17692708
Description
Mind Map by Jehan Carlos Guerrero, updated more than 1 year ago
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Types of Integration
- Join
Venture
- Two or more companies agree to start a new business or project together They invest
capital and share resources and costs.
- Two or more companies agree to start a new business or project together They invest
capital and share resources and costs.
- Merger
- Two or more companies of similar size decide to combine and form a single
entity
- Two or more companies of similar size decide to combine and form a single
entity
- Acquisition
- These two terms are used when one company buys another one. In an acquisition, the acquirer can purchase
100% off the shares in the target company or just enough shares (more than 50%) in order to have the
controlling interest
- ADVANTAGE
- gain greater size and competitiveness in the market
- grow through synergies, whether operational or financial
- It is a good way to penetrate a new market. It does not imply certain barriers to entry and represents savings
in areas such as research
- It is a good way to penetrate a new market. It does not imply certain barriers to entry and represents savings
in areas such as research
- grow through synergies, whether operational or financial
- análisis profundo de la oportunidad de mercado, los recursos de las empresas, restricciones legales y
regulatorias
- gain greater size and competitiveness in the market
- DISADVANTAGES
- deficiencies in the investigation of the company to merge or acquire
- Acquisitions derive problems related to possible hidden debts or contingencies in the financial,
accounting, commercial, fiscal areas.
- a particular company culture, a philosophy of its own, a way of working and a leadership model
- a particular company culture, a philosophy of its own, a way of working and a leadership model
- Acquisitions derive problems related to possible hidden debts or contingencies in the financial,
accounting, commercial, fiscal areas.
- deficiencies in the investigation of the company to merge or acquire
- ADDITIONAL TIPS
- Statistics are not necessary for the
development of the entire financial
operation
- the figures can be influenced by the period of
time in which they are taken to measure the
acquisition
- THE BEST EXAMPLE
- The Disney company acquired its direct
rival as it is fox in order to create a
more consolidated company with
greater power in the market
- The Disney company acquired its direct
rival as it is fox in order to create a
more consolidated company with
greater power in the market
- THE BEST EXAMPLE
- more value is added if you focus on
your competition to make the
acquisition
- Statistics are not necessary for the
development of the entire financial
operation
- ADVANTAGE
- These two terms are used when one company buys another one. In an acquisition, the acquirer can purchase
100% off the shares in the target company or just enough shares (more than 50%) in order to have the
controlling interest
- in the field of productión, integrations can be divided into:
- HORIZONTAL: the companies deal with the same activities;
- VERTICAL :the companies involved in the integration are in the same
industry, but they operate at a different stage of production or distribution
- CONGLOMERATE MERGERS: the companies have totally
different activities.
- HORIZONTAL: the companies deal with the same activities;
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