Executive Performance Report

Summary

The objective of this report is to identify if an acquisition of a company in the European Union is beneficial or will lead to a loss in the market and eventually the downfall of the company after acquisition (Vogt, 2014). Entry into the European Union market means that the company involved will have a readily available market to conduct business.

Process

The process for acquisition of a company under the European market is in accordance with the European Union regulations (Bjarnason, 2010). The process will include making the takeover bid for the European Union Company, acquiring the majority percentage of the shares for that company, buying all the shares eventually after an agreement between the owners, and finally merging with the company immediately to start the business.

Findings

It is very expensive to acquire a company under the European Union since there are rules and regulations to follow which will ultimately see the growth of the company. Some of the rules include providing details about the annual turnovers after the acquisition in order to allow for the European Union to apply rules against the company as a requirement (Vogt, 2014).

Discussions

There are many advantages of being in the European Union market. Product prices are controlled by the European Union; therefore, there is no monopoly. Once the company enters the European Union, the market is one whole where one can sell the products without any hindrances (Bjarnason, 2010). The market is tax-free meaning that the company will not have to pay for the movement of goods and services in any country under the European Union. Challenges include the company will experience difficulties during its exit. The profit sharing is regulated by the European Union and this creates low profits for a business especially after an acquisition.

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Bjarnason, M. (2010). The political economy of joining the European Union: Iceland's position at the beginning of the 21st century. Amsterdam: Amsterdam University Press.

Vogt, R. (2014). European national identities: Elements, transitions, conflicts.