Mergers and Acquisitions Case Study by Jay Writtings LLC

Mergers and Acquisitions
A look at the financial strategy, corporate governance and ethical issues of Berkshire Hathaway's acquisitions.
# 119833 | 1,424 words | 4 sources | APA | 2010 | US
Published on May 26, 2010 in Business (Companies) , Business (Finance, Investment and Banking) , Ethics (General)


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Description:

This paper discusses the reasons why corporations might choose to merge or acquire other firms to facilitate growth opportunities. In particularly Berkshire Hathaway, an insurance firm listed in the New York Stock Exchange is examined. The author covers the particular issue of acquisitions by detailing how the issue relates to Berkshire Hathaway in terms of financial strategy, corporate governance and ethical issues. Additionally, an evaluation of the financial situation prior to action, assessment of financial situation after the action was taken as well as the success of Berkshire Hathaway's acquisition strategy.

Outline:
Acquisitions
Financial Strategy
Corporate Governance and Ethical Issues
Financial Situation Prior to Acquisition
Financial Situation After Acquisition
Successful or Not
Conclusion

From the Paper:

"Mergers and acquisitions, in the eyes of the acquirer, deal with purchasing or combining separate companies; usually in an effort to increase growth opportunities. Firms like Berkshire Hathaway often seek to acquire other firms, rather than build a separate business from the ground up. This aspect of business--which provides a variety of benefits--is concerned primarily with long-term growth, as the process of acquiring another firm is often capital intensive. The acquiring firm may buy all or most of the target company's ownership stake, thereby assuming full control. These transactions will typically be funded by cash or by equity using the acquiring firm's stock--even a combination of the two; and are done for a variety of reasons."

Sample of Sources Used:

  • Berkshire Hathaway (2007). Form 10-Q, for the quarterly period ended March 31, 2007. United States Securities and Exchange Commission.
  • Brealey, R.A., Myers, S.C., & Marcus, A.J. (2007). Fundamentals of Corporate Finance (5th ed.). New York: McGraw-Hill Irwin
  • Buffett, W.E. (2006). Code of Business Conduct and Ethics. Berkshire Hathaway, Inc.
  • Krantz, M.K. (2006, October 24). Berkshire Hathaway Stock Hits $100,000. USA Today. Retrieved 13 March, 2008, from http://www.usatoday.com/money/markets/us/2006-10-24-berkshire-usat_x.htm

Cite this Case Study:

APA Format

Mergers and Acquisitions (2010, May 26) Retrieved August 25, 2019, from https://www.academon.com/case-study/mergers-and-acquisitions-119833/

MLA Format

"Mergers and Acquisitions" 26 May 2010. Web. 25 August. 2019. <https://www.academon.com/case-study/mergers-and-acquisitions-119833/>

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