How do mergers and acquisition affect a company's liquidity, share price?
In standard expressions, for the larger company, who is acquire or contained by the bag of a merger (such as Symantec-VERITAS), how is the comapany's financial ratio and statistics artificial? E.g how would Symantec's stats be artificial within the example above.
I am looking for generic answers here, or use of the above example. General points on what may ensue surrounded by the casing of mergers and acquisition.
Thanks within mortgage, for your time. Any serve would be much appreciated.
Answers:
In oodles cases the acquire company's share price and liquidity are negatively artificial. The origin is simple, the acquire company have of late expended assets on a business project that have an shy outcome.
If the acquire company is competent to integrate the acquire company's strenghts near its own, the upside will be much better than life growth would allow within indistinguishable time term.
That said, the cleverness to fully integrate seem a spectacular act beyond the achieve of even totally worthy companies.
For substandard acquisition look at Quaker Oats attainment of Snapple a few years ago. Once they have Snapple within house they be totally unprepared to leverage the asset.
For successes look at Nature's Bounty roll up of so-called "inherent products" manufacturer. Very in good health done indeed.
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I am looking for generic answers here, or use of the above example. General points on what may ensue surrounded by the casing of mergers and acquisition.
Thanks within mortgage, for your time. Any serve would be much appreciated.
Answers:
In oodles cases the acquire company's share price and liquidity are negatively artificial. The origin is simple, the acquire company have of late expended assets on a business project that have an shy outcome.
If the acquire company is competent to integrate the acquire company's strenghts near its own, the upside will be much better than life growth would allow within indistinguishable time term.
That said, the cleverness to fully integrate seem a spectacular act beyond the achieve of even totally worthy companies.
For substandard acquisition look at Quaker Oats attainment of Snapple a few years ago. Once they have Snapple within house they be totally unprepared to leverage the asset.
For successes look at Nature's Bounty roll up of so-called "inherent products" manufacturer. Very in good health done indeed.