Mergers & Acquisitions

Mergers & Acquisitions are new & quite confusing to me. I have to write an 1100 word essay which I compare and contrast M&A failures.

a. In the paper, discuss the reasons why an M&A fails (technical and legal insolvency, and bankruptcy).

b. Once the failure of an M&A occurs, what happens to the assets of both companies? In the paper be sure to consider what happens to the stakeholders, image of the company, price per share, market share, company assets, position in the industry, goodwill, and service capability within the industry.

c. In the paper, be sure to compare and contrast the two to three forms of corporate restructuring. Would you recommend any of the following? Be sure to defend your position:

1) Spin-offs
2) Divestitures
3) Liquidation
4) Carve-out

Please be sure to cite references.

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...ffective leadership to carry out the mergers and acquisitions. The result is that erroneous steps are taken to implement the change. This leads to uncertainness and ambiguity about the objectives of the merged company.
After an mergers and acquisitions takes place, failure occurs because the tasks required to do the integration are not carried out. Moreover, several mergers and acquisitions have failed because the changes that were carried out were inappropriate for the acquired company. The most common reason for mergers and acquisitions failure is the lack of cultural integration. There are several mergers and acquisitions that fail because in the euphoria of the acquisition, the companies disregard the consequences to their customers. The result is a drastic fall in revenues, profitability and consequent bankruptcy.

b. Once the failure of an M&A occurs, what happens to the assets of both companies? In the paper be sure to consider what happens to the stakeholders, image of the company, price per share, market share, company assets, position in the industry, goodwill, and service capability within the industry.
The assets of the acquired company may not be of much use to the acquiring company. Consider the example of ITT that acquired several companies between 1980 and 1990s. ITT was not able to liquidate the assets of the acquired company. If there is a failure, the acquiring company can sell off the acquired company. For example, after acquiring NCR, AT&T sold it off at a loss of million of dollars. Typically, the assets of the merged company that fails depreciate in value and often turn to scrap. Real estate is sold off to pay fixed costs, part of the assets that are mortgaged are taken over by the creditors. Finally, if the company goes into liquidation, its assets are sold by the receiver/executor appointed by the court.
The stakeholders suffer when mergers and acquisitions fail. The employees are fired. The shareholders suffer because the value of their stocks falls. The image of the company is severely dented, the customers do not buy their products, banks and financial institutions do not give loans, suppliers do not sell on credit and good employees leave the company. The price per share declines. The price of the shares might have ...