As I mentioned in the thesis, mergers and takeovers are no longer something unknown, in some ways they are becoming a very important factor in everyday life. In the past there were only a few people who have had the opportunity to feel how it is to be employed in a company that was acquired or at the company that has decided for takeover. My opinion is that this trend will change in the future and that every employee will be witness to an takeover.
The first part of the thesis concerns the history of mergers and takeovers. In this part i have also describe all five merging waves, which accompained us till today.
In the second part I have briefly describe the basic concepts of connections banks, such as takeover, merger, acquisition. All of these forms can be broken down into friendly or hostile forms of connections. Of course, it depends how the target company will respond to the takeover or any other form of connection. In the case of a hostile takeover is good that the target company is aware of all types of mechanisms which can defend such an attack.
Defense mechanisms can be divided into those who are prepared and implemented by companies at the time of imminent threat of takeover, those are (passive defense measures) and in the group of activities which companies are using as an answer to concrete attempts to acquisitions (active defense measures) .
Below I have presented the types and forms of takeovers, which are very important, for the companies because they have to decide what is the proper commitment, for them. Then I have structured the types of takeovers that can be devided into four groups, depending on the degree of integration in the production chain and the company's activities in conjunction. They are known as horizontal, vertical, conglomerate and co generic acquisitions. For each of them I've added a concrete examples.
In the main, and the last part, I described the motives for bank mergers and takeovers.
This motives are:
• Economies of scope
• Growth and diversification
• Underprised banks
• To big to fail
• Increase market share
• Economy of scale
• Personal Motives
• Tax Motives
As we know there are many reasons or motives which lied comapanies to the mergers and takeovers. However, although the most common motives for takeovers are increase market share, achieve economies of scale and entry into new markets
In conclusion it may be said, that mergers and takeovers are very useful for businesses and employees in most cases, of course when they are followed by company motives and not manager personal motives.|