promoting market enlargement…
IMPACTS OF MERGERS AND ACQUSITIONS:
There are different impacts on mergers and acqusitions some are following as
Impact on employees
Impact on management
Impacts on shareholders
Impact on competitions
IMPACT ON EMPLOYEES:
When two companies are merging these mergers may have greater impact on employees on both organizations this is difficult for both parties employs adjust in the new merge company
IMPACT ON MANAGEMENT:
When two companies are merging the owner o the both companies hire the qualified and trains staff when the hiring of new staff is complete the new hiring have great effect on the management department
IMPACT ON SHAREHOLDERS:
When the both companies are merge they have great effect on shareholder because shareholder is the part of the company shareholder invest their money in the company the merger have great impact on the shareholders
PROCEDURE FOR MERGERS:
Different stages are including in the procedure in mergers.
Application to the court
Direction by the court
Notice of compromise and arrangement
Approval of the seem by creditors member conditions
Court be satisfied the seem is beneficial
WHY MERGERS FAIL:
It is not secret that plenty of mergers do not work those who advocate mergers will argue that the merger will cut costs or boost revenue by more than enough to justified the price premium it can sound so simple just combine computer system merge a few department use sheer size to force down the price of supplies and the merger giant should be more profitable than its part in theory 1+1=3 sound great but in practice things can go away historically trend show that roughly two thirds of big merge disappointed on their own terms which means they will lose value on the stock market. The motivation that drive merger can be flawed and efficiency from economies of scale may prove elusive. In many cases the problem associated with trying to make merger companies work all too concrete.
COST OF MERGERS AND ACQUSITION:
Cost of merger and acqusitions are an important part in mergers acqusitions process before going of every merger and acqusitions both the company calculate the cost of merger and acqusitions to find out the volubility and profitability of the deal and project after the calculation both companies decide this deal is profitable or not.
ROLE OF MERGERS AND ACQUSITION IN TECHNOLOGY TRANSFER:
The mergers and acqusitions play an important role in the transfer of technology the both parties technology transfer from one unit to another unit the knowledge about new technology managers is increase the information’s about technology is enhance the new technology play an important role in the progress of the company there are many benefits of merger and acqusitions in the technology transfer some are following as.
The man agent is fast through new technology
Quickly delivery time
Better time do production
Increase per unit price
Capture the market quickly
Best competition with competitors
More production in little time
One of the common reason of the mergers and acqusitions is the believes that synergy exist allowing the two companies to work the efficiently to father than either would separately such synergies may result from the firm combined abilities to exploited economics of the scale eliminate duplicate functions share managerial experience and raise large amount of profit and capture the market power .the human factor is the major causes of difficulty in making the integration between two