Mergers and Acquirsition

Description

Mind Map on Mergers and Acquirsition, created by Xiphicy Flicker on 06/04/2014.
Xiphicy Flicker
Mind Map by Xiphicy Flicker, updated more than 1 year ago
Xiphicy Flicker
Created by Xiphicy Flicker over 12 years ago
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Resource summary

Mergers and Acquirsition
  1. Corporate strategy
    1. Objection: Value creation
      1. Increase revenue Cost savings Risk management
        1. Current and future strategic position or opportunities
          1. Financial, regulatory and taxation consideration
          2. Organic or inorganic growth
          3. Synergies
            1. Valuation
              1. Negotiation strategy
                1. Deal structure & form of payment
                  1. Implementation
                    1. Evaluation
                      1. Def.
                        1. Mergers

                          Annotations:

                          • Mergers are those forms of business transactions where there is a combination of two or more companies, and in the process one or more such companies lose their corporate existence because they merge with the surviving entity.
                          1. Acquirsition

                            Annotations:

                            • Acquisitions are those forms of business transactions where the shares or control of a company is taken over by persons who, prior to the change in shareholding or control, did not possess such shareholding or control.
                          2. Type
                            1. Horizontal vs Vertical
                              1. Firms in the same industry
                                1. Different steps of the production process
                                2. Conglomerate
                                  1. Firms not related in industry or in a supply chain
                                  2. Others
                                    1. Cross-border acquisitions
                                      1. Blurred mergers
                                        1. Financial acquisitions
                                      2. Strategy
                                        1. Industry
                                          1. Market
                                            1. Product/service
                                              1. Resource allocation
                                              2. Factor
                                                1. anti-trust regulation
                                                  1. changes in tax and pension regulations
                                                    1. privatisation programmes
                                                      1. globalisation
                                                        1. Shareholder activism
                                                          1. Deregulation of financial market
                                                          2. Perspective
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