Question

• Using the Internet, research acquisitions that are currently underway and choose one of these acquisitions to discuss. Based on the firms' characteristics and experiences and the reasons cited to support the acquisition, do you feel it will result in increased strategic competitiveness for the acquiring firm? Why or why not?
• Of the problems that affect the success of an acquisition, which one do you believe is the most critical in the global economy? Why? What should firms do to make certain that they do not experience such a problem when they use an acquisition strategy?

Answer 1

ANSWER:

As prescribed to desribe about an acquisition that is undergoing, I take an example of JP Morgan Chase's marquee blockchain unit Quoram with a Brooklyn based start up company named Consensys. The acquisition is likely to be completed formally in next 6 months.

The acquisition will help JP Morgan Chase company an advanced step into blockchain technology. Though, the company owns a blockchain unit and as well uses it into daily banking operations, this acquisition will act as a robust support towards the same.

Moreover, the dream of launching of JP Morgan's cryptocurrency can come to real as the Consensys is the cofounder of ethereum cryptocurrency and has required experience to launch and manage a cryptocurrency.

As mentioned above that the acquisition with consensys will help JP Morgan Chase to fullfill it's robust banking requirements and as well as with this the company may come with a cryptocurrency in near future. I feel it is a win win situation for both the companies because the company acuired will have the enormous funds and resources to utilize and expand whereas, the acquirer will have a better than ever banking system and many more technological advantages like cryptocurrencies.

There are many problems that can get encounetered while merger and acquisitions. Few of them are like "Head offices of both the companies are in different countries" or "Language barrier should be readily countered" and many more related to the new expectation with the team in line with the business leaders.

Though, I belive that the planning for integration should be implemented at a very early stage, even before finalising the deal as this helps every employee to understand and synchronise himself/herself with the new brand and also helps in seamless transition all across the business units.