Does M&A always create value?

khaitansaket

not always it has been prove many times before that m and a does not always create value

anyzen

I can't accept your view of destruction of wealth by M&A. M&A is a double edged sword. Careful valuation of M&A is necessary. It also depends on situation like economy.

shikhare.sanket

mba only teaches u to be presentable and sharpens ur soft skills....thats all.... wateva v study has on minute relevance to corporate life

jack2009

The Global Wireless Markets continued to grow rapidly especially in India and China where the carriers (together) are adding over 20M new subscriptions every month. India crossed the 400M subscription mark this month while China whizzed past 650M in Q109. Overall, the global subscriptions penetration edged past 60%. During 2008, revenues further tilted towards data services, increasing 17% from 2007 EOY. The overall global mobile revenues (including equipment) for the year reached the 1 Trillion dollar landmark in 2008, with over $830 billion attributed to services revenues. Data revenues now account for over 20% of the global service revenues.

For some leading operators, data is now contributing close to 40% of the overall revenues. However increase in data ARPU is not completely offsetting the drop in voice ARPU for most operators. From the true and tested SMS messaging to the new services such as Mobile Advertising, Social Networking, Commerce, Mobile Wallet, and others, different services helped in adding billions to the revenues generated in 2008. The US market expanded its lead over Japan in mobile data service revenues for the year and is unlikely to cede ground in the months to come.
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www.wasserbettenhife.com
internet home business

rahul1976

It would depend on whats the basic premise of doing the M&A, is it just a case of increasing the share value or is thier a strategic value to be derived from combining the 2 companies.

vishal_more

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 entity was close to $365 billion..and eight years after the deal the value of Vodafone in terms of market capitalisation stands at $ 161 billion, down by a sickening $203.6 billion, a fall of 53%..making it the biggest loss making company in the history of mankind..
the same is seen in case of AOL-Time warner, world com- sprint to name a few..
most of these M&A are mistimed and even some due to cultural clashes..but at the end stakeholders have to bear the loss...

dgr8hub

thanks sir for the upload..am thankful for your support.thanking you..

nupursharma

the merger of indian airlines and air india has resulted in a disaster therefore its not right to say that m & a always create value.

krish6975

Good piece of work on M&A. M&A does create value, more so ever in business prespective. However, i feel that the cultural aspect is not given that priority during such transactions.

vishal_more

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 the storm" where almost 2000people have already been laid off..and forget about jaguar even nano as a parting gift to these employees would make the going significantly less painful ...!