by Kailee Harrison
Mr. Andrew Marmer was a guest speaker on February 24th in Mr. Jay Marmers’ MGT 347 International Human Resources Management class. Mr. Marmer joined a Stevenson BlueJeans meeting to speak about mergers and acquisitions, and joint ventures and alliances based on his experience in the career field.
Mr. Marmer started his discussion with the class by explaining why businesses and companies participate in mergers and acquisitions, and joint ventures and alliances. He says that the reason why companies engage in these activities is quite simple, they think that they can make more money. He elaborates that “if someone is to engage in these activities they do so for the potential benefit of the company”. Aside from financial benefits, Marmer elaborates that these activities can relate to a business’ need to access new markets as well.
Mr. Marmer highlighted the differences between the two types of entities, a strategic or financial buyer. He states that financial buyers are usually companies with a lot of money and have a “why not let’s go buy a company” mentality. Strategic buyers, Mr. Marmer continues, generally have a relationship with the industry or company. He sums up this discussion topic by stating that these activities are “not a one size fits all approach, there’s a number of different elements that are under this general umbrella and there are different reasons why companies make certain investments and purchases”.