An Examination of the Causes and Consequences of Mergers and Acquisitions in Market Economies: Lenovo´s Acquisition of IBM´s PC Division (e-book) (used book) | bookbook.eu

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Scientific Essay from the year 2011 in the subject Business economics - Operations Research, grade: A, Harvard University, course: Business Management/Mergers and Aquisitions, language: English, abstract: Mergers and acquisitions (M&A) are a form of contemporary corporate restructuring where separate companies come together to form a large entity. Mergers involve two separate companies who agree to drop their independence to form a new entity while acquisitions on the other hand, refer to a situation where a large company takes over a small one (Meyer, 2007). In acquisitions, it is only the acquired company that loses its existence while in mergers, the emerging companies looses their identity (Coleman & McLean, 2007). However, the distinction between what constitutes a merger and an acquisition is slowly getting blurred due to economic outcomes reasons. As a matter of fact, Coleman and Mclean (2007) argue that M&A is a general term that involves the process of buying, selling, dividing, and conjoining separate or similar entities to create corporate finance and to enhance faster growth in a given market without the need of creating a subsidiary