It’s been
sometimes said said there are no company mergers, only acquisitions.
Think about it.
It’s very hard to blend or merge two companies together and most mergers are not successful as a result; many reasons account for the lack of success.
Most takeovers are overpriced. At the start, there is always a managerial or economic reason that is supposed to make dollar and sense logic. but in the process of merger or acquisition negotiation, the price tag always appears to inflate.
Very often, the acquirer's market price will fall while that of the company which has been bought will rise. This is the market’s appraisal of an over-priced acquisition..
Yes, the deals are great for investment bankers, whose selling pressures, in addition to company CEO egos, are frequently the reason the deals are made in the first place. (See the Earl J. Weinreb NewsHole® Comments.)
It’s very hard to blend or merge two companies together and most mergers are not successful as a result; many reasons account for the lack of success.
Most takeovers are overpriced. At the start, there is always a managerial or economic reason that is supposed to make dollar and sense logic. but in the process of merger or acquisition negotiation, the price tag always appears to inflate.
Very often, the acquirer's market price will fall while that of the company which has been bought will rise. This is the market’s appraisal of an over-priced acquisition..
Yes, the deals are great for investment bankers, whose selling pressures, in addition to company CEO egos, are frequently the reason the deals are made in the first place. (See the Earl J. Weinreb NewsHole® Comments.)
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