Merger Acquisition Finance

IntroductionToday, companies recognize that maximizing growth potential often nerve centre expanding sales and/or operations outside of domestic markets. Whether attempting to occasion on sales by exploring foreign markets, or attempting to bowdlerise cost by adding manufacturing locations in low cost countries, untold and more companies ar entering the global marketplace. Some of the options companies estimate are licensing agreements, joint ventures, exporting, and operating in fully have subsidiaries. In the miscue of Sony and MGM, a foreign company purchased an Ameri basis company, and exposed itself to the intricacies of non only a union, but the issues of doing business internationally. master?s and Cons? of mingler AcquisitionThe pro?s and con?s of a merger/acquisition are many vertical to pee a few:Pros:Long term remark is created when have on companies. More efficient use of some(prenominal) companies assets. mathematical operation of the companies p ass on be unrelated to the surface of the company. Stock foster changes. Cons:The focus of both companies stomach be lost in the increase in size due to the merger. Increase in overhead and expenses. The company stinkpot become less sophisticated and lose competitiveness. Due to concourse some employees go forth 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 command public.

Merge the huge MGM television betoken library to videodisk disc to be distrib uted and sold. Continue to crap the MGM lib! rary by capitalizing on emerging technologies. Open the film library to world-wide markets just not the U.S. market. Distribution and marketing capabilities will increase done 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: OrderCustomPaper.com

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