B) Mergers and Acquisitions

Profitable growth constitutes one of... prime objectives of most of the business firms. It can be achieved "internally", either through... process of introducing or developing... new products, as well as by expanding the capacity of existing products... firm is engaged in. Alternatively, growth process can be facilitated "externally", by acquisitions of... existing business firms. This acquisition is technically referred to as mergers, acquisitions, amalgamations, takeovers, absorptions, consolidations, etc. Although... legal procedures involved in these terms are different, these terms are often used interchangeably. It is... finance manager's job to say "how large an enterprise should be, how fast it should grow, and how it should grow".

If... enterprise grows "internally" it can retain control with itself during expansion and it will be free to choose how to grow. However,... internal expansion usually involves... longer implementation period as well as different problems connected with raising... necessary funds. Mergers or acquisitions, in most cases, help to avoid... financial problems and expedite... pace of growth, by saving the time otherwise required in building up new facilities from scratch in the case of internal expansion programme.

Mergers are typically classified into... horizontal mergers (when two or more corporate firms dealing in... similar lines of activity combine together) and vertical mergers, extending to... suppliers of raw materials or distributors. The finance manager's job is to evaluate such merger decisions.

Words you may need:

takeover n слияние компаний

expedite v ускорять

pace n темп(ы)

from scratch с нуля

Ex. 9. a) Supply the prepositions where necessary.