Question

1. Please give and explain 5 suggestions for successful mergers. What will make mergres profitable? Why do you think so?

2. Please give and explain 5 suggestions for successful acquisitions. What will make acquisitions profitable? Why do you think so?

3. Give and explain sevearl disadvantages of the first mover. Think opposite ideas of the first mover advantages. Why do you think so?

Answer 1

ans 1=

• Before initiating a merger, ascertain that your firm has sufficient liquidity to undertake & to sustain this kind of an investment.
• It is sensible to bring together a pool of experts from marketing, finance and operations divisions in order to represent these fields of expertise. You may need to get in external aid in the form of investment bankers, legal counsel etc.

It is essential that the persons who make up this team function together. Everyone's focus must be on the identical goal , & these experts must reflect cohesively & interact constantly.

• Is your aim to augment your market share? Are you trying to bring in new services/products & IP under your corporate group? Are you wanting to eradicate a rival / to obtain vertical integration?

This clarity will aid you set aims for your firm, aid you make decisions in the apt direction, and prevent you from deviating from the track.

• Virtual data areas are neutral & safeguarded off-site places wherein members of the 2 teams feel free to share records & collaborate effectually.
• Transition team leads must be selected from both the parties in the merger. These persons will already know the functioning & the ethos of their respective firms