Acquisitions Essay Example | Topics and Well Written Essays - 750 words

Acquisitions - Essay ExampleMultiple eruditeness can be simply defined as the act of acquiring and subsequently integrating several businesses over a period of time. The primary rivalry for this type of acquisition is that this method will help investors to build a unassailable market berth in a traditionally fragmented market. In addition to building a strong nationwide market position, this strategy may also attend foreign investors to develop a portfolio of topical anesthetic brands. Referring to Meyer & Tran, it is the most aggressive market entry strategy. Multiple acquisition policy would provide investors with increased flexibility as this method assists them to exercise greater control over local market. One of the notable demerits of the nine-fold acquisition is that a high initial investment is required under this type of acquisition strategy. In addition, integration of a number of independent businesses may raise operational difficulties because this process invo lves organizational change. Possibly, this acquisition strategy would end up in a huge loss unless the top management exhibits higher levels of skill and efficiency. The indirect acquisition is the process of acquiring an organization that locates outside the focal country with a subsidiary unit in the same emerging country. According to Meyer & Tran (2006), indirect acquisition strategy would assist investors to easily and quickly achieve market share, particularly if the acquired firm possesses strong globally and locally recognise brands.