Integration through strategy of mergers and acquisitions have become popular all over the world thanks to globalization, technological developments, liberalization, and saturated competitive business environment. On The Journal published on www.globusz.com, it has been announced that the number of M&A corporations has reached 5000 mergers, and the total value of the companies acquired is of about $1.7 trillion in 2000. In USA, it was the period where the most important and largest M&As were ever announced, it was the year where AOL and Time Warner were merged. Most of researches conducted on M&A activities have recognized that firms prefer to enlarge their activity by merging or acquiring new businesses rather than enlarging organically. However, in some cases, results collected are not the ones expected. IBM has made about 800 strategic alliances, Hewlet Packard about 300, and AT with T about 400. This proves that those alliances either with strategic suppliers, or with competitor or partners, they are an effective and a prompt access towards capital increase, talents discovery, effective distribution channels and manufacturing productive designs or operations. According to a study conducted by Coopers and Lybrand, companies that form strategic alliances grow 20% faster and gain 11% more in sales than those who choose to rely solely on their own expertise (Segil 1998). The study also identified that two thirds of middle level firms have entered some form of alliance: 37% with their customers; 35% with their suppliers; 15% with competitors. The gaining from M&As is said to be a means of protecting the market share and of expanding growth domestically and internationally, because it leads to more beneficial using of resources and assets, to more efficient managеmеnt, and to еcоnomies of scale, etc.  Thus, the question to raise is: do results of M&As create real value for the shareholders of acquirers?

In today’s business world, it appears to be impossible for companies to survive without expanding through deals that result in mergers and acquisitions. Mergers and acquisitions represent a favourable medium of growth. However, studies indicate a high rate of failure in these operations. Evidently, there are areas that are mismanaged during the course of a merger or acquisition.   If organizations make a decision to go through a merger or acquisition, it is vital that they devote significant attention and resources to understand and deal with opportunities and challenges presented during its processes. Through our research we have come to identify four important aspects as integral to a successful merger and acquisition. These components: culture, synergies, leadership and politics, each independently and together when mismanaged become the source of a merger or acquisition failing.  If we are to envision the newly formed organization post a merger or acquisition as the structure, we see these four components as the pillars of this structure.  The strength or weakness of these pillars will determine the future of the newly formed organization.  At the other end of the spectrum, the very core aspects that result in success, we believe when mismanaged can spell catastrophe for the organization. However, lessons in mismanagement in these very four strategic areas can be the game changer that could possibly turn a merger and acquisition failure into success. It is only through an analytical study of the mismanagement pertinent in these four individual areas that we arrive at answers so that we may change this dominant trend of failure in mergers and acquisitions.

This study is mainly working on the influence of the staying employees¡¦ citizenship behaviors and working attitude under corporate merger, under the background of integration upstream parts and components by optoelectronic company. The subjects to study are organizational commitment, job insecurity and job satisfaction.. This study aimed to understand employees¡¦ mentality and coworker relations by interviewing 3 management members and 7 employees by adapting qualitative analysis Those who accept to stay in the merged company usually feel unsafety in their mind and show bad interaction with employees of the merger. The job insecurity will affect employees¡¦ organizational commitment, job involvement, and job satisfaction. The most important is that the support from the direct supervisor will strongly influence the job satisfaction and performance of subordinators. The better interaction, the stronger support from the direct supervisor which subordinators will feel.

This study investigates the effect of board networks on M&A transactions. I select 331 samples of M&A transactions among U.S. Fortunate 500 companies which are also U.S. public companies from 2002 to 2011. In addition, I use definition of board networks by Cai & Sevilir (2012) to identify whether there exist board networks in each sample. About research design, first I use event study methodology to estimates cumulative abnormal returns (CAR), and then examine the relationship between the board networks and M&A performance through regression analysis. Empirical analysis results are as follows:¡G 1. M&A announcement brings significantly negative abnormal returns to the U.S. Fortunate 500 companies. 2. The board networks will decrease the M&A performance for the U.S. Fortunate 500 companies. 3. The board networks are not efficient information channels for the U.S. Fortunate 500 companies.

