Strategic Corporate Finance (Essay Sample)

Strategic Corporate Finance
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Strategic Corporate Finance
Merger and acquisition refer to the corporate strategy aspect, management and corporate finance dealing with the buying, selling and coming together of different companies that can support, finance, or assist the rapid growth of a company in a given industry without necessarily creating another entity of business.
Companies use mergers for the purposes of their expansion of operations that aim at long term profitability increase. When a company decides to move forward by use of mergers and acquisitions, there are several types of actions that differ, a company can take. Mergers usually occur in a setting that is consensual where executives from the purchaser are assisted by executives from the company that is targeted, in a process of due diligence, to ensure that both parties benefit from the deal (Sahoo, 2010).
Bank of America would be a very ideal company with which to merge. This is because of their exemplary performance in the business sector to the point of recognition and ranked among the top 10 best companies in matters of finance. It has its operations running in 50 states in the United States and an additional 40 other countries outside the States with their offices in Europe, Asia, Latin America, the Middle East and Africa. Apart from banking, asset management and investing, it also offers other services and risk management products and is very active in trading, investment banking, and wealth management. A merger with Bank of America will mean exposure to the global market and better security to the shareholders. The bank sponsor’s the employee networks for community activities ranging from recreational activities such as leagues for company athletics, to groups of public speaking. The bank has also gotten a household name (Steinberge, 2010).
The opportunity for growth that would be availed from a merger with Bank of America is very promising and, as such, in financing a takeover, bank financing would be most appropriate. This is because based on the asset base of the company; it would be most affordable and easier to acquire the financing facilitation.
Deloitte is also a potentially viable company suitable for a merger. Deloitte Touche Tohmatsu is one of the Big Four accounting companies, present in 140 countries with offices running. It is a network globally organized in partnerships that are country based independent and separate, offering consulting, audit, risk management and financial advisory services. It has a host of initiatives which have landed them on a number of top employer lists due to its hard working culture. A merger with Deloitte will mean new prospects because of the applicant-friendly multimedia they have in place, great exposure to the market as a result of the extensive region that it covers and great returns because of being the choice of many companies due to their nature of hard work. There is much security for the shareholders due to the good business relations Deloitte enjoys in the market. Bank financing would be most appropriate in facilitating the merger due to the asset base and size of the firm. There would be very high potential for growth due to respect the firm commands in the field of accounting.
Ernst and Young are an assemblage of firms around the world that number 140. It is one of the big four accounting firms that offer assurance, tax, advisory and transaction services. For progressive practices, Ernst and Young collects laurels such as its calm effectiveness program that enlightens employees to identify and reduce anxiety and tension. These programs attract seasoned recruits while adding to their appeal for recent graduates and students through their strong Facebook presence, and tempting initiative offers for the Samaritan accountant (Steinberge, 2010). It facilitates accounting services that are free to overseas small businesses through paying for its professionals. Merging with Ernst and Young would mean incorporation in a household name and exposure to programs that give services to the people, even assisting those who are disadvantaged in some way. Financial Banking, would best suit the effecting of such a merger because, it is a global company that commands a lot of respect in its field of operation with a global representation.
Great importance is placed in finding out the history of companies that would be considered for merger, so a...