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    Sagar Mehta F-1 88 Meger and Acquisition

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    aryan_cool08
    This document discusses mergers and acquisitions. It defines a merger as a transaction where two firms integrate operations on an equal basis to create stronger competitive advantages by combining resources and capabilities. An acquisition occurs when one firm purchases another with the intent of using a core competence to make the acquired firm a subsidiary. The document examines the financial manager's decisions during acquisitions and different forms of business combinations. Mergers and acquisitions are important for corporate strategy and globalization but also create stress due to new goals, structures and cultures that must be integrated. Strategic planning is key to identifying potential synergies between companies.

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    Sagar Mehta F-1 88 Meger and Acquisition

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    aryan_cool08
    33 views9 pages
    This document discusses mergers and acquisitions. It defines a merger as a transaction where two firms integrate operations on an equal basis to create stronger competitive advantages by combining resources and capabilities. An acquisition occurs when one firm purchases another with the intent of using a core competence to make the acquired firm a subsidiary. The document examines the financial manager's decisions during acquisitions and different forms of business combinations. Mergers and acquisitions are important for corporate strategy and globalization but also create stress due to new goals, structures and cultures that must be integrated. Strategic planning is key to identifying potential synergies between companies.

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    This document discusses mergers and acquisitions. It defines a merger as a transaction where two firms integrate operations on an equal basis to create stronger competitive advantages by combining resources and capabilities. An acquisition occurs when one firm purchases another with the intent of using a core competence to make the acquired firm a subsidiary. The document examines the financial manager's decisions during acquisitions and different forms of business combinations. Mergers and acquisitions are important for corporate strategy and globalization but also create stress due to new goals, structures and cultures that must be integrated. Strategic planning is key to identifying potential synergies between companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views9 pages

    Sagar Mehta F-1 88 Meger and Acquisition

    Uploaded by

    aryan_cool08
    This document discusses mergers and acquisitions. It defines a merger as a transaction where two firms integrate operations on an equal basis to create stronger competitive advantages by combining resources and capabilities. An acquisition occurs when one firm purchases another with the intent of using a core competence to make the acquired firm a subsidiary. The document examines the financial manager's decisions during acquisitions and different forms of business combinations. Mergers and acquisitions are important for corporate strategy and globalization but also create stress due to new goals, structures and cultures that must be integrated. Strategic planning is key to identifying potential synergies between companies.

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    Sagar Mehta

    F-1 88

    MEGER AND ACQUISITION


     Every decision that a business makes has financial
    implications, and any decision which affects the finances of a
    business is a corporate finance decision.
     Defined broadly, everything that a business does fits under the
    rubric of corporate finance.
     Regardless of whether you work for a corporation or are an
    external party with an interest in a particular corporation,
    understanding and being able to analyze corporate decisions is
    important
     Merger:
     A transaction where two firms agree to integrate their operations on a relatively coequal basis
    because they have resources and capabilities that together may create a stronger competitive
    advantage

     Acquisitions:
     A transaction where one firm buys another firm with the intent of more effectively using a core
    competence by making the acquired firm a subsidiary within its portfolio of businesses
     Different types of acquisitions.

     How A typical Acquisitions Proceeds.

     We examine in-depth the decisions that a financial


    manager has to make during an acquisitions.

     Different Forms of Combinations of firms


     Mergers and acquisitions (M&A) in the corporate world are achieving increasing
    importance and attention especially in the advent of intense globalization. This is
    evident from the magnitude and growth of deal values and resultant ‘mega-mergers’
    transacted in recent times. As expert advisory are sought in M&A activities to
    facilitate the undertaking and maximise the value of the transaction, advisory firms
    begin to play a more significant and at the same time lucrative role in M&A
    activities, to the extent of determining the outcome of such projects. Being an area
    of limited research, it is thus valuable to investigate what M&A advisory firms view
    as critical success factors to the projects they undertake. Consequently, the research
    question of “What are the critical success factors for merger & acquisition projects
    in the view of merger & acquisition advisory firms” has been raised. A list of ten
    critical success factors for M&A projects is firstly identified from an extensive
    literature review. These factors are
    (1) Complete and Clear objectives, goals and scope of the
    project,
    (2) Client consultation and acceptance.
    (3) Project manager’s competence and commitment.
    (4) Project team member’s competence and commitment
    (5) Communication and information sharing and exchange.
    (6) Project plan development.
    (7) M&A advisory firm’s resource planning.
    (8) Time management and tight secrecy
    (9) Price evaluation and financing scheme.
    (10) Risk management.
    In the project the data has been collected from
    the secondary source from various website even
    last year projects has been reviewed for the
    presentation
    www.google.com
    www.scribd.com
    www.athuorstream.com
    Mergers and acquisitions are among the most difficult of business transactions.
    There is no shortage of stress. All of a sudden a new company must be formed with:
     Newer and more ambitious financial goals.
     Quicker turnaround times for growth.
     Restructuring of departments and the old company.
     Introduction of cultural differences.
     Higher rates of employee turnover.
     Lower levels of productivity.
     Communication problems.

    There are numerous reasons why companies decide to merge. Some studies indicate that companies merge
    for improving efficiencies and lowering costs. Other studies show that companies merge to increase
    market share and gain a competitive advantage. The ultimate goal behind a merger and acquisition is to
    generate synergy values. Good strategic planning is the key to understanding if synergy values do in fact
    exist. A well-researched and realistic plan will dramatically improve the chances of realizing synergy
    values.

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