and
business
ombination
Acquisitions
Mergers
and
Acquisitions
Mergers
business
Amalgamation
Acquisitions
ombination
Takeovers
Mergers
and
Acquisitions
Mergers
and
Acquisitions
Merging Companies
are called
Amalgamating
Companies
Merger
New Company is
called
Amalgamated
Company
Mergers
and
Acquisitions
Merger
Through
Absorption
Merger
MERGER
THROUGH
CONSOLIDATION
Mergers
and
Acquisitions
Merger
Through
Absorption
Merger
An Absorption is Combination of
two or more companies into an
existing company
All companies except one lose
their identity
Mergers
Western Union
Bank Merged
With
IDBI
and
New Bank Of
India Merged
With PNB
Acquisitions
Bank Of New
York Merged
With Mellon
Financial
Mergers
and
Acquisitions
Merger
Through
Consolidation
Merger
Mergers
and
Acquisitions
Merger
Through
Consolidation
Merger
Hindustan
Computers Ltd
Indian
Reprographic
Ltd
Hindustan
Instruments
Ltd
Indian Software
Co .Ltd
HCL LTD
Mergers
and
Acquisitions
Types of Merger
Statutory merger is a merger where the
acquiring company assumes the assets
and the liabilities of the merged companies
A subsidiary merger is a merger of two
companies where the target company
becomes a subsidiary or part of a
subsidiary of the parent company
Mergers
and
Acquisitions
Acquisition
An Acquisition may be an act of acquiring
effective control by one company over assets
or management of another company without
any combination of companies..
Companies may remain independent, separate
But there may be change in control of
Companies..
Mergers
and
Acquisitions
Acquisition
Obtaining Control over management of a Company
MRTP ACT-at least 25% voting right of a Company
Investment of more than 10% share into a company
Require approval of Shareholders & C Govt.
Mergers
and
Acquisitions
Mergers
and
Acquisitions
Mergers
and
Acquisitions
Tactics to Defend
Acquisitions
Mergers
andTakeover..Merger
Divestiture
Crown Jewels
Poison Pill
Greenmail
White Knight
Golden parachutes
Mergers
and
Acquisitions
FORMS OF MERGER
Horizontal
Merger
Vertical
Merger
Conglomerate
Merger
Mergers
and
Acquisitions
Mergers
Merger
Objectives
and
Acquisitions
Faster Growth
Improving Profitability
Managerial Effectiveness
Gaining Market Power
Leadership
Cost Reduction
Mergers
and
Acquisitions
Mergers
Merger
Alternatives
and
Acquisitions
Joint Venture
Strategic Alliance
Eliminating Inefficient
Operations
Productivity Improvement
Hiring Capable
Managers
Mergers
MERGERS
and
Acquisitions
Limit Competition
Market Power
Diversification
Growth
Economy of Scale
Access to Foreign Market
Resources
Displace existing Management
Circumvent Govt Regulations
Aggressiveness
Diversifying Risk
Profitability
Mergers
and
Acquisitions
Accelerated Growth
MERGERS
Mergers
and
Acquisitions
MERGERS
Mergers
and
Acquisitions
Financial Benefits
Eliminating Financial Constraints
MERGERS
Mergers
and
Acquisitions
MERGERS
Bargaining Power
Technological Advancement
Pricing
Limiting Competition
Mergers
and
Acquisitions
Planning
Search &
Screening
Financial
Evaluation
Mode of
Merger
Steps in
Analysis
Of
Mergers
&
Acquisitions
Negotiation
Post
Merger
Mergers
Steps in
Analysis
Of
Mergers
&
Acquisitions
and
Planning
Acquisitions
Objective of Acquisitions
Strengths & Weaknesses
Business Units-dropped
or Added
Industry Data
Target Firm
Market Growth
Competition
Ease Of Entry
Capital & Labour
Degree of Regulation
Quality Of Mgt
Market Share Size
Capital Structure
Profitability
Production &Marketing
Capabilities etc
Mergers
and
Acquisitions
Search &
Screening
Steps in
Analysis
Of
Mergers
&
Acquisitions
Mergers
and
Acquisitions
Financial
Evaluation
Steps in
Analysis
Of
Mergers
&
Acquisitions
Determining
Earnings
Cash flows
Areas Of Risk
Maximum Price Payable
How to Finance Merger
Current
Market
Value
Premium
Value
Mergers
Mode of
Merger
Steps in
Analysis
Of
Mergers
&
Acquisitions
Regulations
Time frame
Resources
Degree of control
Assume hidden
liabilities
and
Acquisitions
Mergers
and
Acquisitions
Negotiation
Steps in
Analysis
Of
Mergers
&
Acquisitions
Mergers
and
Acquisitions
Post
Merger
Steps in
Analysis
Of
Mergers
&
Acquisitions
Check Hostility
Anticipate Problems
Solve Problems
Treat people
With Dignity
Mergers
and
Acquisitions
Value Created
by Merger
Mergers
and Acquisitions
Economic Advantage
EA = VPQ - (VP + VQ)
Mergers
and
Acquisitions
CASE STUDY
HP COMPAQ
Merger
Mergers
and
Acquisitions
Mergers
and
Acquisitions
Mergers
and
Acquisitions
Mergers
and
Acquisitions