Mergers and acquisition Essay Example | Topics and Well Written Essays - 3500 words

Mergers and acquisition - Essay Example Firms in different industrial sectors tend to respond differently when entering a M&A process. Current study focuses on the effects of M&A process on the increase of shareholders value and the creation of shareholders wealth. Reference is made on a specific industrial sector: the financial services industry. The case of a recent merger of two financial institutions - banks in Britain, Lloyds and HBOS, is used in order to show all the potential aspects of the issue under examination. Employees from both these institutions have accepted to participate in the study. The results - along with the material published in the literature - indicate that M&A can be a valuable strategic tool for the increase of a firm's profitability; however, its effects on the creation of shareholder wealth are not quite clear. The study focuses on the examination of the following issues: a) how can mergers and acquisition benefit a firm's shareholders, b) which are the effects of mergers and acquisition on a firm's equity' c) are there specific measures taken for the increase of shareholders' wealth in the case of a merger or acquisition, d) which is the role of state in the development of the relevant procedure - control by antitrust authorities, e) does the leadership style affects the development of mergers and acquisition' And f) does the n... 2. Literature Review The development of M&A through the decades has been continuous; the specific strategic tool has been used by managers in order to support the improvement of their firms' performance - even if the results have been found to the different in each particular firm. M&A have been used since the 1940s but their use was then limited; through the years M&A have been significantly developed reaching in 1980s an important level. However, it was necessary that changes are made on the existing M&A practices in order to meet the demands of the market but also the firms' potential to respond to the requirements of the particular processes. Regarding this issue it is noted that 'the market for acquisitions changed dramatically in the 1980s as government policies facilitated 'mergers for efficiency' rather than 'merger for diversity'' (Lubatkin et al., 1997, 59). On the other hand, it is proved that the effects of M&A on a firm's performance can be differentiated - the financial strength of the acqu irer may not directly supported or increased - long term benefits are rather to be expected in case of development of the relevant process. The above issue is highlighted in the study of Flanagan (1996) where it is noted that 'purely related acquirers benefit more than purely unrelated acquirers; acquiring firm stockholder returns were also higher if the acquisition was friendly or a tender offer' (Flanagan, 1996, 823). At a next level, it is noted that 'acting in a socially responsible and lawful manner is a necessary, though not sufficient, condition for increasing shareholder wealth' (Frooman, 1997, 221).Of course, it is possible that the effects of M&A do not appear within a short period after the completion of the process. The reasons

Free Energy Research Paper Example | Topics and Well Written Essays - 2500 words

Free Energy - Research Paper Example Renewable sources of energy are those sources that can be replenished. Making a transition towards more renewable forms of energy would result in independency from local sources of energy and a more decentralized production of energy that is less vulnerable to supply cutoffs. Solar energy can be harnessed by concentrating solar power (CSP) or photovoltaic (PV) technology. The economic potential in industrialized countries, and the shift towards more renewables-intensive industry in both the US and China, is an optimistic sign for solar energy. Sustainable development is a hot topic in the world of politics today. The reason why it has attracted so much attention signifies a looming crisis and the repercussions it would have on people and the environment both. Numerous summits and conferences have been conducted and hundreds of organizations all over the world have met and discussed solutions to the predicament the world faces if it continues to use its energy sources the way it is doing now. The contours of the reason for taking such steps are worth pointing out. The population of the world is increasing at a rapid rate and has tripled over the past seven decades. It had reached an alarming figure of 6 billion at turn of the twentieth century. The rapid increase in the population does not come without its share of problems. Mankind is plunged into a yet deeper abyss of poverty, scarcity of resources and shortage of non-renewable energy reserves. Stocks of resources are being depleted swiftly. Where people in many developed countries have taken energy for granted, the developing countries are facing the brunt of the global energy crisis. The environment is deteriorating due to deforestation, increase in the greenhouse gases, extinction of species and climate changes. Increasing population has caused a dearth of food in many poor countries, where thousands do not have access to clean drinking water and are suffering from