Every big organization has a little beginning. Some of them started as a family business with 1 or 2 people driving the business, some started with staff strength of 8 and after 1 or 2 decades turned to market leader having over 8,000 staffs in their payroll. Most of the owners of these companies have a long term view (Corporate Strategy) or picture of what they want their business to attain in many years to come and at one point or the other over the years have taken informed decisions to attain the set objective.
Corporate strategy can be defined as identification of organization purpose and plans and action to reach these goals. Corporate strategy differs from organization to organizations . in this paper will consider two main elements …show more content…
Merger & Acquisition & Anticompetitive Effect
2. Antitrust Laws
3. Select Cases treated by US Anti-Trust on M& A Studies ( Microsoft vs United State )
4. Conclusion
Merger & Acquisition (M & A) is a term used to describe coming together of two or more separate business entities to form a new one. The primary motivation for M & A is to increase the value of the combined company. The increase in value of the combine firm is called synergy. Synergy may be realized from reduction in cost of production, increased economics of scale , increase productivity or increased market power (Sometimes fosters competition and sometimes reduce competition ). If M&A reduces competition in industry such M& A is socially undesirable and may be …show more content…
Horizontal merger relationship is the type of M&A of two or more firms in the same line of business. For example banks acquiring or merging with another bank .This may extend to monopoly or oligopoly market structure. Vertical form of M&A is a situation where a firm acquirer its major suppliers in the industry. A common example is for an Onshore Petroleum company acquiring off shore petroleum producing company. This may also lead to collusion in the industry and may further lead to fixing of prices. There is said to be a congeneric type of M&A when firms that offer similar services but not in same industry merge. Example is a bank and a leasing & Investment company. In conglomerate M&A, the parties involved are in different industry . Example is an oil producing firm and television station
Corporate strategy can be defined as identification of organization purpose and plans and action to reach these goals. Corporate strategy differs from organization to organizations . in this paper will consider two main elements …show more content…
Merger & Acquisition & Anticompetitive Effect
2. Antitrust Laws
3. Select Cases treated by US Anti-Trust on M& A Studies ( Microsoft vs United State )
4. Conclusion
Merger & Acquisition (M & A) is a term used to describe coming together of two or more separate business entities to form a new one. The primary motivation for M & A is to increase the value of the combined company. The increase in value of the combine firm is called synergy. Synergy may be realized from reduction in cost of production, increased economics of scale , increase productivity or increased market power (Sometimes fosters competition and sometimes reduce competition ). If M&A reduces competition in industry such M& A is socially undesirable and may be …show more content…
Horizontal merger relationship is the type of M&A of two or more firms in the same line of business. For example banks acquiring or merging with another bank .This may extend to monopoly or oligopoly market structure. Vertical form of M&A is a situation where a firm acquirer its major suppliers in the industry. A common example is for an Onshore Petroleum company acquiring off shore petroleum producing company. This may also lead to collusion in the industry and may further lead to fixing of prices. There is said to be a congeneric type of M&A when firms that offer similar services but not in same industry merge. Example is a bank and a leasing & Investment company. In conglomerate M&A, the parties involved are in different industry . Example is an oil producing firm and television station