This paper applies a real option approach to analyze the optimal decisions of mergers, stock offers, and cash offers. We use the two-stage approach to investigate the optimal decisions of mergers and acquisitions. At the first stage, the merger company has to choose the target company to obtain the largest synergy, which comes from the increasing return to scale, improved performance, acquired R&D, and increased market power. At the second stage, the main work is to determine the takeover threshold (timing), exchange rate of stocks or bid premium under the three forms of mergers and acquisitions. We find that the increasing return to scale, improved performance, and increased market power will lower takeover threshold and speed up merger activity. Finally, the forms of mergers and acquisitions will affect the timing and the returns of the acquirer and acquiree. Cash offers will happen even later than mergers and stock offers. This thesis also constructs a model to study the multi-firms¡¦ merger strategies and derives the multi-firms¡¦ synergy value, timing and terms of merges. In addition, we study the effect of firms¡¦ competitive intensity, market power, fixed cost, and demand shocks on the decisions of merges. We find that the increased competitive intensity, increased market power, higher fixed cost, and lower demand shocks will enhance the motives of merges and accelerate merger activities.

Taiwan ¡¥s mergers and acquisitions activities are more and more frequent in recently. The transaction cases grow from 1999¡¦s seventh to 2005¡¦s fifty-one. Although in the past research, our nation scholars seldom pay attention to this topic. From 2002 to 2005 our nation important management Journal has only four articles. Therefore, Taiwan ¡¥s researchers have many research space to expand it. Prior research on M&A founded that in nation ¡¥s enterprises M&A success opportunity are more bigger than M&A in the across nation. For this reason, many scholars suggest the key success or fail factor is ¡§culture different¡¨. Beside this answer, I want to find the others factor by case study which is including BenQ Thunder Tiger and Yageo that will affect Taiwanese enterprises M&A European and American enterprises. Then Taiwanese enterprises which are horizontal M&A(M&A that take place within one industry, often between direct competitors)can reference the research result. The results indicate that: Merger and acquire between European and American famous enterprise often over reliable result in due diligence not exactly. Thinking difference and nation superiority are main reason which cause conflict between acquire and acquired firm. Taiwanese enterprises generally do not take ground for human due diligence, Taiwanese enterprises which lack of international people are not good for postmerger integration. Mergers and acquires strategy is the least choice to enter overseas market.

CROSS-BORDER BANK ACQUISITIONS AND COMPANY PERFORMANCE: THE CASE OF EMERGING MARKETS Demir, Mert MBA, Department of Business Administration Supervisor : Assist. Prof. Dr. Seza DaniSoglu May 2008, 103 pages In recent years, cross-border mergers and acquisitions have spurred in the global economy. With the breaking down of barriers around national economies, those economies that used to be centrally-planned and closed in the past have emerged as economies that offer invaluable investment and risk diversification opportunities that investors seek. As a natural result of this change, these economies become major targets for foreign investors. This thesis examines the impact of this foreign investment trend specifically for those bank mergers and acquisitions that take place in emerging economies. The impact of these transactions on the acquirer and target company shareholders and firm performance are analyzed and it is found that neither parties&rsquo / shareholders receive a significantly positive benefit in the short-term but there are significant benefits in the long-term. Moreover, while these bank consolidations resulted in improved profitability, efficiency and asset size for the target firms, no significant change is observed in deposit size, market share and capital adequacy of the targets. Similarly, improvement in profitability is evidenced for the acquirers while no major change in leverage risk is observed.

Abstract In stock-exchanged airline mergers, the determination of an exchange ratio is an important issue. The purpose of this paper is providing a simulative study of exchange ratio determination for airline merger in Taiwan. The paper is based on the Larson-Gonedes merger exchange ratio model(1969) and extends it to consider marker risk. In addition, we use the exponential smoothing model to estimate the expected post-merger price-earnings ratio. Our sample consists of China Airlines and EVA Airways. We find that the L-G model indicates the interval of exchange ratios which will enhance, or at last not cause any diminution in the wealth positions of all parties to a proposed airline merger. Also, the bargaining area offers some information to help merger candidates to negotiate final actual exchange ratio.

none

The dawn of international banking has already sparked some of the most well known mergers in the financial industry. Following the recent merger waves of the major developed economies, Taiwan¡¦s industry also engages merger and acquisitions to pursue external growth. Firms may merge for various reasons and generates totally different result in shareholder¡¦s wealth. Thus, capture the factors which drive the merger activity is very critical issue to all the participants of Taiwan¡¦s equity market. The objective of this study is to analyze the determents of target selection in the merger and acquisition activity in Taiwan¡¦s financial industry. The subject what the research are going to study and development. There is acquired Cooperative Association what characteristics are owned. Logit regression is utilized to investigate a sample of 12 listed firms which engaged mergers after the government has passed the Financial Merger Institutions Law over the period from 2000 to 2007. Consistent with literature of merger and acquisitions, the empirical result suggests that the firms with weaker debt structure, good loan quality and Capital Adequacy, to become good targets.