Cross-border Merger and Acquisitions Free Essay Example, 3000 words

In the recent past, there has been a rapid increase in the number of cross-border mergers and acquisitions. Consequently, this trend has often been a catalyst for industrial globalization as well as a realignment of the industrial sector (Campbell, 2011). By definition, mergers and acquisitions can be described as the purchase of a company s ownership or part of its assets by another company. In other words, these types of transactions imply that existing assets are consolidated in a new shape. More often than not, the process of asset recombination occurs whenever corporate assets are not used in the best possible way (Depamphilis, 2013). Hence, the combination of two or more assets should be more valuable and worthwhile than the sum of its parts. The process of cross-border mergers and acquisitions can be organized into a logical sequence of steps that should be conducted in order to come up with a set of meaningful and feasible strategic alternatives (Evenett, 2003). There are co mmon elements that are pertinent when undertaking cross-border mergers and acquisitions namely; identification and valuation, payment of the transaction, and post-acquisition management Vadapalii, 2007). We will write a custom essay sample on Cross-border Merger and Acquisitions or any topic specifically for you Only $17.96 $11.86/page On the other hand, it is possible to identify firms whose market prospects can only be described as promising. Such firms fall within the structure of the emerging market and they can be either government or privately owned firms.