Mergers and Acquisitions: What You Need to Know

The companies that will be utilized in the M&A paper operate in the US food processing industry. These two companies are Tyson Foods Inc. and Koch Foods. Both of these companies are in the Food Processing’s Top 100; hence, they would be the best match for the establishment of a high-performance M&A. Tyson Foods has great experience after being on the food processing market since the 1930s. As such, the company would be significant in providing a strong support base to Koch Foods, which has only been on the market for around 33 years (Koch Foods Inc., 2018). Koch Foods has a substantial market share, which would be essential in propelling the performance of their merger. Consequently, Tyson Foods has vast resources that would be relevant in ensuring that the merger operates efficiently on the market. It is estimated that Tyson Foods produces one in every five pounds of pork, chicken, and beef in the US. This portrays the muscle of the company in this industry. Besides, the company realized 38.3 billion dollars in sales for the financial period of 2017 (Tyson Foods Inc., 2018). These coupled with the over 122,000 employees would be significant in delivering a proactive merger that would offer various benefits to both companies. The main benefit of the merger would be the provision of enhanced market share given that these companies command a significant portion of the US food processing industry market (EconomyWatch, 2018). The merger will also improve research and development, which is essential in ascertaining the organizational performance. For instance, Tyson Foods invests heavily on R&D, and this will benefit the merger with Koch Foods, which does not have a strong R&D initiative. Lastly, the merger will also enhance employee productivity given the great number of employees from both companies. Subsequently, this will improve employee satisfaction, thus, reducing any internal challenges in the merger. 

References 

EconomyWatch. (2018). Benefits of mergers and acquisitions . Retrieved from http://www.economywatch.com/mergers-acquisitions/benefits.html 

Koch Foods Inc. (2018). About us . Retrieved from http://kochfoodsinc.com/our-company/about- us 

Tyson Foods Inc. (2018). Our story . Retrieved from https://www.tysonfoods.com/who-we- are/our-story