Complete 7 page APA formatted essay: Mergers and Acquisitions Office Max Office Depot.
This research will begin with the statement that the term merger involves the combination of two companies, which work together for an achievement of one common goal. Basically, the merger is between the same industry as the objectives of the two companies are the same. Although there will be a difference of approaches and methods following by each of them, the result achieved will be industry oriented. Moving towards the acquisition, it is a term defining when a company buys the assets or equities of another and leaving the liabilities. In acquisition, the financial terms are led by both of the companies while in the merger, financed is one company oriented. Both merger and acquisition can take place between public trading companies or private trading companies, involving the access of shares to public and shares which are not registered. Acquiring or merger with a firm requires the high level of negotiations to balance and mutual understanding of the objectives. The study of the merger of Exxon-Mobil is a merger of giant companies in the oil industry and this has been aimed to enhance the productivity of the two companies. The rate of a merger was high in the US in between 1994 to 2004, which was due to some major factors that are involved in the economy of the company and industry. The basic circumstances of the merger activity include the increasing number of merger particularly because of advancement in technologies, globalization of markets, intense nature of forms and sources to make industries deregulate, dynamic change in financial markets. Following these global trends of mergers, there some industry related trends as well. The oil industry of US is a large sized market and thus, it incorporates many challenges. Two major challenges of this industry are the addition of the future reserves within the country and the price fluctuations in the price of oil. The advantage of a large firm was firstly owned by only a few firms and is now one of the barriers to entry to the industry.