Company Merger and Acquisitions Essay

1045 Words 5 Pages
Companies merge and acquire other companies for a lot of strategic reasons with different degree of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases. Mergers and acquisitions immediately impact organizations with changes of rights, and ideas and eventually, in practice. There are multiple reasons some are motives and financial forces just to name a few. There are financial risks of merging with or acquiring an organization this is why you must have a strategic plan in place in order to benefit. Companies merge with other companies for one main reason that is to make money. …show more content…
This merger is important for both companies in their own ways separately. There is a lot of negativity about the acquisition fear about Wal-Mart because they are the biggest competitors. Some are afraid that the merger between sears and Kmart still won’t be big enough. No matter what Kmart will still benefit from the planned cost sharing of several of Sears’s leading companies and the products as well as present opportunities to capture important revenue and cost including merchandise and non-merchandise purchasing. Both Kmart and Sears bring visible strengths to the table Kmart bring band names such as Jaclyn Smith, Joe Boxer, Martha Stewart Every day, Route 66. I just purchased a couple of summer dresses and I always shop at Macys so they are on their way. Sears is very well known for its brand name appliances being the largest appliance retailer in the U.S. it sale brand names like Kenmore, Craftsman and Die Hard. That last thing that I read is that the merger is expected to generate $500 million of annualized cost.Two big named companies, have decided to join forces on the mobile front in hopes of gaining a small piece of the mobile markets. Plenty of investor is hoping are hoping that this merger will give the big guy a little competition and their competition is Apple. Once considered power houses in other markets Fujitsu and Toshiba are getting ready to join forces.

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