Consolidation Factors

Consolidation Factors

The element of corporate combination which have been identified as likely contributors to a net increase in market value may be categorized as either

"Operating" or "finacial”.

On the operating list would be counted the following:

1) Opportunities for economics of sales or other direct effciences in manfactring:

2) the enchanmcent of competivitate sales positions through augmented monopoly power or the appeal of more

complete product line:

3) a complementarrity in research and basic technological expertise relating to new products:

4)A convenient fit of scarce managerial skill leading to greater administartive effiency.

It seems unarguable that if indeed one or more of these conditions is present in the joining of two enterpries ,

the aggregate profitability of the two will rise ,as should the consequent market value of teh surviving firm.

on the other hand,there has been considerable skepticism expreseed in the literature as to the frequency with

which such benifits are accesible in practice.

1)Random Server Proliferation

2) Physical co-location of system

(Server and Sotrage)

3) Storage consolidation

"Legacy" consolidation of smaller applications

4) Like-workload Consolidation

5) Last and Bravest choice

Mixed workload consolidation

A financial statement which covers a holding company and its subsidiaries is called consolidated Finacial statement.

4.1Background on market power

4.2. Static market power analyses – effects of market concentration on prices and profits

4.3. Dynamic market power analyses – effects of M&As on prices and profits

4.4. The external market power effect

This study examined coping strategies and situational stressors as predictors of employee distress and turnover following an organizational consolidation. Six coping strategies were used: action planning, positive reinterpretation, acceptance, seeking emotional social support, intention to quit, and using alcohol or drugs. Two stressors, the extent to which a unit was affected by the consolidation and consolidation-related stress, were used. Two indicators of distress, mental distress and somatic complaints, were measured at three time periods: three months prior to, shortly after, and six months after the consolidation. The coping strategies were assessed three months prior to and in response to the consolidation. Findings indicated that intention ro quit and consolidation stress predicted mental distress while positive reinterpretation, use of alcohol or drugs and lower unit impact predicted somatic complaints shortly after the consolidation. Six months later, the main predictor of mental distress and somatic complaints was use of alcohol and drugs Turnover best predicted by a pre-consolidation indicator of intent to quit and a post-consolidation indicator of lack of acceptance of the consolidation.

Ensure data integrity. Financial Consolidation allows you to decrease cycle time and improve accuracy by automating the loading, consolidation, and validation of data from multiple organizational units. It also determines the most efficient consolidation paths for you. Because the data and changes are consolidated in a central, secure database, you instantly arrive at a single version of the truth not easily attained using spreadsheets. The application also features built-in calculations for the accurate handling of currency conversions, group ownership, and variances.

Support compliance. Using Financial Consolidation's journal entry capabilities, you can adjust data for consolidation issues, regulatory reporting, and management requirements. The application automatically handles exchange gains and losses, and eliminates consolidation adjustments such as minority interests, joint ventures, intercompany eliminations, and allocations. It also allows you to control the percentage of subsidiaries and associate enterprises that are rolled up, and the rate at which it happens. Financial Consolidation provides a complete audit trail on all consolidation adjustments, allowing you to review changes and providing the transparency needed to satisfy internal and external auditors.

Bringing speed, accuracy, agility, transparency, and insight to the process, BPC Financial Consolidation simplifies the tasks associated with consolidation so finance leaders can spend more time analyzing results and guiding the business—leading to greater return on investment and low total cost of ownership.