Showing posts with label Take Over. Show all posts
Showing posts with label Take Over. Show all posts

Friday, 15 June 2012

Business Notes: The factors influencing the success of takeovers and mergers

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  • Knowledge of the target and the industry
  • Good co-operation from employees
  • If the culture of both businesses fit well together/ have the same attitudes

Extensive analysis of the takeover and market target

  • Analyse and evaluate the company itself and the market
  • Scientific approach
  • Customer base/ target market – different to present
  • Financial situation/ performance
  • Workforce skills, experience, industry relations
  • Value of assets eg. property

Due diligence – the process of looking at a business in great detail

Employee involvement

  • Involve employees in negotiations
  • Keep them informed
  • Communication about job security

External Factors

  • Recession
  • Economic climate

Financial strength, position – burden of the cost of purchase

  • High gearing ratio
  • Can the loan repayments be made

Clearly defined motives

  • What are the objectives
  • Does it fit in with the strategy
  • Is it a strategic fit?

- Esjae x


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Friday, 23 March 2012

Business Notes: The problems of takeovers and mergers including difficulties integrating businesses successfully

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No previous experience
Target management attitude and cultural differences
No post-acquisition integration planning
Lack of knowledge of industry or target
Poor management of target


Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Creator of Esjae Official blog: http://esjaeofficial.blogspot.com/
Creator of Dear Scott Collins Blog: http://dearscottcollins.blogspot.com/
Creator of The Dangerously Dirty Truth Blog: http://thedangerouslydirtytruth.blogspot.com/
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Business Notes: The motives for takeovers and mergers and how these link with corporate strategy

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To gain market share (market penetration (ansoff matrix))
- This will raise brand awareness and reputation
- Attract/ gain customers (acquiring customers from the other business)
- Economies of scale (Purchasing, technical, financial, managerial)

Eg. Morrisons' takeover of Safeway (Morrisons gained a greater market share)

To protect themselves from external circumstances
- Competition
- Recession

Spread the risk (market development (ansoff matrix))

Eg. Walmart's takeover of Asda

To remove competition
- Higher prices
- Less alternatives for customers

Eg. IAG's takeover of BMI

Acquire their assets
- Customers
- Property/ Land (tangible assets such as buildings)
- Intangible assets (intellectual property such as patents, knowledge, expertise and skills)

Acquire supplies

Gain synergies
- The sum of the whole is greater than the individual parts

Eg. Kraft's takeover of Cadbury

In reality there are quite often a number of reasons as to why companies takeover and merge with another company.

The most common reason as to why businesses takeover and merge are:
-To access new markets
- To maximise shareholder vale



Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Creator of Esjae Official blog: http://esjaeofficial.blogspot.com/
Creator of Dear Scott Collins Blog: http://dearscottcollins.blogspot.com/
Creator of The Dangerously Dirty Truth Blog: http://thedangerouslydirtytruth.blogspot.com/
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Business Notes: Mergers & Takeovers

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Definitions:

What is a merger? It is where two or more firms agree to come together under one board of directors. This is mutually agreed/ voluntary - both companies identities remain.

What is a takeover (or acquisition)? This is where one firm buys a majority shareholding in another firm and therefore assumes full management control. - The majority shareholder "swallows up" the other company. These takeovers can either be friendly, usually through an agreement or hostile.


Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Creator of Esjae Official blog: http://esjaeofficial.blogspot.com/
Creator of Dear Scott Collins Blog: http://dearscottcollins.blogspot.com/
Creator of The Dangerously Dirty Truth Blog: http://thedangerouslydirtytruth.blogspot.com/
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Tuesday, 28 February 2012

Business Notes: Videos - Kraft/Cadbury: One Year On - Financial Times

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Kraft & Cadbury - One Year On


Jan 14th, 2011 - Louise Lucas travels to Bournville, the home of Cadbury, to see how the local community has been affected by Irene Rosenfeld and Kraft's takeover of the UK chocolate maker one year on.

