My Firms Acquisition Essay Example | Topics and Well Written Essays - 1500 words

My Firms Acquisition - Essay Example Large enterprises acquire smaller firms to eliminate competition and to fetch a larger market share in the industry. However, still there are many challenges in implementation of acquisition process, which seemed to be as bleak as ever. This report is an effort to look into the acquisition process to answer certain questions. The Bidding and the Target Firms As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry.   What does your firm do and what does the foreign firm you are trying to acquire do?   Where are the firms based? Both of the bidding and target firms are based in United Kingdom. The bidding firm is an established retail outlet and looking forward to an expansion in Asia. The firm deals in consumer durable goods including food and beverage as well as other products like technology products. The company has its maximum share in food and beverage section. The company wants to explore the Asia n market. The bidding firm has taken a calculated approach while choosing both the target market and the company in there. China has been decided to be the destination country. This was because of China’s attractive economic growth and this can be used as a base to expand the company’s business in other Asian countries. The target company is a well known local retail firm in China with a large local customer base. The target firms also deals in consumer goods like food, beverage, technology products and other such household products. However, it is expected that the acquisition will not be a smooth process. It would also require the cooperation from all the employees, the management, investors and others stakeholders of the company. It will require a strong yet flexible strategy framework to make the process proceed and at the end to make it a success. Proceeding to the Acquisition You are very enthusiastic about the opportunity to be a leading captain of industry and the associated power, prestige, and income.   (You expect your salary, bonus, and stock option to double next year).   However, you are troubled by the fact that 70% of mergers and acquisitions (M&As) reportedly fail.   How would you proceed?  Ã‚   It has been reported that since many years a considerable number of merger and acquisition efforts had failed. The success or failure of the process was due to several reasons including implementation chaos, inadequate planning, cultural difference and insufficient attention paid to the soft issues such as human resource. The bidding firm would surely follow a proper acquisition framework, fit to address most of the above issues. The following image displays the various stages in the acquisition process. Figure: Acquiring Process  ­Ã‚ ­ (Source: Hubbard, 2001, p.4) In the acquisition process, planning, communication and implementation would be dealt in full with a focus on the human issues (Pande & Krishnan, n.d., p.1-3). In the following image, the entire process has been divided in five stages. It is very much important that the bidding firm must be clear about its objectives to acquire any firm. Once decided about the objectives, the