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    Read The Text and Match The Titles To The Paragraphs

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    Leo Tú Nguyễn
    This document provides a summary of a unit on mergers and acquisitions. It includes 1) an understanding of key points about disadvantages of takeovers, asset stripping, raids and bids, the make-or-buy decision, and the role of banks; 2) exercises analyzing details of mergers including reasons for failure, views on why mergers fail, motivations for mergers, and consequences of culture clashes; and 3) a vocabulary exercise identifying marriage-related metaphors used to describe mergers and combining words to form collocations related to mergers.

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    Read The Text and Match The Titles To The Paragraphs

    Uploaded by

    Leo Tú Nguyễn
    216 views3 pages
    This document provides a summary of a unit on mergers and acquisitions. It includes 1) an understanding of key points about disadvantages of takeovers, asset stripping, raids and bids, the make-or-buy decision, and the role of banks; 2) exercises analyzing details of mergers including reasons for failure, views on why mergers fail, motivations for mergers, and consequences of culture clashes; and 3) a vocabulary exercise identifying marriage-related metaphors used to describe mergers and combining words to form collocations related to mergers.

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    UNIT 9

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    This document provides a summary of a unit on mergers and acquisitions. It includes 1) an understanding of key points about disadvantages of takeovers, asset stripping, raids and bids, the make-or-buy decision, and the role of banks; 2) exercises analyzing details of mergers including reasons for failure, views on why mergers fail, motivations for mergers, and consequences of culture clashes; and 3) a vocabulary exercise identifying marriage-related metaphors used to describe mergers and combining words to form collocations related to mergers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    216 views3 pages

    Read The Text and Match The Titles To The Paragraphs

    Uploaded by

    Leo Tú Nguyễn
    This document provides a summary of a unit on mergers and acquisitions. It includes 1) an understanding of key points about disadvantages of takeovers, asset stripping, raids and bids, the make-or-buy decision, and the role of banks; 2) exercises analyzing details of mergers including reasons for failure, views on why mergers fail, motivations for mergers, and consequences of culture clashes; and 3) a vocabulary exercise identifying marriage-related metaphors used to describe mergers and combining words to form collocations related to mergers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    UNIT 9: MERGERS AND ACQUISITIONS

    I. Reading
    1. Understanding the main points
    Read the text and match the titles to the paragraphs
    a. Disadvantages of takeovers
    b. Raiders and assets-stripping
    c. Raids and bids
    d. The ‘make-or-buy’ decision
    e. The role of banks
    1. d 2. e 3. b 4. a 5. c
    1. Understanding details
    Find words or phrases in the text that mean the following:

    1 Adding new and different products or services Diversify


    2 A company’s sales expressed as a percentage Stock
    of the total sales in a market
    3 Reductions in costs resulting from increased Economies of scale
    production
    4 Money paid to investment banks for work done Fee
    5 All the individuals or organizations that Customer
    regularly or occasionally purchase goods or
    services from a company.
    6 Best, perfect or idea (adjective) Optimum
    7 Combined production or productivity that is Synergy
    greater than the sum of the separate parts
    8 People or companies that try to buy and sell Raider
    other companies to make a profit
    9 Large corporation or groups of companies Conglomerate
    offering a number of different products or
    services
    10 Buying a company in order to sell its most Asset-stripping
    valuable assets at a profit

    II. Exercises
    Exercise 1:Reading comprehension
    Read the first two paragraphs of the article. According to the Consultancy
    KPMG’s research about mergers:
    a) How many are successful?
    - 17% are successful.
    b) What effect do they have on the value of a company?
    - It reduces the share’s price enormously.
    c) What are two key reasons for their failure?
    - Over-optimism and management egos are the 2 main reasons.
    Read the rest of the article. Who believes:
    d) That mergers fail because of:
    - The way the two companies are combined? ->John Kelly believes that mergers fail
    because of the way 2 companies are combined.
    - Differences in culture? ->John Thorp believes that mergers fail because of cultural
    differences.
    - Unrealistic expectations about the future success of the new company? ->James
    Montier believes that mergers fail due to unrealistic expectation about the future
    success of the new company.
    e) That companies merger essentially:
    - From fear of competition? ->John Kelly believes that companies merge essentially
    from fear of competition.
    - To ensure their survival in a global market place? ->John Thorp believes that
    companies merge essentially to ensure their survival in a global marketplace.
    Read the text again and answer the questions:
    f) Why is the writer so surprised at the money spent on mergers?
    - Because so many evidence has shown the failure of mergers yet lots of money is
    still spent on it.
    g) What motivated Daimler-Benz to merge with Chrysler?
    - The merger was to survive and sell more products.
    h) What were the direct consequences of the culture clash?
    - The clash led to misunderstanding among leaders and many have quit because
    confident financial targets were not met.
    i) How important are individual personalities in mergers?
    -
    j) Why has the BP Amoco merger succeed when others have failed?
    - Because it merge with businesses that can produce ongoing cost efficiencies
    instead of one-off savings.
    Exercise 2:Vocabulary
    The writer uses idiomatic language throughout the text.
    1. Find examples of words and expressions which are related to marriage. Why do
    you think the writer uses this metaphor?
    - Examples: marriage, altar, doom, nuptial,…
    2. Take a word from box A and combine it with word from box B to form
    collocations.
    A B
    cost efficiency
    share price
    job cuts
    stock market
    investment strategy
    financial target
    share options
    takeover bid

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