Merger and Acquisition: Proposed takeover by Primary Health Care of Symbion Health.

Essay by SantinaUniversity, Bachelor'sA+, May 2009

download word file, 14 pages 0.0

Executive Summary________________________________________________________________________The following report is prepared for Primary Health Care to assess the current proposed takeover of Symbion Health. Both companies occupy substantial positions within their own medical sectors.

This report analyses the tangible and intangible assets of the separate entities and highlights the positive synergies that will arise to complement and expand pre-existing services.

Empowered with the benefits of successful integration and increases in net economic value, the combined entity would be one to transverse and operate in the cross market boundaries of the previously separate entities.

Issues must also be considered in detail. The merger between such players in the market would entice external factors such as retaliatory responses, as well internal factors such as boundary expansion and integration implications.

Through an evaluative balance of benefits and implications, it is highly recommended that Primary Health Care should proceed in its takeover of Symbion Health, provided that Primary effectively deals with potential transactional issues.

With successful implementation, the takeover would prove to be a valuable strategy which would ascend Primary into one of Australia's dominant health care service providers.

RESOURCESThe proposed takeover is expected to create a leading Australian provider in the sectors of the health care industry. Through the examination of the resources of both entities and possible synergies, it is evident that Primary's strategy is to create a combined entity that has a net increase in economic value. Provided it is able to overcome the issues of successful integration, cultural synthesis and transactional costs via strategies such as incentive schemes and pricing strategies, the takeover would provide Primary with an array of competitive advantages in its established market environment.

TangiblesIn addition to Primary Health's pre-existing resources, the resulting entity would be able to utilize Symbion's vast range of tangibles assets derived from its four separate divisions. From...