Business Combnations Essay Example | Topics and Well Written Essays - 1000 words

Business Combnations - Essay ExampleMost of the mergers or acquisitions of LVMH happen to expand the company and to cross the geographic boundaries. A company interested to acquire another company has to look into every aspect of the functioning of the company. A company will have legion(predicate) departments and audit should be done on every departments accounts and then valuate the viability of merger of acquisition. After audit if it is found that functioning of all the departments are well and profitable then a memorandum is made amidst the companies.Mergers can take place only when there are healthy relations between both the companies. Mergers also depend on the percentage of shares acquired of the firm. If the company to be acquired has good standing in the market, high share value and high points in the share market then we can say that a company is worth to be acquired or suitable for acquisition. Merger or acquisition current has its impact on the employees and shareho lders who are the unforeseen assets of the company. It is well known that any merger will have its pros and cons. Some mergers happen for profit and some not to incur losses. Employees may or may not be benefited by the merger. The radical heed may not provide all the facilities unlike the precedent owner. The new company will definitely try to curb miscellaneous expenses and cut management costs. In order to cut costs they may shrivel number of employees working per department. After merger employees may be asked to change their shift timings, move from one department to another etc. employees need to co-operate with the new management.Mergers may also have its negative effects on the employees and marketing strategies then the relation between the management should be positive enough so that there is no misunderstanding between the employer and the employee. After acquisition the new company will have their own planning strategies that might be simply different and the employ ees need to co-operate and understand with new working policies and targets of the new company.One of the frequent reasons of merger (acquisition) failure is poor management and insufficient and poor management of financing comes second. For starting or relocating or expanding a business sufficient capital is required. Having good financing is not enough in attaining profits veracious knowledge and planning are required to manage it well. These help in strengthening the management of financing and avoid common mistakes like miscalculating or underestimating the cost. risk capitalists are the most common source of equity funding. Venture capitalists may be institutional risk takers, financial institutions, wealthy persons, etc. and most of them narrow in industries. Venture capitalists are risk takers and show interest only in three to five year old companies that result in more than average profits. LVMH intensified the challenge of global integration and is showing high-end res ults, impact on the part of economical evolutions on nations mainly on cities and individual persons smell standard. Because of the globalization and LVMH the technologies are exchanged. Globalization is having tremendous impact on cities. Cities are transforming into great industrial belts. As the industries grow there will be apparent impact on the economy. Job opportunities grow and innumerable colonies are developed. The growth is multi-fold and the technology exchange migration takes place.People of