Merger of HSBC and Oman international bank Essay

Merger of HSBC and Oman international bank - Essay ExampleUsing secondary research and numeric analysis, this research aimed at testing how the hypothesis that mergers incurring high leverage levels succeed under regular markets. The study results show that mergers incurring high leverage levels also incur higher financial risks. present-day(a) job models face miscellaneous challenges among them competitiveness of rivals and economic landscape. The unpredictability of the economic environment has pushed companies to take various measures among them mergers and acquisitions. Since this research is focused on mergers, it considers mergers as the collaboration of two mature business enterprise entities.Mergers have disparate meanings to different entities. To the most important stakeholders, the parent companies, use mergers are partnering to explore a common business interest. On the other hand, mergers mean the teamwork between businesses with a common business goal. The differe nce between business goals and business interests is that the former indicates the plan of a business and how it plans on meeting various financial and running(a) goals. On the other hand, business interests accept common ambitions as well as shared mass of taking opportunities head on. However, business interest take on the assumption that the market has a falling out that the merging companies have to collaborate to ensure success is achieved in the most financially and economically in effect(p) manner possible.Five types of merges are identified within the business environment. Among these includes the horizontal, product extension, market extension, vertical, and conglomeration. Horizontal mergers involve two companies which are in direct competition with each other. The motive of this type of merger is to edit down on competition and maximize on factors that can improve the economic footing of some(prenominal) companies. Vertical mergers include a customer and company.