Merger, Acquisition, and International Strategies Essay - 8

Merger, Acquisition, and International Strategies - Essay Example Although Merger and Acquisitions have numerous advantages, the fact that they are faced with numerous challenges and risks is indisputable. This essay will compare a company that has no history of merger and another that has pursued international market after a merger relationship. Economists have delved into market research in order to explain the reason why some companies choose to enter into merges or opt to purchase other companies while others remain adamant to do so. According to Swam and Casy (2012), merger and acquisition involves the transfer of all assets and liabilities to the new company that is formed or to the purchasing company. From this statement, it is clear that the process involves the inheritance of all qualities of the companies so acquired, which points to the need for caution when considering the option. There has been a lot of emphasis on the many risks that a company must be prepared to encounter while considering either a merger or an acquisition. Therefore, the motives of acquiring, being acquired or even merging with another company must be clear and worth during the course of such a transition. In the US, the law provides regulations to govern mergers and acquisition in order to protect the welfare of the shareholders from the ris k of this process. Choose two (2) public corporations in an industry with which you are familiar – one (1) that has acquired another company and operates internationally and one (1) that does not have a history of mergers and acquisitions and operates solely within the U.S Although numerous companies in US have combined in a merger and acquisition process, there is evidence that some companies have remained reluctant to this kind of business strategy. For instance, Bright House Networks has exhibited no history of combining its assets with any other