碰剥将多大是 高级商务英语阅读 system,a bigger company placing the orders can save more on costs.Mergers also translate into bigger purchasing power to buy equipment or office supplies-when placing larger orders, companies have a better position to negotiate price with their suppliers. Acquiring new technology-To stay competitive,companies need to stay on top of technological developments and their business applications.By buying a smaller company with unique technologies,a large company can keep or develop a competitive edge. Improved market reach and industry visibility-Companies buy companies to increase markets and grow revenues and earnings.A merge may expand two companies'marketing and distribution, giving them new sales opportunities.A merger can also improve a company's standing in the investment community:bigger firms often have an easier time raising capital than smaller ones That said,achieving synergy is easier said than done--it is not automatically realized once two companies merge.Sure,there ought to be economies of scale when two businesses are combined, but sometimes it works in reverse.In many cases,one and one add up to less than two. Sadly,synergy opportunities may exist only in the minds of the corporate leaders and the dealmakers.Where there is no value to be created,the CEO and investment bankers--who have much to gain from a successful M&A deal--will try to build up the image of enhanced value(usually by means of aggressive accounting).The market,however,eventually sees through this and penalizes the company by assigning it a discounted share price. Why M&A Can Fail It's no secret that plenty of mergers don't work.Those who advocate mergers will argue that the merger will cut costs or boost revenues by more than enough to justify the price premium.It can sound so simple:just combine computer systems,merge a few departments,use sheer size to force down the price of supplies,and the merged giant should be more profitable than its parts.In theory,1+1=3 sounds great,but in practice,things can go awry. Historical trends show that roughly two thirds of big mergers will disappoint on their own terms, which means they will lose value on the stock market.Motivations behind mergers can be flawed 第4页共11页高级商务英语阅读 system, a bigger company placing the orders can save more on costs. Mergers also translate into bigger purchasing power to buy equipment or office supplies--when placing larger orders, companies have a better position to negotiate price with their suppliers. Acquiring new technology - To stay competitive, companies need to stay on top of technological developments and their business applications. By buying a smaller company with unique technologies, a large company can keep or develop a competitive edge. Improved market reach and industry visibility - Companies buy companies to increase markets and grow revenues and earnings. A merge may expand two companies' marketing and distribution, giving them new sales opportunities. A merger can also improve a company's standing in the investment community: bigger firms often have an easier time raising capital than smaller ones. That said, achieving synergy is easier said than done--it is not automatically realized once two companies merge. Sure, there ought to be economies of scale when two businesses are combined, but sometimes it works in reverse. In many cases, one and one add up to less than two. Sadly, synergy opportunities may exist only in the minds of the corporate leaders and the dealmakers. Where there is no value to be created, the CEO and investment bankers--who have much to gain from a successful M&A deal--will try to build up the image of enhanced value (usually by means of aggressive accounting). The market, however, eventually sees through this and penalizes the company by assigning it a discounted share price. Why M&A Can Fail It's no secret that plenty of mergers don't work. Those who advocate mergers will argue that the merger will cut costs or boost revenues by more than enough to justify the price premium. It can sound so simple: just combine computer systems, merge a few departments, use sheer size to force down the price of supplies, and the merged giant should be more profitable than its parts. In theory, 1+1 = 3 sounds great, but in practice, things can go awry. Historical trends show that roughly two thirds of big mergers will disappoint on their own terms, which means they will lose value on the stock market. Motivations behind mergers can be flawed 第 4 页 共 11 页