Businesses in United States Assignment Example | Topics and Well Written Essays - 1250 words

Businesses in United States - concession ExampleMost mergers involve a bigger company absorbing a small enterprise, which has imprint market influence though mergers argon not always full buying of the firm it depends on the terms of agreement. Moreover, firms, which merge operate dependently, and decisions made are together. Concisely, mergers are not always done knocked out(p) of good heart, but some firms absorb rival enterprises to reduce competition. On the opposite hand, there are companies, which operate solely without depending on other firms for support. Most mergers are ill intended since the bigger firms aim acquisition as a way of extinguishing firms, which pose a threat to their customer base. Businesses go inter depicted objectly in order to get raw materials, as well as access a ready market. This is experienced in countries where the market is flooded, therefore international markets have cheap labor and quickly available raw materials. International corporation s enjoy protection from parent countries incase their operations are imperil by rival firms and government regulations in the foreign country. International mergers Chase bank is a national bank, which has branches both nationally and internationally. Chase bank first started as Chase National bank earlier it merged in xix thirty with Equitable Trust Company of New York and Interstate bank Company. During initial times, Chase National bank was a managed by JPMorgan Chase & Co. Subsequently in nineteen fifty five, depose of the Manhattan Company merged with Chase bank to form a giant corporation, which launch branches in more than sixty countries in the adult male. Chase bank is among top four banks operating in United States economy. All the shareholders and management of the two banks, however, universally accepted the merging. There was 50% management of the lineage since the two firms joined their names and formed Chase Manhattan bank, which became a prominent bank in the world (Gaughan 2005). Chase Manhattan coin bank, however, abandoned their logos and designed a invigorated logo octagon in shape representing pipes laid down by Manhattan Company. The logo was more of favoring previous activities of Manhattan than Chase bank. Reasons for merging Chase National Bank and Manhattan Bank merged so that they can increase their financial performance. Merging increases the capital available in the firm therefore, high sells revenue and net profit. Furthermore, acquisitions reduce costs spent by the banks in the operations. equal is a factor, which makes many firms experience loses. More so, bank mergers lead to increase in market size. geographic diversification is a factor, which guides many firms to merge. Chase National Bank was in New York while Bank of Manhattan is located in Manhattan, which is located in contrary states. Entities that start new in a different geographical area takes lots of time to get market acceptance therefore, to curb this, most firms borrow entities in the same geographical area and operates with them. Most enterprises use the companys names to moderate on risks and accrue long run profits. Riegle-Neale Act of 1 June (1997) allowed banks to expand geographically and acquire new markets throughout the United States and internationally. Stewarts merger motivation theory argues that enterprises merge to reduce on debt capacity, which other banks owe them. Businesses, which have high debts that they cannot settle, agree to mingle with a firm operating well to second in settling of the accumulated debts. As Chase bank merged with Manhattan bank, their capital base change magnitude as well as the lending capacity. This reduced dependency levels and businesses were self- reliant. Normally in businesses,