Merger of symantic & Veritac

Merger of symantic & Veritac

1. In my opinion the best best merging company at time wfor Symantec would be Vertitac as Symantec is an American computer software company founded on March 1, 1982. It is an international corporation that specializes in selling security and information management software, and is listed on the NASDAQ-100 stock market index and Fortune 1000 list of the largest American companies. Gary Hendrix founded the company in 1982 with the help of a National Science Foundation grant. Symantec was originally focused on artificial intelligence-related projects, and Hendrix hired several Stanford University natural language processing researchers as the company's first employees. After the company's initial public offering in 1989, Hendrix left the company in 1991 and moved to Texas. The company has acquired 57 companies, purchased stakes in 2 firms, and divested 26 companies, in which parts of the company are sold to another company. Of the companies that Symantec has acquired, 50 were based in the United States. Symantec has not released the financial details for most of these mergers and acquisitions.

It is often said that two heads are better than one. This is also true in business. By merging or through acquisitions, two organizations can group their resources to increase market share, beat a competitor, or create a more efficient business model. Joining forces does not happen overnight; it is process. Mergers and acquisitions are used to describe various corporate restructuring strategies. Mergers take place when two relatively equal sized companies mutually decide to pool their interests to become one jointed organization. Acquisitions occur when companies purchase another and eliminate the existence of the target as an independent entity.

The decision to merge with or acquire another company is, in principle, a capital budgeting decision. The value of a merger may depend on such things as strategic fits. Accounting, tax, and legal aspects of a merger can be complex.

2. Financing the Merger with Veritac

Accounting: Revenue Enhancement and Cost ReductionWhen two companies merge, synergistic benefits such as revenue enhancement, cost reduction, risk management, and greater market share can occur. Synergy takes the form of revenue enhancement and cost savings. Combined revenue tends to decline to the extent that the businesses overlap in the same market and some customers become alienated. For the merger to benefit shareholders there should be cost saving opportunities to offset the revenue decline.

Synergy can come in the form of staff reductions as the merger of two companies creates an overlap in some positions. A newly merged company would only have a need for one Controller, or one President of Sales and Marketing. Also, it would produce more products and reach more customers with a reduction in staff. The economy of scale also provides a synergy; this refers to the benefits of ordering in bulk provides as the size increase that goes along with mergers provides better power for the newer, large entity.

A merged organization may reduce costs by working more efficiently than the two smaller ...