Intermediate Financial Accounting

Rise and fall of ABC Learning

History of ABC Learning and its business strategy

ABC Learning led its foundation in the year 1988 in Ashgrove , Brisbane Queensland in Australia . The rapid expansion of ABC resulted in 43 childcare centers around the year 2001 to a whooping 697 centers in 2005 all over Australia and New Zealand . ABC Learning is subjected to child care and quality education hence its performance can be gazed from its rapid expansion in the country . The child care company acquired similar groups in the United States and United

Kingdom for its further global expansion and is aiming to provide child care services on a global scale . The business strategy of ABC is to achieve its objectives through global expansion but for that they had enormous dependency on debt which eventually led to its fall out due to the recent subprime mortgage crisis

ABC Learning acquired United States Learning Care Group Inc , Peppercorn Management Group , HYPERLINK "http /en .wikipedia .org /wiki /La_Petite_Academy " \o "La Petite Academy La Petite Academy of Chicago , UK based Busy Bees Group Ltd , etc , which resulted in its striking the chord with the major global child care operators and creating a global brand image for itself . The first and foremost reason for mergers and acquisitions is the firms ' desire to increase market power . In to expand the size of the firm , firms go in for horizontal , vertical and conglomerate mergers . If two firms operating and competing in the same business activity merge...