August 15 - Office Work ( 6 hours)

This day focused on describing the reasons behind merger and acquisitions. During this day I analyzed many aspects. Merger and acquisitions have always represented an important strategic decision for big companies that are usually led to merge or acquire a new company by financial and economic reasons. The main reason behind a merge is the creation of value for the shareholders, creating synergy in terms of costs and revenues, increasing the wealth of the shareholders. A second reason is to diversify the business activity and, as a consequence, the business risks, acquiring new assets and know-how that can allow the company to increase in terms of economic and financial results, as well as from a brand perspective. Lastly, there is a tax purpose behind merger and acquisition. In fact, the tax liability would be lower after a merger than for an individual firm. Despite these points just described represent a big part of the decision process before a merge, in the last years there has been a new component that was leading investors to invest money in a determined company: the behavioral economy/finance. The behavioral economy plays a big role in many internal and external decision of a company, as well as it can influences the desire of a potential investor to become a shareholder of the company. This phenomenon can be highlighted particularly in the sport and entertainment industry. This aspect of investments, merges and acquisitions is extremely intriguing and shows a new trend that is helping to form the “sport wave”.