Mergers and Acquisitions (AECOM) Essay Example | Topics and Well Written Essays - 1750 words

Mergers and Acquisitions (AECOM) - Essay ExampleThe achievement amidst the two firms created a lot of opportunities for the competitors in the securities industry to gain stability and thus direct even stronger competition in the market. Besides, the acquisition led to an increase in the offices prices of the company as strange to the reduction in its value as it was anticipated. Moreover, the acquisition was as a result of ACM struggling to adopt its selfish interest in the construction industry to ensure that it controls the whole market. It is evident that the primordial amaze of the acquisition was to eliminate other competitors from the market in order to create a free market for ACM Construction Company to dominate the market. This however did not succeed due to the poor strategies involved in the acquisition. To begin with, the Income statement of the company before the acquisition is better than after the acquisition. The company used to take away a lot of profits i n the past as observed by Depamphilis (2011).Since the acquisition between the two companies took place, Jacobs Construction Company has remained steady and continued to enjoy more customer base than before. in that respect has been a significant increase in the number of share of JCE traded with a stable price of $ 23.8 and an come of 240 shares being traded daily. The income statement also signifies a decrease in diluted average weighted share from 132.18 to 126.47 by the r March 2015. This is a good indicator that the company had gained economies of scale and thus financial growth due to the competitiveness created by the acquisition of the two firms according to Bruner, (2004).The operational synergy for JCE converged and travel together in the same direction after the acquisition of AECOM. This also signifies an improvement in functionality and caution of JCE as compared to the merged firm. Moreover, it means increased competition among the firms in the industry as opposed to the primary intention