Do Mergers Add Value to Business - 1527 Words

Academic Practice for Business CONTENTS Introduction Definition of Mergers Merging Intelligently Steps for Merger Success Reasons for Failure in Mergers Analysis TATA group the market Pioneers Tata Steel Tata Teleservices Do Mergers add value to business? Introduction In a times where there is cut throat competition for even the biggies, organizations who have been playing since many decades and the rulers of economy it became a concern for them for how to survive? Here in cropped up the Idea of MERGERS. Well, whether a Merger adds value to business cannot be answered in a yes or a No. This depends on what kind of a Merger that is. The following essay will comprise of some successes as well as mergers†¦show more content†¦It could be A) Unfocused approach or demotivated employees B) Not enough funds C) Cultural differences D) Disregard of the main business Point A implies that a lot times a Merger is happening for the sake of it as in just because it’s a trend and it would bring the organization in the news. It may happen not for a real Business cause but for having media attention. Here the Banking institution or the Lawyer normally tries to be diplomatic and never corrects or advice their possible clients in order for their own interests being served. Point B implies that a lot of time when the organizations keep their finances as secrets or they hold it onto the last minute to open up about their finances it is sometimes too late by then. Point C says clearly that two different geographical locations or different cultures could pose problems within the managements and operation style. Point D reflects that a lot of times when there are more than required post-merger meetings, concentrating on excessive cost cutting, or social gatherings more than what is required, it happens that the employee starts to loose onto interest. It could even be when the revenues are much less than what’s expected that the motivation of the employee sways away. (http://books.google.co.uk) (Senese,James A.) 2007 ( Managing Post-Merger Corporate cultue: A case study of two mergers in the†¦)Show MoreRelatedNet Present Value of T-Mobiles Discount Rate1421 Words   |  6 PagesPart I: The formula for net present value is as follows: INCLUDEPICTURE http://i.investopedia.com/inv/dictionary/terms/NPV.gif * MERGEFORMATINET   Source: Investopedia (2012) The net present value of this project if T-Mobiles discount rate is 4% is therefore as follows: Year 0 1 2 3 4 5 CF -3219000 350000 939000 1122000 500000 400000 PV -3219000 336538.5 868158.3 997453.9 427402.1 328770.8 NPV -260676 d 4% Based on thisRead More communication Essay1209 Words   |  5 Pages SITUATION nbsp;nbsp;nbsp;nbsp;nbsp;Four large US telephone providers merged to create a national wireless service. With a combined workforce of more than 30,000, the new company needed a communication platform to integrate its four business units. 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