Merger and Acquisition Scenarios: Barnes & Noble, Inc. Essay

Introduction

The merging and acquisition practices, which are generally practiced in business are regarded to be the inevitable processes of the development of companies, and the matters of improving the business performance, as merges of the companies, often cause changes in the stock market rates, thus, making the other companies analyze and assess the market situation. Moreover, it is an encouragement factor for the others, who wish to avoid the fall of their market shares and depreciation of their shares on the stock market. This paper aims to analyze the possible Barnes & Noble Inc merging or acquisition matters, as the valuations and variations of the stock market shares of this company appeared to be rather interesting.

Discussion

The possible scenario of merging or acquisition, associated with the variations of the stock market exchange, may be regarded in the context of the related feature of the multi-proof database. Originally, it entails the analysis of the company’s income rate (including the snapshot of the stock market rates), and is generally analyzed from the perspective of the proof history, which defines all the economic aspects of the company’s activity.

In accordance with the generally accepted scenario, once the multi-proof database is implemented into the business practice, the merge process starts. Thus, in accordance with the possible scenario, the steady merge looks the following:

1. Merging of the model.
2. Creating of the new proof history, on the basis of the principles of analyzing the merging factors, associated with union proof history.
3. Creating new proof-history from the very beginning.

Originally, these steps do not require the interaction of the entrepreneurs, who participate in the merging of the companies, thus, the person, who performs the merge will be able to review all the necessary data on the matters of the merge and the issues of the proof history.

The initial negotiations on the matters of merging and the perspectives of acquisition scenario may be associated with the necessities to discuss the profitability of the organization. Considering the fact that Barnes & Noble rose $3.29 to $21.29 at 5:05 p.m., after the close of regular trading on the New York Stock Exchange, there is a strong necessity to discuss the matters of the merging plan. Originally, Barnes & Noble adopted the proper plan, which was aimed at performing the merging process in about three years. This plan gives the shareholders the right to buy shares of a new series of preferred stock if an investor increases its stake to more than 20 percent of Barnes & Noble’s common stock. It also would take effect if an investor holding more than 20 percent buys more shares without board approval. In the light of this fact, the adequacy and enforcement of the company’s corporate governance policies should be regarded as the main ruling force of the merging process, thus, pointing out the necessity to perform the merging and acquisition scenarios taking into consideration the matters of the adequacy of the merging management.

Conclusion

Finally, there is a strong necessity to emphasize that the merging practices may be regarded similar to the acquisition and cooperation, nevertheless, with deeper consequences. These practices are associated with the matters of creating a proper scenario and providing the proper data of the company’s business performance.