For more on Kraft, Cadbury and their combined future visit the Financial Times at: http://www.ft.com/video

A great video if you're learning or researching about take overs and merges.

Source: http://www.youtube.com/watch?v=2suHFP20Pm4&feature=player_embedded
Source: http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips

- Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
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E-mail me: esjae-official@hotmail.co.uk

Business Notes: Videos - Cadbury takeover: Locals and workers react

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Negative local reaction to the takeover being completed


Cadbury workers and locals in Birmingham react after the chocolate maker finalises a deal with US firm Kraft.

A great video if you are studying take overs and merges.

Source: http://www.youtube.com/watch?v=EokUZc0kONM&feature=player_embedded
Source: http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips

- Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
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E-mail me: esjae-official@hotmail.co.uk

Business Notes: Video - Kraft Foods, Cadbury Agree $19.5 Bln Deal

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Kraft gets agreement from Cadbury:


 
British candy maker Cadbury agreed to a fattened $19.5 billion takeover offer from U.S. food group Kraft in a deal that would create the world's biggest chocolate maker. (Jan. 19)
 
A great video if you are studying take overs and merges.
 
 
- Esjae x
 
Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
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E-mail me: esjae-official@hotmail.co.uk

Business Notes: Video - Cadbury chocolate takeover deal

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Concerns from stakeholders, including Unions:



British chocolate-maker Cadbury has been swallowed up by the US food giant Kraft for just under $20 billion.

Kraft has been trying to take control of Cadbury for some time now, and this improved offer seems to have sealed the deal.

Al Jazeera's Jonah Hull reports from Cadbury HQ in Bourneville, in the UK's Midlands.

(18 January, 2010)

A great video if you are studying take overs and merges.

Source: http://www.youtube.com/watch?v=w9eP5-qkAVc&feature=player_embedded
Source: http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips

- Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
Add me as a friend on Facebook: https://www.facebook.com/esjaeofficial
E-mail me: esjae-official@hotmail.co.uk

Business Notes: Video - Unions voice fresh Cadbury jobs fears

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Unions voice fresh Cadbury jobs fears



Unions representing thousands of Cadbury workers have voiced fresh fears for jobs on the eve of the expected takeover.
A great video if you're studying take overs, merges or unions.

Source: http://www.youtube.com/watch?v=93ktVIEFq2Q&feature=player_embedded
Source: http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips

- Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
Add me as a friend on Facebook: https://www.facebook.com/esjaeofficial
E-mail me: esjae-official@hotmail.co.uk

Business Notes: Video - Cadbury Rejects Kraft Bid As Not So Sweet

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Cadbury rejects the initial bid:


 
 
Cadbury has rejected a renewed $16.4 billion hostile bid from Kraft Foods after the company refused to sweeten a previous offer. (Nov. 9)

A great video if you are studying take overs and merges.

Source: http://www.youtube.com/watch?v=GY7n0P6zrpk&feature=player_embedded
Source: http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips


- Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
Add me as a friend on Facebook: https://www.facebook.com/esjaeofficial
E-mail me: esjae-official@hotmail.co.uk

Business Notes: Video - In-Depth Look - No Kraft-Cadbury Combo...For Now - Bloomberg

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Analysing who might counter bid and how much Kraft should pay (from the perspective of Kraft shareholders)





Interview and discussion with David Leibovitz of the Horizon Asset Management. He talks about Kraft offers to buy Cadbury. (Bloomberg News)

A great video if you're studying take overs and merges.

Source: http://www.tutor2u.net/blog/index.php/business-studies/comments/takeover-insights-kraft-cadbury-the-story-in-video-clips
Source: http://www.youtube.com/watch?v=LrAzgmsHOKc&feature=player_embedded

- Esjae x

Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
Add me as a friend on Facebook: https://www.facebook.com/esjaeofficial
E-mail me: esjae-official@hotmail.co.uk
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