A corporation can grow internally by expanding its operations both globally and domestically, or it can grow externally through mergers, acquisitions and strategic alliances. A merger is a transaction involving two or more corporations in which stock is exchanged, but from which only one corporation survives. Mergers usually occur between firms of somewhat similar size and are usually "friendly." The resulting firm is likely to have a name derived from its composite firms. For example Sony Corporation and LM Ericsson have merged their mobile phone divisions in an effort to revitalize their struggling handset businesses. The new company "Sony Ericsson Mobile Communications" is a 50-50 partnership located in London, England, employing about 3,500 people worldwide. An acquisition is the purchase of a company that is completely absorbed as an operating subsidiary or division of the acquiring corporation. Examples are Procter & Gamble's acquisition of Richardson - Vicks, known for its Oil of Olay and Vidal Sassoon brands, and Noxell Corporation, known for Noxzema and Cover Girl. Acquisitions usually occur between firms of different sizes and can be either friendly or hostile. Hostile acquisitions are often called takeovers 1. .
The objective of this paper is to look at strategies for mergers and acquisitions and some recommendations to ensure the success of mergers and acquisitions. .
2. Research Methods.
One of the most frustrating things for business students is writing theses and research reports. We often have problems understanding the importance of theory and methodology in writing good business reports. In Cambodian context, this frustration is further enhanced due to the absence of a suitable text that we can use as a guide to methodology issues in our project work. Moreover, the limited knowledge of English language even makes the research more difficult. However, this paper is written with the research from textbooks from libraries and internet.
