Stanley Black And Decker Ma Analysis Merger Finance Essay This essay has been written by a regular student and is *not* an example of our own work. If you would like your own custom essay written just for you by one of our professionals then click here to learn more. This paper seeks to conduct an M&A analysis of the merger between The Black & Decker Corporation and Stanley Works. It also seeks to provide details of the announcement and various reactions it elicited in the corporate market. The paper conducts a thorough research on available data on the companies and uses it to conduct the M&A analysis to show the possible projected reactions in the market due to the merger. It also looks at the actual current data after the merger and compares the two. The paper concludes that the shareholders of Black and Decker Corporations got a good deal from the acquisition of the company while also the shareholders of Stanley Works experienced increased market capitalization and has had increased share value and dividend earnings. The paper adds knowledge to the already existing body of knowledge. Introduction
A merger is the joining up of two or more firms into a single entity. Most companies usually use this strategy in order to increase the competitiveness of the two companies by increasing market share and enjoying economies of scale. Others merge in order to enjoy increased financial synergistic benefits (McDonald, Coulthard and De Lange, 2006). As the world economy is recovering from the 2008 recession, there is increased demand for provision of goods and services. Most companies try to fulfill this demand through various strategies of growing the companies further. Some of those companies do this through mergers and acquisitions. In the past months a merger between The Black & Decker Corporation and Stanley Works has graced most of the corporate circles. Black & Decker was acquired by the Stanley Works for $ 4.5 billion (Walker, 2011) and the merger completed in...
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