TakeoverThe takeover usually happens when the one firm is stronger than the other. The firm use to go for takeover in order to win the specific market the firm wants to deal. This is the reason hat usually on region firm is to takeover the other region firm. This is the one simple and common reason, but usually the reason behind one takeover are many more. The assignment deals with the takeover of Republic Airways that is situated in United States and is listed in the NASDAQ. The assignment elaborates a complete pattern of takeover strategy and financial decision showing that either the takeover decision is right or not.
Before explaining the takeover strategy, comprehensive reasons fort he takeover is given below. Mutual goals and objectivesThe goals and objectives of the two firms were same and this was the major reason or key success factor allowing the takeover. The goals of the Republic Airways were to diversify their services but weren’t gaining any opportunity while the firm holds different expertise and specialist. On the other hand, the buying firm wants to gain the expertise and many resources from the Republic Airways.
The motives and objectives of the firms were same as to diversify their operations. Moreover, they want to enhance the tourism field at international level. Therefore, when they firms seek mutual objectives and goals, they find that this takeover will be very beneficiary for the firm in its future. Therefore, the mutual goals and objectives play major roles and are the key success factors compel for the takeover. Access to New technology and resourcesThe other major key factor that play important role in the success of their takeover is the access to the new technology and resources that enables the firm to provide much more satisfactory services to the consumers.
Actually the buying firm seek that it lack in technology as with the use of much more enhanced resources and technologies it will be able to provide quality services at acceptable rates. The research & development department of the buying firm were unable to provide much more augmented information at alone. Therefore, they decided that for the better future and better results they two firms should use their resources, expertise and capital to gain what they are unable to gain when single.
Improve agilityIn airline industry, agility is required in each step as the firms should be more responsive and dexterity when working at international level to compete with other firms. Therefore, the buying firm wants to become more agile and responsive in the international market to gain much more benefits. When talking to the manager of Republic Airways, he replied that the major important improvement the firm will gain is the improvement in agility.
Researcher’s shows that as the technology advances with time, the air line industry requires much more technologies and techniques not to improve the services rather they need to cut-off their internal cost to achieve maximum quality at minimum price level. Moreover, the quickness is required in the air line industry at international level as this will make them stronger competitor. Quickness in term of more responsive and agile for the customer needs.