Mergers and Acquisitions (M&A) – Definition, Types, and Process

Mergers and Acquisitions (M&A) are increasingly becoming a novel approach for companies to wade through the competitive pressures of today’s globalized society. The increase of mega-mergers in today’s corporate world demonstrates the entrenchment of such transactions in modern business practices. Definitions of Mergers and Acquisitions “One plus one equals three”. This statement defines the main logic that informs merger and acquisition transactions. This logic stems from the fact that most companies aim to create a bigger shareholder value than the sum of the shareholder value that would ordinarily be realized if two corporate entities merge. The reasoning behind merger and acquisition transactions therefore stems from the fact that there is a greater value when two companies work together, as opposed to two companies working in isolation. Mergers and Acquisitions (M&A) are therefore joint activities where the activities of two or more companies merge to create one common purpose for both Continue reading

Decentralization in Cryptocurrencies

Decentralization is a defining characteristic of numerous cryptocurrencies and blockchain-based initiatives. By design, cryptocurrencies are decentralized and distributed, so there is no centralized authority or point of control. Decentralization in cryptocurrencies provides several benefits, including resistance to censorship and fraud, enhanced security, and better privacy. Decentralization carries several difficulties, particularly in terms of scalability and administration. Cryptocurrencies are a relatively young technology that is undergoing ongoing development. Therefore, there is no universal approach to Decentralization. Each project must carefully consider the involved trade-offs to develop a system that works. Adopting Decentralization in cryptocurrency makes firms more resilient and secure and gives users greater control over their finances. The policy enables investors to make independent decisions because the firm’s directives are not dependent on a specific authority. Consequently, this develops a system of trust, as the system must rely on its integrity to sustain the company’s longevity in the market. Decentralization Continue reading

Case Study: The Daimler Chrysler Failed Merger

In 1999, the Daimler Benz corporation of Germany merged with the Chrysler Corporation. In merging, the two companies aimed to create a company with a global presence and to bring the strengths that each company had to the global automobiles market. At first sight, the companies appeared to be equal partners in the merger. The companies at the time of the merger were almost equal in size. In addition, the companies appeared ideal for a merger because each had specific strengths which could be complemented by the other. Chrysler, founded and having its main operations in the US, was a company that emphasized innovation and flexibility while its counterpart, Daimler Benz, was a company characterized by structured, hierarchical management and German engineering excellence. These apparent equal partners were thus ideal for a mutually beneficial merger. In addition, the two companies were among the market leaders in their areas of specialization, and their Continue reading

Is Technology Hindering / Killing Creativity?

Recently, there have been numerous studies exploring the effects of technology on the youth population. Along with the significant growth in technology use, there are substantial gaps in knowledge about the rapid and sweeping changes it has on young people. Technology offers many benefits, including sustaining distance learning, improvements in communication, sustainable development, and transformation of goods and services. If it is universally accessible and used appropriately, technology can be a game-changer for the youth. It can significantly help address numerous problems regardless of a person’s disability, ethnicity, geographic isolation, or race. It can do so by providing youths with the knowledge and skills necessary to succeed in an increasingly digital world and connecting them to a world full of new opportunities. However, technology also has adverse effects on youth. Unarguably, technology is slowly reducing human’s imagination and creativity because people are highly dependent on the internet, are digitally distracted, Continue reading

Case Study: The Strategic Alliance of Fiat And Chrysler

Corporations, firms, and companies implement stringent measures to improve operations during periods of severe financial constraints. Many livelihoods depend on their stability and it would be unethical to fail to take action. In addition, it is necessary to protect the investments and interests of stakeholders who would be affected if the businesses collapsed. Therefore, it is crucial for organizations and companies to take necessary steps to safeguard interests of stakeholders. The 2009 strategic alliance between Chrysler and Fiat was a bold move towards saving Chrysler, a company that had operated for many years. The merger was a major setback for Chrysler to a certain degree. Chrysler lost a lot of money when it allowed Daimler to relinquish its portion of the company to Cerberus because the offer price was less than a quarter of the initial capital. However, the merger saved Chrysler because it was in a financial crisis that Continue reading

Case Study on Business Ethics: Olympus Corporation Financial Statement Fraud

Olympus is a Japanese company that specializes in medical imaging tools and photo/video cameras. Back in the 1980s, when the operating income of the company decreased due to the sharp appreciation of the yen, the Olympus executives started an aggressive financial assets management in order to shift losses off the company’s balance sheet. As a result, Olympus has managed to hide $1.7 billion of investment losses for more than a decade. The case of Olympus is the example of the financial statement fraud in which an employee intentionally causes a misstatement or omission of material information in the organization’s financial reports that eventually results in median loss of $1 million. To conceal the losses, the company has developed a tobashi scheme in which they booked the company’s assets at historical cost instead of fair market value. In 1997, the Japanese legislation was reformed, and since then all the assets should Continue reading