M&A Overview
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ABOUT US Unit 13 - ENM401 – Summer 2016 Lê Thị Yến Lê Trường Nam Phan Lạc Hưng Nguyễn Ngọc Hưng Trần Nam Trung Hồ Minh Tuấn
Transcript of M&A Overview
ABOUT USUnit 13 - ENM401 – Summer 2016
Lê Thị YếnLê Trường NamPhan Lạc HưngNguyễn Ngọc HưngTrần Nam TrungHồ Minh Tuấn
TAKEOVERS MERGERS
1 Background M&A in Viet Nam
2 Takeover, types and example
3 Merger, types, pros & cons and example
4 Why M&A deals fail?
TABLE OF CONTENT
M & A
Merger Acquisition
is raising investment in 2016,
after AEC is established, good and retail.
Thailand$5.2bn, Viet Nam, 2015
341M&A DEALS
Real Estate
69% Involve investment
from foreign
66%
GENERAL BACKGROUNDM&A VIET NAM
M&A DEALS
ACQUISITION
An acquisition is the purchase of all a portion of a corporate asset or target company
Definition
• Acquisition are paid in cash/ a combination of cash and the acquiring company’s stock/ debt• Acquisition are often done by another company in a similar line of
business/buy a direct competitor/ companies in an unrelated field.• Acquisition may be done by a financial company/ an individual
financier
Types of Acquisition
DEAR COMPANY C, CAN WE PLEASE TAKE OVER? CHECK
□YES OR □NO
Types of Acquisition
Friendly Hostile
The Board of Directors approves the purchase before it happens
The Board rejects the offer, but the buyer tries to purchase the company anyway by buying a controlling amount of stocks
approves rejects
Example of Acquisition
THAILAND’s CENTRAL Group takeovers Big C Vietnam from France’s
Casino GroupDeal: $1.1 billion
MERGER“We get talent and scale from merger”(Angela Braly)
Merger is the deal to unite two existing companies into one new company
Definition
Merger is the deal to unite two existing companies
into one new company
Definition
unite two
one
Merger is the deal to unite two existing companies
into one new company
Definition
unite two
one
Reach and expand new segment
Merger is the deal to unite two existing companies
into one new company
Definition
unite two
one
Reach and expand new segment
Gain market share
Types of Merger
MERGER
HorizontalSame industry
Market Extension
Same products, different markets
Product Extension
Add together products
Vertical A finished good
combine
ConglomerateNothing in common
Types of Merger
MERGER
HorizontalSame industry
Market Extension
Same products, different markets
Product Extension
Add together products
Vertical A finished good
combine
ConglomerateNothing in common
Types of Merger
MERGER
HorizontalSame industry
Market Extension
Same products, different markets
Product Extension
Add together products
Vertical A finished good
combine
ConglomerateNothing in common
Types of Merger
MERGER
HorizontalSame industry
Market Extension
Same products, different markets
Product Extension
Add together products
Vertical A finished good
combine
ConglomerateNothing in common
Types of Merger
MERGER
HorizontalSame industry
Market Extension
Same products, different markets
Product Extension
Add together products
Vertical A finished good
combine
ConglomerateNothing in common
Pros & Cons of Merger
Pros
• Expand the scale of company• Attract employees• Make company more valuable• Customer addition
Cons
• Conflict among big shareholders• Affect to the right of small shareholders• Cultural conflicts
Example of Merger
Merger:24/1/2001Split: 2011
WHY M&A FAIL?
Fail?
Why M&A deals fail?
Culture integration issue
Getting deal structure or price wrong
Not focusing enough on customer and sale
External factor
Limited or no involvement from the owners
Not communicating clearly
Fail?
Why M&A deals fail?
Culture integration issue
Getting deal structure or price wrong
Not focusing enough on customer and sale
External factor
Limited or no involvement from the owners
Not communicating clearly
Fail?
Why M&A deals fail?
Culture integration issue
Getting deal structure or price wrong
Not focusing enough on customer and sale
External factor
Limited or no involvement from the owners
Not communicating clearly
Fail?
Why M&A deals fail?
Culture integration issue
Getting deal structure or price wrong
Not focusing enough on customer and sale
External factor
Limited or no involvement from the owners
Not communicating clearly
Fail?
Why M&A deals fail?
Culture integration issue
Getting deal structure or price wrong
Not focusing enough on customer and sale
External factor
Limited or no involvement from the owners
Not communicating clearly
Fail?
Why M&A deals fail?
Culture integration issue
Getting deal structure or price wrong
Not focusing enough on customer and sale
External factor
Limited or no involvement from the owners
Not communicating clearly
