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I will pay for the following article Value of Mergers for Offeror and Offeree. The work is to be 6 pages with three to five sources, with in-text citations and a reference page.
I will pay for the following article Value of Mergers for Offeror and Offeree. The work is to be 6 pages with three to five sources, with in-text citations and a reference page. For example, most of the big organizations are currently looking to expand their business to overseas countries in order to exploit the opportunities opened up by globalization. Merger & Acquisition is one way of business expansion adopted by big companies.
Gaughan (2007) defined a merger as the combination of two corporations in which only one corporation survives while the merged corporation goes out of existence after the merger process (Gaughan, 2007, p.12). Theoretically, mergers and acquisitions should be value-creating for the shareholders of both the offeror and offeree companies. But in practice, it is not 100% true. This paper critically evaluates the pros and cons of merger and acquisition to the shareholders of both the offeror and offeree companies
Increased market share, lower cost of production, higher competitiveness, acquired research and development know-how and patents, Financial leverage, Improved profitability, etc are some of the advantages or values for the offeror and the offeree through M & A (Helium, 2010). The offeror and the offeree can increase their customer base through mergers and acquisitions. For example, consider the recent merger deal between two telecommunication giants, India’s Bharti Airtel and South Africa’s MTN. As per this deal, MTN and its shareholders would acquire around 36 percent economic interest in Bharti Airtel, while Bharti Airtel would acquire a 49 percent stake in South African telecom giant MTN (Indias 11 largest M&A deals, 2009). The above deal helped both the companies to exploit the opportunities in India and South Africa more judiciously for the mutual benefits. Bharti Airtel will get assistance from MTN for their operations in South Africa whereas the MTN would get assistance from Bharti Airtel for their operations in India. The understanding of business climate and formalities in these countries can be exchanged for the .mutual benefits through this merger.