Mergers and Acquisition Case Study by eddievedder

An examination of the business strategy of acquisitions, with a focus on General Electric's frequent acquisitions.
# 145612 | 2,631 words | 10 sources | APA | 2010 | US
Published on Nov 18, 2010 in Business (Companies) , Business (Finance, Investment and Banking)


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Description:

The paper considers General Electric's strategy of acquisitions and how GE can consistently enjoy high performance with such a risky corporate strategy. The paper looks closely at General Electric's skill with acquisitions in its integration of reinsurers from Europe and the United States. The paper discusses the skills that firms can develop as they experience acquisitions or other large-scale organizational changes. The paper provides another example of a company's successful acquisitions as well as an example of a company that failed and did not learn from its many past acquisitions. The paper includes a table.

Outline:
Introduction
Financing Trends
Acquisitions as Learning Experiences
Skills Gained from Experience with Acquisitions and Large-Scale Changes
Conclusion

From the Paper:

"Even the best-intended acquisitions can result in financing-related corporate indigestion. For example, Hilton Hotels absorbed a $125 million loss to restructure debt after its acquisition of Bally Entertainment. Furthermore, a financing arrangement that makes sense for one combination may not work elsewhere. When First Union agreed to acquire Signet Banking in a stock transaction, the share prices of both companies fell. On the other hand, both Travelers and Citicorp enjoyed increases in their share prices when they agreed to join forces in an all-stock deal."

Sample of Sources Used:

  • Thomas and Betts: Think acquisitions, 2004. Mergers and Acquisitions, July/August: 49.
  • Cohen, W. M. and Levinthal, D. A. 2000. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35: 128-152.
  • Brannigan, M. 2006. Quintiles seeks mother lode in health 'data mining'-- Costly acquisition may lead to adapting 'Wal-Mart' style to pharmaceuticals. Wall Street Journal, March 2: B4;
  • Morse, D. 2000. Quintiles to buy Envoy in $1.4 billion stock deal. Wall Street Journal, December 17: A3, A6.
  • Hitt, M. J. Harrison, R. D. Ireland, and A. Best, 2002. Attributes of successful and unsuccessful acquisitions of US firms. British Journal of Management, 9: 91-114.

Cite this Case Study:

APA Format

Mergers and Acquisition (2010, November 18) Retrieved August 25, 2019, from https://www.academon.com/case-study/mergers-and-acquisition-145612/

MLA Format

"Mergers and Acquisition" 18 November 2010. Web. 25 August. 2019. <https://www.academon.com/case-study/mergers-and-acquisition-145612/>

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