Tech Data Merger Analysis

Mergers and Acquisitions (M&A) typically refers to a corporate fiscal and strategic set of strategies that deal with the purchasing, selling, and/or combining of different companies or pieces of companies that are able to help grow a company or experience rapid innovation with either creating another business entity or investing research and development from the ground up (Hennepopf, 2009). Modern organizations are so highly complex and competitive that the old paradigm improving efficiency and the bottom line improves, is no longer all it takes to be successful. Companies must continue to reinvent themselves, put Board egos aside and look at the marketplace, their expertise, and what they can do to retain market share. With technology changing so

Mergers and takeovers are forms of external growth within a business. External growth occurs when one firm decides to expand by joining together with another. A takeover specifically refers to the gaining control of a firm by acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining with another firm to form a new combined enterprise, shares in each firm are exchanged for shares in the other.

According to experts, IT is labeled as the “root cause” for many merger failures due to lack of integration, failure of due diligence and the inability to facilitate synergies (“IT M&A”, n.d.). With eighty

natural route to success, but has tended to be a quick and easy way of

Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.

The inherent business practice of acquiring other , usually competitive, companies is part of a risky but potentially big payout for the risk taker. To understand the true and relative impacts of mergers and acquisitions, it is necessary to examine organizations that both avoid and undertake these types of financial deals. The purpose of this essay is to examine two distinct companies and their business strategies in order to understand the practicality and feasibility of corporate mergers.

One of the theories used to explain why firms engage in M&A is the synergy theory. Synergy theory or hypothesis asserts that the sum value of both individual firms before an M&A is lower than that of the combined firm (Seth, 1990). This increase in value is due to the effect of the synergy potentials which could only be realized by combining operational and financial resources of both firms. These synergies present the extra value created by merger. Thus, creating value for shareholders that at least equates or exceeds the cost of the acquisition should be the primary objective of any M&A. Essentially, synergies should be the sole principle in justifying companies to engage in M&A. In theory, financial synergy of a merger is realized when

In recent times, merger and acquisition are considered as one of the important steps for strategic growth. A company can plan to merge or acquire another company if it thinks it is a good investment, or they will earn a sound investment from it. The primary goal of any company entering into merger or acquisition is to boost the shareholder wealth. From a financial perspective, merger is carried due to diversification. It is the process of reducing the risks through investment decisions. For example, many a times, a company is highly at risk since it has done enormous investment in one industry then it can intend to buy a business in another industry (Sky Plc, 1990). This is termed as acquisition and can be beneficial for the host country.

In today’s world, Mergers and Acquisitions often occur within the companies and it business, definition of Mergers and Acquisition based on (Investopedia LLC, 2015) is an act of business between two company to form into whole new company by becoming into one, while acquisitions is a business action to undertake other business or company by buying over it without even changing anything except ownership.

With a clear strategic plan in place, it is much easier to identify when an acquisition can help accelerate a company’s strategy than when there is a poor strategic fit.

Mergers occur on a regular basis and raise integration challenges not only in relation to the actual work performed but for all staff members. Multi-national mergers can be even more challenging due to distance, the different national cultures, and different management styles.

The modern world has seen the formation of firms as a mechanism of integration, which enables individuals to develop an enterprise and to combine capital and expertise from different individuals. Mergers, especially the mega-mergers, change the market structure. Mergers and Acquisitions (M&A) have unparalleled capability to transform firm and supplement corporate renewal. Research in M&A has been done taking into consideration a multitude of disciplines, e.g. finance, economics, law, business, strategy formulation, organization theory, human resource management and sociology. M&A becomes a real time phenomenon due to the attention it receives from different walk of life.

Then in eighties, when the managers were not able to focus on the unrelated businesses, they went for de-conglomeration phase in which they sold of the unrelated SBUs so as to focus on the core businesses. The author discusses the framework of Corporate Acquisitions and discusses various types of acquisitions like Vertical, Horizontal, Product-Market Extension, and Unrelated Extension. The author further discuss the role of marketing in mergers and acquisitions as it is mentioned that marketing plays either direct role or a participative role in the decision making. For example, for customer service or product support, marketing plays a direct role in formulating strategic decision for the same.

Mergers & Acquisitions refers to corporate reorganisations that transfer an organisation’s ownership from one firm, the target, to the other known as the acquirer (Motis, 2007). The difference between a merger and an acquisition is that the former is a combination of two companies, whereas acquisition is when one company completely takeover another (Gupta, 2013.

There is an on-going debate regarding the issue of acquisition with regard to the advantages and disadvantages of acquisition. There are some claims that acquisition producing positive outcomes and drives companies toward success. However, the acquisition is mainly considered to produce more negative outcomes and drive companies toward failure. Company acquisition is better to be described from a point of considering as expansion processes where a company is purchasing another company for the purpose of maximizing profit. Even though there are some disadvantages of acquisition, but acquisition is a useful tool for business growth, such as management