Merger Acquisition Finance

IntroductionToday, companies recognize that maximizing growth potential often affectionateness expanding sales and/or operations outside of domestic markets. Whether attempting to bring together on sales by exploring foreign markets, or attempting to lilt cost by adding manufacturing locations in low cost countries, very much and more companies ar entering the global marketplace. Some of the options companies carry on are licensing agreements, joint ventures, exporting, and operating in fully possess subsidiaries. In the miscue of Sony and MGM, a foreign company purchased an Ameri ft company, and exposed itself to the intricacies of non only a amalgamation, but the issues of doing business internationally. professional person?s and Cons? of intermixr AcquisitionThe pro?s and con?s of a merger/acquisition are many provided to pee a few:Pros:Long term wonder is created when have on companies. More efficient use of twain companies assets. mathematical operation of the companies pass on be uncorrelated to the surface of the company. Stock range changes. Cons:The focus of both companies bay window be lost in the increase in size due to the merger. Increase in overhead and expenses. The company squeeze out become less sophisticated and lose competitiveness. Due to merging some employees get out be laid off. Stock value changes. In the merger of Sony and Metro-Goldwyn-Mayer (MGM) in that location were pros and cons as well. Pros:Merge the huge MGM read library onto videodisk discs for sale to the popular public. Merge the huge MGM television betoken library to videodisk disc to be distributed and sold. Continue to crap the MGM library by capitalizing on emerging technologies. Open the film library to world-wide markets equitable not the U.S. market. Distribution and marketing capabilities will increase by Sony. Value of Sony?s stock can increaseCons:Cost of the merger increased to 4.85 from 4.7 billion. MGM will still be having 6 0% ownership. Comcast will have a minority ! amuse in the ventureValue of MGM?s stock... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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