The Difference Between Merger And Acquisition Essay

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Merger and Acquisition

These two terms, merger and acquisition, often refer to the act of the companies joining; when two separate business firms combine to create a new venture, it means that they have merged. Alternatively, an acquisition refers to a takeover of one entity by another. The two can be completed so that there can be an expansion of the companys reach or in an attempt to gain the market share to create the value of the shareholder. Typically, the reason why we have merged is to reduce the operational costs, to boost profits and revenues, and to expand into new markets. In an acquisition, the smaller company ceases to exist, and the bigger company operates the management. In the blog below, the topics covering a current contemporary issue are; creating value, financial investment, and financial value. These will be discussed about the merging and acquisition concept.

The contemporary issue in the United States concerning business and finance is a rise in consumer prices, which rose by 6.8 percent in November. According to the consumer price index, this was the highest level of inflation since 1982, which has been released recently (Akan). The greatest increase was seen...…be interpreted as violating someones contract rights and property. The ethical issues that arise due to merging are; unfriendly takeovers, termination of employees, and relocation of employees. Hence, it is important to have pre-transaction success factors like trust between parties, quality plan, and execution of the plan, which can help deal with the inflation level in the economy.

In conclusion, the concepts of financial ethics, financial investments, and creating value can be applied in the real world by reflecting on how they can be applied to the contemporary issue of inflation that has happened lately in the United States. The above discussion reveals…

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Akan, Mustafa, and Arman Teksin Tevfik. "Fundamentals of finance." Fundamentals of Finance. De Gruyter, 2020. https://www.degruyter.com/document/doi/10.1515/9783110705355/html



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