Financial management;Mergers and Acquisition Assignment

Financial managementMergers and Acquisition - Assignment ExampleThe major(ip) reason for citizenship change was to reduce the appraise base as it reduced to 26% when both companies piddle. Canada unremarkably has a lower tax rate compared to the United States. This move was marred with controversy as legion(predicate) claimed that was tax inversion and it even attracted the attention of president Obama as it was viewed the countrys economy would suffer. everywhere and above there was no illegality in the relocation hence the company would whoop it up lower tax rates ultimately improved the companys profitability (Shabi, 2012). One of the synergy to be enjoyed by burger king includes revenue synergy. One of the revenue synergy to gain from would be an increase in its grocery share as by acquiring TimHorton the company also acquired its customers. The company would easy penetrate the Canadian market as TimHorton controlled a large stake of the Canadian market. The acquisition w ould result to a combined 18000 restaurants in over 100 countries with total sales amounting to $ 23 billion. Based on burger king would be listed on both the New York stock exchange and Canadian stock exchange. Burger king would also enjoy distribution channels used by TimHorton. Companies buy companies to reach new markets and grow revenues and earnings. A coalesce may expand two companies marketing and distribution, giving them new sales opportunities. A merger erect also improve a companys standing in the investment community bigger firms often concord an easier time raising capital than smaller ones.Burger king would enjoy cost drop-off synergies, which include change magnitude economies of scale. The bigger the company the better the purchasing power as size matters. The increase of size would function to increase in goods sourced from suppliers. Greater quantities would result to increase in discounts offered. This would result in cost reduction and hence increase the o rganisation productivity. Due to acquisition, there would be reduction of staff, as some would have to lay off to cut