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Advantages and disadvantages of mergers and acquisitions
Advantages and disadvantages of mergers and acquisitions
Advantages and disadvantages of mergers and acquisitions
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I wish to look into the Health Care and in this case I need to look into FTC Universal health facilities. The merger is intended to take place between it and another health care providing institution known as Psychiatric Solutions. The acquisition of the organization was estimated to cost close to $ 3.1 billion and it would have been the best thing to do in running of the organization (F.T.C, 2011). Merging the two organizations would be very effective in reducing the competition between other organizations that provide psychiatric services to patients especially in Delaware, Las Vegas, Nevada and Puerto Rico. Before the merge was executed there was premerger notification given to the involved partners of the merger. To execute the merger, there needs be executive signing of forms by all involved parties. The forms include FTC and DOJ which are also referred to as ‘filling of HSR form’ also known as ‘Notification and Report Form’ used in mergers and acquisitions (F.T.C, 2011). To attain the merger the government had to intervene and bring the intended companies together. Before granting merger forms The Bureau of Competition was committed to ensuring that involved companies do not create a monopoly in the market and hence reduce competition that may also affect the integrity of the services provided. In most cases the bureau controlling the start and the running of mergers uses the Hart-Scott-Rodino amendments to the Clayton Act (Clark, 2011). Before becoming a part of the merger it is important that FTC does an analysis of the merger to evaluate the effects the merger may have on the businesses. In addition, it is important that FTC gets to have a clear picture of the situation and how it is expected to affect the relations... ... middle of paper ... ...lenge in the operation of the organizations since there are more clients to be dealt with than was the case before merger. The FTC-UHS merger is also a challenge since there is only one management of all the clinics run in all the countries where other individual organizations were situated; there is need to improve on the management schemes. References Berry, A. W. (2010, May 31). Advantages and disadvantages of acquisitions and mergers. Retrieved from http://www.helium.com/items/1561489-mergers-and-acquisitions Clark, D. S. (2011, Jun 24). About the office of the secretary. Retrieved from http://www.ftc.gov/os/about.shtm F.T.C. (2011, Aug 12). In the matter of Alan B. Miller, a natural person; Universal Health Services, Inc., a corporation; and Psychiatric Solutions, Inc., a corporation. Retrieved from http://www.ftc.gov/os/caselist/1010142/index.shtm
The Physician/Hospital alignment model is the teamwork between physicians and hospitals to achieve the common goal of providing quality care to patients (med synergies). Physician/hospital alignment opportunities have come into play more predominantly in recent years due to quality, financial, and regulatory aspects of healthcare reform. Physicians and hospitals are more motivated to align now because the new healthcare reform requires an improvement on key aspects such as quality, cost, and efficiency. Moreover, an increase in patient numbers, a decrease in reimbursements, and a shift among new physician goals and values have contributed to the drive for this alignment. Physician/hospital alignment can be characterized in the range of tactical to transformational. Tactical alignments can include joint ventures, co-management agreements, volunteer medical staff, etc.
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
Cost cutting, discontinuation of product or services ,technological changes, and consolidation due to mergers and acquisitions are commonly legal ac...
Merged businesses can decrease many of their expenses. Cropped marketing budget, lower material cost, redundant employee layoffs, merging the patient’s database lessens the overall business costs. Often, merged business adopts new and innovative technology which may seem costly, but technology actually
In preparation to negotiate a merger between AAA HotelCo and Lambert Hotels, my team and I determined that both party’s interests complement one another. For example, Lambert desired a presence in Brazil and AAA wished to gain access to the lucrative tourist market in the United States. Therefore, we were confident we could strike a deal and achieve these objectives. However, due to the significant risks associated with the investment, both parties had several issues they wanted to settle in their favor. As a result, my team and I determined not only AAA’s principal interests, but also our secondary interests, so that we could successfully negotiate a win-win with Lambert.
Consultation and analysis of previous similar cases is important in handling a large merge of the magnitude presented here. From the way the new management of American Airline is handling the case, it is evident that that they must have consulted extensively and studied previous mergers. This is a major case study for mergers.
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The CareGroup Case Study comprises various components. The core concepts were broken down into the history of CareGroup itself, CareGroup’s IT, the collapse of the network, dealing with the collapse of the network, and the lessons learned from the entire situation (McFarlan, F. Warren, and Robert D. Austin, pg.1). CareGroup was formed on the basis of three major Massachusetts hospitals; Beth Israel, Deaconess, and Mount Auburn (McFarlan, F. Warren, and Robert D. Austin, pg.1). After a surprising merger of Mass General and Brigham and Women’s Hospital, all three hospitals in CareGroup suffered great financial losses (McFarlan, F. Warren, and Robert D. Austin, pg.2). Due to the multi-million dollar financial losses, CareGroup felt they needed a change, which is when they added Halamka to their team, naming him their CIO (McFarlan, F. Warren, and Robert D. Austin, pg.3).
Mergers is when two firms or entities, often of about the same size, agree to become one single new entity or organization rather than remain separately owned and/or operated. This kind of action is often referred to as a ‘merger of equals’. Financially, the stocks of both companies are migrated into a new stock with the new name of the company issued. (CIPD, 2009)
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
... employees trust going into such a merger is instrumental in influencing their decision to approve of such a merger.
At the time of the proposed merger between Nicholson File and VLN, there were a t...
Conflict seems to inevitable when trying to merge two companies. Conflict is described as the “Process which begins when one party perceives that the other has frustrated or is about to frustrate, some concern of his” (Kumar, 2009). Synergon’s CEO uses a “take no prisoners” approach and would fire most of the management team within 12 months of taking over a company using an approach they call neutron bombing. In cases where both companies are successful like in the case of Synergon Capital and Beauchamp you add even more conflict. The managers of Beauchamp are used to operating in a positive way that has produced profits for the company and you add Nick Cunningham a manager of Synergon who is used to restructure management in newly acquired poorly ran
Chaurasiya, K. and Profile, V. 2010. Advantages and disadvantages of acquisition | business management strategy. [online] Available at: http://businessofaccouting.blogspot.co.uk/2010/04/advantages-and-disadvantages-of.html [Accessed: 8 Mar 2014].
Mergers mean two or more companies combining together to form one business or firm. There are six different types of mergers: Horizontal, Vertical, Conglomerate, Market extension, Product Extension and Diversified activity.