Strategic finance and accounting Essay Example | Topics and Well Written Essays - 250 words

Strategic finance and bill - Essay ExampleFor one reason, spinal fusions are undertaken so as to increase the growth rate of the physical composition. For this case, the prexys statement means that, through the merger, a stronger organization with a stronger financial base to have more and better assets and improve the care condition will be formed. In this light, with good management, when a new team of management personnel will be put in place, the chairman is utopian that the newly formed organization will be able to provide better services to the passengers at affordable prices as well as make better profits. Through the merger, thither is reduction in contender that was there before between the two firms, and this can make the shareholders now run a more profitable business. The staff will also enjoy since new management comes with new management systems so that, the former problems that were being experienced earlier, must be sorted before the merger takes place. For in stance, there has been a cabin crew dispute and strike in the airlines, which will be solved by the merger (TheGuardian, 2010).Therefore, the merger is compelling since it has several advantages, strategic in terms of tax benefits and reduction of competition and financial logic as it brings finances together for investing and improving the face of the new organization to result to better management, customer service and good profits.Considering a recent example of a merger between two cement companies Lafarge and Holcim, the two companies had an intention of coming together to create the worlds biggest cement maker with combined sales of 32 billion pounds. The merger was aimed also at decrease competition which has made the two firms become the biggest rivals in the