Firms undertake mergers and acquisitions to create larger companies, maximize shareholder value and strengthen the financial position of the company, according to Investopedia. These deals also bolster the purchasing power of the acquiring company.Continue Reading
Firms engage in mergers and acquisitions to foster efficiency and gain greater market share, states Investopedia. Directors also can increase the size of their company, which gives them more leverage when negotiating with suppliers. Takeovers also allow companies to make staff reductions and save money.
Company leaders who wish to acquire other entities may seek new technologies, reports Investopedia. This allows larger companies to stay ahead and remain competitive. Mergers and acquisitions may expand distribution and marketing operations. Acquiring another company can place an organization in good standing, allowing that company to raise more capital.
There is a distinction between mergers and acquisitions, and the nature of the deal depends on whether it was a hostile or a mutual takeover, explains Investopedia. Mergers occur when two companies of the same stature agree to merge because it would be mutually beneficial to do so. This deal is otherwise known as "merger of equals," and a new entity forms in place of the two companies. However, many mergers are technically acquisitions, because the company being bought agrees to be purchased by the larger company.Learn more about Corporations
The Greatwide brand was launched in 2006 to encompass and streamline the multiple acquisitions of carriage and logistic service companies. It's predecessor, RTI, originated in 1967 as a logistics services provider. That company shifted focus in 1993 to dedicated carrier lines in partnership with Wal-Mart and Clarksville Refrigerated Lines.Full Answer >
Several Van Kampen Funds were established across the several decades of the company's existence and multiple mergers. Van Kampen's first mutual fund, the Van Kampen Merritt U.S. Government Fund, was introduced in 1984. Van Kampen Growth and Income Fund, an equity fund, was established in 1946.Full Answer >
External growth is when a business or a company increases its profits through mergers and acquisition rather than its operation. The main goal is to bring the external finance into the company and achieve greater market share. External growth allows the company to expand quickly, but it is also associated with a number of problems; for example, when companies are merged, creating a unifying culture is usually hard.Full Answer >
As of June 30, 2014, the Hershey Trust Company is the shareholder with the greatest number of shares, making it the owner of the company. The Hershey Company, formerly known as the Hershey Foods Corporation, Hershey Chocolate Corporation and Hershey Chocolate Company, is an investor-owned public corporation.Full Answer >