Ppt of merger and acquisition
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Transcript of Ppt of merger and acquisition
PPT of Merger and Acquisition
Shiver katal 13MBA1253
Merger A merger refers to a combination of two or
more companies, usually of not greatly disparate size, into one company.
A merger involves the mutual decision of two companies to combine and become one entity; it can be seen as a decision made by two "equals".
Merger refers to a situation when two or more existing firms combine together andform a new entity.
Types of Merger Horizontal MergerHorizontal mergers are those mergers where
the companies manufacturing similar kinds of commodities or running similar type of businesses merge with each other.
Examples of horizontal mergerLipton India and Brooke Bond.
Bank of Madura with ICICI Bank.
BSES Ltd with Orissa Power Supply Company.
Associated Cement Companies Ltd with Damodar Cement.
Vertical MergerA merger between two companies producing
different goods or servicesExamples:-Time Warner cable operation- Turner CorporationPixar-Disney Merger
CONGLOMERATE MERGER
Conglomerate mergers take place when the two firms operate in different industries.
Types of conglomerate mergers:
1.Pure conglomerate mergers involve firms with nothing in common.
2. Mixed conglomerate mergers involve firms that are looking for product extensions or market extensions.
ExampleWalt Disney Company and the American
Broadcasting Company.
AmalgamationAmalgamation signifies the transfers of all
are some part of assets and liabilities of one or more than one existing company or two or more companies to a new company.
AcquisitionWhen one company takes over another and clearly
established itself as the new owner, the purchase is called an acquisition.
Acquisition is generally considered negative in nature
Acquisitions
Importance of mergerGrowth and diversificationSynergyFund raisingIncreased managerial skill/technologyTax considerationIncreased ownership liquidityDefense against takeovers
Challenges to mergers