Strategies and investiment results in the merging and extinction of entreprizes

Abstract

Widespread competition leads enterprises to change in order to succeed. The previous analysis of investments very often reveals the necessity to reorganize. Thus the merging or extinction of organizations may be the way for survival and profits. This article starts with the assumption that it is important to analyse the operational and financial aspects of the organizations to be changed, verifying their necessities and their power to negotiate as well as the possible actions they ought to take in order to grow. Next the actual situation of some enterprises which merged or separated is presented, as well as the resulting advantages and disadvantages of their procedures. It is important to point out that the changes that happened in those enterprises were all different from each other probably due to the different approaches adopted by their administration boards. It is also pointed out that the analysis of possible indices before and after the reorganization may work as a guideline to the enterprises’ future investments. Finally it is acknowledged that reorganization may be the way for a better performance of enterprises.