http:/assignment.lxws.net 留学生论文专业定制代写网站留学生Essay写作并购论文Mergers and Acquisitions(M&A)occur when two or more organisations join together all or part of their operations(Coyle,2000).Strictly defined,a corporate takeover refers to one business acquiring another by taking ownership of a controlling stake of another business,or taking over a business operation and its assets(Coyle,2000).Corporate takeovers have been occurring for many decades,and have historically occurred on a cyclical basis,increasing and decreasing in volume in what has been termed merger waves since the late 1800s(Sudarsanam,2010).There can be a number of distinct motives for corporate M&A and this short essay will discuss a number of these,drawing on theoretical and financial theory as well as empirical evidence to explain their rationale.The first group of motives to be discussed are those that relate and can be explained by the classical approach to financial theory(Icke,2014).These motives assume that firms do not make mistakes and acquire other companies as they believe that doing so will result in increased profitability(Baker&Nofsinger,2010)as they allow for the achievement of enhanced economies of scale or scope(Lipcynski et al.,2009).This theoretical perspective can be used to explain a number of motives.First,corporate takeovers can be used as a route to achieving geographic expansion.By acquiring another company in a different country or with more geographically-diverse operations,an acquiring company can expand its markets and thus expand its sales opportunities.The larger business post-acquisition can then,if implemented efficiently,benefit from economies of scale associated with reducing unit input costs,ultimately increasing profitability.A second reason for completing a takeover could be to increase market share within a market a firm is already operating in.This can result in increased profits through again allowing for increased economies of scale through decreasing unit costs and can also increase profitability by reducing the number of competitors in a market.Thirdly,acquiring businesses at different stages in the supply chain,known as vertical integration(Icke,2014),can allow for enhanced profitability as it can facilitate enhanced value in the supply chain and the potential to exercise control and scale benefits over inputs to production and the overall cost of output.Other motives for corporate takeovers can be categorised as being more consistent with the behavioural school of thought.This considers that M&A is driven by factors other than for pure profit maximization(Icke,2014;Martynova and Renneboog,2008).There a number of reasons why M&A may take place where the opportunity to benefit from scale economies is not the key driver.First,a company may engage in an acquisition in a bid to increase their size to prevent bids from other companies.This is consistent with the concept ofeat or be eaten(Gorton et al.,2005)which hypothesizes that during waves of M&A activity,firms feel vulnerable to takeover bids and as such feel compelled to engage in their own M&A activity in order to increase their size and minimize interest from potential bids.A second motive for M&A that relates more to the behavioural school(but does possess some economic basis)is the opportunistic M&A activity associated with management taking advantage of a relative increase in the value of its stock to acquire a target in an equity-funded acquisition.In this case,it is the perceived opportunity to buy another companycheaplythat drives the acquisition,rather than the profit motive if all other variables are held equal.What empirical evidence do we have in regard to value creation following a takeover for:l the bidder firms shareholdersl the acquired firms shareholdersMergers and Acquisitions(M&A)occur when two or more organisations join together all or part of their operations(Coyle,2000).A number of empirical studies have been performed in order to ascertain the extent of value creation following a takeover for both the bidder firm and the acquired firm.Shareholders of the acquired firm have consistently experienced positive value impacts(Icke,2012;Martynova and Renneboog,2008)following completion of a takeover,while evidence of value creation following a takeover for the acquirer has been inconsistent and is broadly considered to be inconclusive(Angwin,2007).This essay will discuss the empirical evidence of the value impact following corporate takeovers for both parties,looking at a broad range of evidence spanning the time following announcement to the fiscal years following completion of a takeover.The essay will briefly discuss the limitations of the evidence based on the highly differentiated nature of the M&A landscape and the presence of significant independent variables.It will then evaluate the results before arguing that for the bidder firms shareholders evidence of value creation is broadly i