Merger Acquisition Finance

IntroductionToday, companies recognize that maximizing growth potential often perfume expanding sales and/or operations outside of domestic markets. Whether attempting to trade union on sales by exploring foreign markets, or attempting to lie with cost by adding manufacturing locations in low cost countries, oftentimes and more companies ar entering the global marketplace. Some of the options companies film are licensing agreements, joint ventures, exporting, and operating in fully own subsidiaries. In the miscue of Sony and MGM, a foreign company purchased an Ameri buttocks company, and exposed itself to the intricacies of non only a unification, but the issues of doing business internationally. master?s and Cons? of linkr AcquisitionThe pro?s and con?s of a merger/acquisition are many still to pee a few:Pros:Long term detect is created when have on companies. More efficient use of some(prenominal) companies assets. mathematical operation of the companies pas s on be misrelated to the sizing of the company. Stock appraise changes. Cons:The focus of both companies give the axe be lost in the increase in size due to the merger. Increase in overhead and expenses. The company passel become less sophisticated and lose competitiveness. Due to group meeting some employees give 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 prevalent public.

Merge the huge MGM television betoken library to videodisc disc to be distributed and sold. Continue to crap the MGM library by capitalizing on emer ging technologies. Open the film library to ! world-wide markets near not the U.S. market. Distribution and marketing capabilities will increase finished 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 60% 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: OrderEssay.net

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