Take Overs + Acquisitions

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  • Created by: Jess
  • Created on: 01-12-12 19:26
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  • Take-Overs & Acquisitions
    • Apply to PLC's.
    • When another party purchases the majority of shares in another business
      • 3% - must make a declaration to the stock market
      • 51% but can be a lot less due to the highest amount
    • Reasons
      • asset *********
        • sell off the profitable sections and close the rest
      • quick growth
      • defensive reasons
      • synergy
      • economic changes
      • reduce competition
      • can be cheaper than growing internally by organic growth
    • Impact on different stakeholders
      • employees
        • job loses
        • greater job prospects
        • asset *********
        • disagree with ethics
        • insecurity
      • customers
        • higher prices
        • reduced choice
        • economise of scale - reduced prices
        • insecurity
      • managers
        • insecurity
        • increased stress
        • asset *********

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