Systems assessment in acquired subsidiaries
Article Abstract:
UK firms undergoing mergers and acquisitions must consider the information technology (IT) systems that will be acquired with the new firm. The impact of IT on the acquisition must be considered, preferably before the finalization of the deal, in six areas: strategy, software applications, computer hardware, data processing staff, the status of software development projects, and the relationship of IT users. If the other firm uses different hardware, the issue of IT compatibility is only important if there is a need for integration between the two IT systems. Other issues to be considered when assessing systems in acquired firms are whether accounting systems meet UK accounting requirements, whether there are restrictions on accounting functions and records that will be affected by a systems integration, and whether a systems integration will be affected by the UK Data Protection Act.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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From competitor to European insider
Article Abstract:
Japanese computer manufacturer Fujitsu's 742 million pounds sterling acquisition of UK computer manufacturer ICL made the firm the second largest computer manufacturer in the world after IBM, and has given the firm a strong position in Europe and a foothold in the Single European market. The acquisition is illustrative of an increase in Japanese acquisitions in the UK, including Mitsubishi Electric's takeover of Apricot Computers' hardware division. The UK under the government of Margaret Thatcher has encouraged Japanese investment in the UK. The irony of the acquisition is that ICL is a member of the two European computer R&D consortia, Esprit and Eureka, which were implemented to counter the threat to indigenous European high technology firms by Japanese companies.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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The dangerous trend to high leverage
Article Abstract:
British companies are joining in the fray of corporate takeover mania with the recent case of Bond Corporation Holdings Ltd's attempt to acquire Lonhro PLC. Currently the Bank of England is maintaining a low profile. Banks often underestimate the long term effects which the acquired debts will have on the operations of a company, and the costs it must endure in waging a defense against potential suitors. Banks like to regard leveraged buyout projects as safe because they can be scrutinized, which is a direct result of banks' recent setbacks in third world debts.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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