Mergers Essay Example | Topics and Well Written Essays - 500 words

Mergers - Essay Example rgers are part of reforming a business which involve two companies coming together to create a big organization that pleases shareholders (Albizzatti and Sias 35-28). One factor that may make two companies succeed in merging is by integrating their data thus it will be easier to achieve the shareholders value. According to Gaughan (2009), this strategy is mostly used in tough economic times where those companies which cannot survive the competition in the market are bought-off by the strong companies in the market. Stanwick (16-11) descries that this enables the companies to improve their competitive nature as other companies merge hoping to increase their share in the market and thus will produce more than they would have if they were to operate by themselves. This study shows the possibilities that would make a company such as SLP want to merge with another one. It will also show how the mergers are financed and finally it shows the second and the third company to be chosen as a merger giving reasons for each. In my opinion if I was to pick a company to merge with between Dell and Intel it would be Dell. This is because it has more benefits to the company than Intel. Perry and Herd (19-12) shows that Dell is a multinational company and it already has a big market share all over the world which has been estimated to be 20 percent. This advantage would make SLP Company be in a position of venturing the global market as Dell would increase its industrial visibility. Dell is a company that deals with computers and SLP Company is involved in vehicles. Their merging type would be in the form of extending their product as the businesses are different but the products are somehow related. If Dell was to takeover SLP it would achieve more benefits of economies of scale as the size would increase as well as its product line. To pay for the deal the best way would be through fixed value stock. This is where the shares are fixed in that the buyer’s shareholders may run

Formation of a Legally Binding Business Contract Essay - 3

Formation of a Legally Binding Business Contract - Essay Example It is important to consider what constitutes a valid offer. There are various statements which seem like offers but actually not offer. A distinction must be among offer, invitation to offer, an invitation to treat. Jess advertised a second-hand van for sale on a car trade website for  £2650. This is not an offer but a mere invitation to offer. This means that if anyone shows interest in the van, Jess reserves the right of refusing to sell it. As seen in the given case, Mr. Powell showed interest in the van but Jess told him that she would sell it if any other customer came before him. The interest shown by Mr. Powell was the actual offer but it was not accepted by Jess. Jess agreed to sell the van to him but she qualified her acceptance by saying that she would sell the van to any customer that came before him. A qualified acceptance is not a valid acceptance which is why they did not have any agreement yet. Mr. Powell told Jess that he would pay  £450 in advance if she did not sell the van to any customer for three days. Normally, when general offers are made, the offeror is not bound to keep the offer open for any particular offeree. However, when an offeree agrees to pay a consideration for keeping the offer open for a certain period, the offeror becomes bound to keep it open for the stipulated period as seen in Dickinson v Dodds. Mr. Powell has obtained a promise with the consideration of  £450 from Jess that she would keep the offer to sell the van to Mr. Powell open for three days. Now Jess and Mr. Powell have an agreement that is separate from that of selling of the van. Another important fact is that Jess’ invitation to offer turned into an offer during this negotiation. It is because anyone could have made an offer to Jess before she promised to keep her offer open.