37
anot her corporat ion.” It
is
said
t
hat all
mer gers ar e st at ut ory
mer gers, since
all
mer gers
occur as
specific
formal
t
ransact ions
in
accordance
wit h t he laws,
or
st at ut es, of
the st at es
where
t
hey are
incorp orat ed.
When
a
merger
framework app lied whenever
t
he
mer ger
part icip ant s
are comp arabl e
in siz e,
compet itive
p
osit on,
ion,
profit ability , and
market
cap it alizat ion,
it
is
called
“M erger of
equals”
(D
ePamp hilis, 2010).
2.6. 2. System
Analysi s fo r Compa ny M erger
M
erger
process
needs
a
coll ective
direct ion,
overvi ew
and
insight
int o
t
he coher ence
of
t
he
business
processes and
app licat ions (sy st ems)
to be merged;
failure
t
o
p
rovide mi ght result
in t hreatening
the merger
p
rocess to
become an
unsuccessful
op erat on (Broek,
ion (Broek,
2010).
2.6. 3. Moti ves behin d Mergers an d Acq ui siti on s
DeP amphilis
(2010)
said
t
hat
t
he
reasons M ergers and
Acquisit ions
(M &As)
occur are
numerous
and the
import ance of
fact ors
giving r ise t o M &A act vity
ivity
varies over t ime.
Tabl e 2–1 Common
The ori es of Wh at C au ses
M&A
Theory
M
ot ivat ion
Op erat ng sy nergy
ing sy nergy
Economi es of scale
Economi es of scope
Improve
operat ing effici ency
t
hrough
economi es of scale or scope by
acquirin g
a
cust omer,
supp lier, or compet it or
Financial
synergy
Diversification
New p roduct s/
current market s
New p roduct s/
new markets
Lower cost of cap t al
it al
P
osit ion t he firm
in high er– grow th
p
roducts
or markets
 |