Free Paper Example: Success Factors to Mergers and Acquisitions

Seventy-five percent of mergers have failed to achieve their financial objectives because of various human, cultural, and economic factors. For instance, most companies have failed to become competent in their operations. The companies should consider the cost and the strategies required while merging with other companies. Therefore, this paper seeks to discuss factors that lead to the success of mergers.

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Most failures that occur in mergers are due to poor financial strategies during mergers and acquisitions. Notably, shareholders of the acquired firms earn more than the ones acquiring companies (Hitt, 2017, pg. 223 par 1). A good acquisition strategy should enhance the integration of both acquired and acquiring companies. Consequently, this integrity can increase the likelihood of friendly transactions between businesses. Alongside this, acquisition and merger success results from strategic alliances to test the feasibility of future companies (Hitt, 2017, pg. 223 par 1). Therefore, a financial strategy is a core factor that results in success in businesses.

Consequently, competence is a significant factor leading to success in every business. Notably, successful companies have developed a broad knowledge and concern about their customers' interests (Hitt, 2017, pg. 184 par two &3). For instance, Disney Company which initially operated on entertainment, chose to diversify their business by creating five different but related businesses (Hitt, 2017 pg. 184 par 1). Alongside this, the company began to operate on photography at an affordable price to satisfy their customers' desires (Ramanuj, 2019 pg 132 par 5). Subsequently, Disney Company became successful through competence and offering services at lower prices to their customers.

Subsequently, successful mergers and acquisitions consider a combination of ideas from different people. For instance, a company should hire better planners to run the business or seek ideas on ways to be successful in business (Lee, 2011). The research shows a combination of different ideas in planning has given the best procedure in management in most companies.

Conclusion

In conclusion, the paper discussed various factors that mergers and acquisitions should consider to enhance success. For instance, mergers should have proper financial strategies, a combination of ideas from multiple planners, and competence with the customers. Therefore, the article recommends mergers and acquisitions to practice such methods in companies' merging and management processes.

References

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness and globalization: concepts and cases. Boston, MA Cengage Learning

Lee, M. (2011). Mitchell Lee Marks on Success Factors in M&A.mp4 https://www.youtube.com/watch?v=riYzM7IH8F8Ramanuj, J. (2019). Introduction of Merger, Acquisition, and Divestitures. Paripex - Indian Journal of Research, 3(6), 132. doi: 10.15373/22501991/june2014/42