Skip to main content

Posts

Showing posts with the label Reasons of success

What is Demerger ?

Introductions Demerger  Demerger or Spin-off refers to a business strategy where a company particularly the larger company is divided or split into two or more units i.e., into the number of small units operating separately. The objective of all smaller units is the same. Thus, the shares are individually sold to the public. Generally, demerger is done so that each of the units can perform its business efficiently by focusing on the specific task which will contribute to the easy achievement of the objectives.  In order to sell the subsidiaries and smaller units of the company, the demerger is adopted. The main objective of the demerger is to divide a company into various units for achieving the specialization in a particular segment. Demerger or spin-off is just the reverse strategy of merger which implies the strategy to join the number of companies so that the firms intend to work together under the same roof.  Alternatively, the demerger is the opposite of 'uniting of

Failure, Reasons and Values

Ways to Measure the Success of Merger and Acquisition The ways to measure the success of merger and acquisition are as follow:- Achieving Strategic Goals and Objectives:- The first measure of success is the degree to which the merger has moved the combined firm towards achieving its strategic goals and objectives. It is important to understand that merger is not a strategy, but a means of implementing strategy. This difference is critical. A firm's strategy must be driven by clients and practices. The likelihood of a successful merger is higher when firms have identified and agreed upon their long-range business goals and the steps necessary to achieve them. Each firm should be able to articulate why merger will help them to achieve their long-term vision and improve on their ability to serve clients. Economic Factors:- The second type of merger success measures are economic ones, which are the most difficult to define. The corporate Return on Investment (ROI) measur