Two Recent Merger and Acquisition Cases Essay Example | Topics and Well Written Essays - 500 words

Two Recent Merger and Acquisition Cases - Essay Example A merger occurs when two firms integrate their skills and acumen with each other to take advantage of business opportunities or sidestep threats. Sometimes the decision to merge can be to increase size due to legal e.g. capital requirements, or to acquire efficiencies, talents or market access in a totally different but complementary field of business endeavor. In an acquisition, however, one firm is bought outright by another for a price that may be made public or disclosed to only the stakeholders and the relevant Government authorities. It is clear that both firms should get something out of the corporate deal or the effects are not long lasting. Indeed it has been noticed that many participant workers and managers are found ruing the past when things were much simpler and better- however they are forced to deal with the situation ‘as is now’ and have put in too much effort to unwind the deal again. One acquisition that took place in the healthcare industry between Se ptember-October 2010 was that of ZymoGenetics, Inc. being bought by Bristol Myers Squibb (BMS) for US$885 Million. With this acquisition, BMS hoped that it would gain inroads into the fight against cancer, hepatitis C, and other diseases for which ZymoGenetics already had some research products in the pipeline.