Mergers and Acquirsition

Mergers and Acquirsition

1. Corporate strategy

   • Objection: Value creation
     • Increase revenue Cost savings Risk management
     • Current and future strategic position or opportunities
     • Financial, regulatory and taxation consideration
   • Organic or inorganic growth

2. Synergies

3. Valuation

4. Negotiation strategy

5. Deal structure & form of payment

6. Implementation

7. Evaluation

8. Def.

   • Mergers
     • 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.
   • Acquirsition
     • 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.

9. Type

   • Horizontal vs Vertical
     • Firms in the same industry
     • Different steps of the production process
   • Conglomerate
     • Firms not related in industry or in a supply chain
   • Others
     • Cross-border acquisitions
     • Blurred mergers
     • Financial acquisitions

10. Strategy

    • Industry
    • Market
    • Product/service
    • Resource allocation

11. Factor

    • anti-trust regulation
    • changes in tax and pension regulations
    • privatisation programmes
    • globalisation
    • Shareholder activism
    • Deregulation of financial market

12. Perspective