exactly nupur..most of mergers are totally ill timed as it was done when market was at his peak..and it erodes shareholders value when it falls...even tata-jlr as mentioned before is a case of it.. there has been job cuts in "first world countries as a cost reduction technique under "weathering...
i totally agree that M&A does value destruction..the same could be seen in worlds biggest M&A like vodafone -mannesmann which stood at $190 billions where value destruction after three years were as follows:
1st year-$ 97 billions
2nd year-$ 137 billions
3rd year- $ 79 billions
and the combined...
Re: Mergers and Acquisitions
hi i need help for Merger & Acquisition project for TYBMS - 100marks..i'm making a project on why biggest m&a are turning into failure....pls help
hi can u advice me on my topic which is further extension to your research of M&A ie why bigest m&a are turning into dismal failure....for eg. vodafone-mannersman deal in 2000 which was the biggest merger till date worth $185 billions and value destruction after three years ws close to $200...