Acquisition of ACME: Challenges the Company Faced Essay

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ACME Company limited is faced with the challenge of choosing between the two probable companies to which it shall fully commit its resources and be assured of getting returns afterward. The acquisition of ACME by any of the two companies shall mean that its operations are lowered and it shall cease from continuing with its business. It’s a very technical issue to be partaken by the members of the board managing ACME and they have to ensure that no disappointments shall be realized. According to Helen, W. (2004) before the acquisition is finalized the parties involved have to analyze both companies on their working environments and the trend of performances. Considering these factors JEL industries is the most qualified partner to absorb ACME Company limited. The fact that is the company is located in the European Union which has a higher capacity of conducting business with minimal hindrances and threats. The business environment of the European-based industries is stable and more promising than for any other section of the globe. This is the fact that gives the JEL industries a competitive advantage over the opponent company that is not a member of the European Union. More so the Union does have agencies that can bail out any company that is qualified to be in operation under their specifications just in case it is brought down by debts or unprecedented calamities such as the Earthquakes (Helen, 2004).JEL being a member of the organization has a future that is more certain than the opposing partner and this is a very strong and supportive breakthrough. Companies in the European Union again do transact using the Euro which is one of the strongest currencies already in existence in the money market. According to Santos & Bardes. (2007) Euro at most times is used as a parameter through which the currencies of other nations are rated against to depict their performance.JEL company limited has the advantage of carrying out its transactions using the currency and as a result, it does enjoy the benefit of being more valuable than the other party and this makes it a more qualified company to acquire ACME.JEL company limited in addition do operate in an environment that does give the opportunity for it to showcase all of its unique products and outputs.

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The stability of the market segment in the European Union is more advantageous for the winning company over the other because it does promise continuous business for the company. Doing business in a European nation do have the implication of having to give the particular entrepreneurs the opportunities they have been searching for when they thought of the particular niches. The business environment in the European nations does have the right resources that do give implications of the means that would be right for the growth of the business. Implications are quite a rampart of the mechanisms to use in order to pull through the market with minimal drawbacks. The acquisition of ACME by JEL Company is advantageous in many perspectives. According to Shobhana, S. (2009).first of all, JEL Company has an already existing client base and this has the option of promising future business. Having contacts with the customers gives the company the chance to display their unique products that could not be availed to the particular market if the acquisition did not go through. More so, a combination of the two companies does also merge the customers’ base of both parties and this rises the customer count of the companies products hence leading to higher sales. The existence of the vendors in ht market does give the advantage of having to start its operation from day one. Despite having undertaken the acquisition of the Company, JEL has the chance of continuing with the sale of its products in the ACME market due to the existence of a ready network of the vendors fueling it. If it were not of this acquisition the penetration of the company products into the shared market would be costly. The availability of an already existing staff base does relieve the company fro conducting human resource training. The ACME company was already into business and its acquisition do not lead to lay off of the staff, instead the JEL company is relived the cost associated with the training of manpower. According to Okan, B., (1998) due to the acquisition of the company knowledge can be transferred from one person to the other concerning certain factor in the industry. This information would be used during lying out of the strategies that would set the company towards a very positive direction. Such could not have happened if the company was not acquired.

The availability of premises that were being used by the earlier company does relive the JEL Company the costs associated with having to look for premises to operate on. This is very cost effective for the company and its stronger lift towards the commencement of operations. According to Okan, B., (1998) as a result of taking over the company, problems of the human resources do arise. Some of them may opt to leave the business especially if they do not like the changes that would come into place. As result of the acquisition the company image would be destroyed and the remodeling of the same would be costly and times consuming yet the products are supposed to be in market and making sales

References

Helen, w. (2004). Creeping acquisitions versus an open offer. NY: Perennial.

Okan, B., (1998).Valuation of firm’s acquisitions. Greenwood Publishing Group.

Santos A, Waite A. C., & Bardes B. A. (2007). Mergers, Acquisitions & Alliances Massachusetts: Wadsworth Publishing Company.

Shobhana, S. (2009). Acquisition of Business Enterprise. Texas: Wadsworth Publishing.

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IvyPanda. 2022. "Acquisition of ACME: Challenges the Company Faced." March 10, 2022. https://ivypanda.com/essays/acquisition-of-acme-challenges-the-company-faced/.

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IvyPanda. "Acquisition of ACME: Challenges the Company Faced." March 10, 2022. https://ivypanda.com/essays/acquisition-of-acme-challenges-the-company-faced/.

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