General Electric and Amersham

Paper Summary:

This paper takes a look at the acquisition of Amersham by General Electric Corporation. It points out that Amersham is a major competitor in the healthcare industry and the acquisition was completed in 2004. The review is taken from the perspective of Amersham, the target enterprise. The paper also discusses an article that reviews Sarbanes-Oxley legislation and its effect on technology enterprise business culture.

Outline:
Target Overview
Amersham's Perspective
Acquisition Outcome
Conference Activity
Sarbanes-Oxley & Its Implications
Effect on E-Commerce
Sarbanes-Oxley Measures

From the Paper:

"In the year prior to the completion of the acquisition of Amersham by GE, the company began to reassert itself within its market segments. To do this Amersham increased its research and development (R&D) expenditures by 18% and prepared to launch numerous new products in the two years following the acquisition (Amersham, 2004). This investment in future technologies and products is further evidence that Amersham not only viewed the combination of Amersham with GE as an overall positive but intended to capitalize on GE's wider market reach and accessibility to a greater variety of sub-markets. These moves indicate the company's executives were forward planning their corporate and business level strategies based on integration into GE Healthcare which is where Amersham would be situated. Additionally, because of efficiencies gained by being integrated into its new parent corporation, Amersham expected to be able to reduce its operating costs by as much as $100m without incurring substantial personnel layoffs and reductions (GE, 2004). These outcomes all affirm the astuteness of this acquisition and that Amersham itself recognized the strategic importance of combining with GE rather than competing directly against it which would have been unsustainable in the long-term."

Sample of Sources Used:

• Amersham looks solid ahead of GE acquisition. (2004). in-Pharma Technologist, (online). Reviewed Mar.26, 2007 from: http:// www.in-pharmatechnologist.com/news/ng.asp?id=49960- amersham-looks-solid
• GE completes Amersham acquisition. (2004). DrugResearcher, (online). Reviewed Mar.26, 2007 from: http:// www.drugresearcher.com/news/ng.asp?id=51305-ge-completes- amersham
• Koprowski, G. (2005). Study: Sarbanes-Oxley law not changing technology business culture. E-Commerce Times (online). Reviewed Mar.26, 2007 from: http://www.ecommercetimes.com/ story/47467.html
• Miller, R. I., & Pashkoff, P. H. (2002). Regulations under the Sarbanes-Oxley Act: What Auditors/audit Committees Need to Know and Do to Comply. Journal of Accountancy, 194(4), 33+.
• Overview. (2007). Amersham Corporate Website (online). Retrieved Mar.26, 2007 from: http://www.amersham.com/about/index.html

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