Merger and Acquizitions

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Mergers Acquisitionsand

business

combination

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Mergers Acquisitionsand

business

combination

Mergers

Amalgamation

Acquisitions

Takeovers

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Mergers Acquisitionsand

Merger

When two or more companies

combines into one company

may merge with existing co,

form new company

in Inia merger is calle Amalgamation

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Mergers Acquisitionsand

Merger

Merging !ompanies

are calle

Amalgamating

!ompanies

"ew !ompany is

calle

Amalgamate

!ompany

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Mergers Acquisitionsand

Merger

Merger

Through

Absorption

M#$%#$T&$'(%&

!'")'*I+ATI'"

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Mergers Acquisitionsand

Merger

Merger

Through

Absorption

An Absorption is !ombination of

two or more companies into an

existing company

All companies except one lose

their ientity

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Mergers Acquisitionsand

Western (nion

ank Merge

WithI+I

"ew ank 'f

Inia MergeWith -"

ank 'f "ew

.ork Merge

With Mellon/inancial

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Mergers Acquisitionsand

Merger

Merger

Through

!onsoliation

A consoliationis a combination of two or more

!ompanies into a new !ompany

All companies are issolveto form a new !ompany

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Mergers Acquisitionsand

Merger

Merger

Through

!onsoliation

&inustan

!omputers *t

&inustan

Instruments

*t

Inian )oftware

!o 0*t

Inian

$eprographic

*t &!* *T+

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Mergers Acquisitionsand

Types of Merger

Statutory merger is a merger where the

acquiring company assumes the assetsand the liabilities of the merged companies

A subsidiary merger is a merger of twocompanies where the target company

becomes a subsidiary or part of a

subsidiary of the parent company

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Mergers Acquisitionsand

Acquisition

An Acquisition may be an act of acquiring

effective control by one company over assetsor management of another company without

any combination of companies00

!ompanies may remain inepenent, separateut there may be change in control of

!ompanies00

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Mergers Acquisitionsand

Acquisition

'btaining !ontrol over management of a !ompany

M$T- A!T1at least 234 voting right of a !ompany

Investment of more than 564 share into a company $equire approval of )hareholers 7 ! %ovt0

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Mergers Acquisitionsand

+abur -harma to acquire Thai company

Aitya irla %roup to acquireTrinethra

!hina8s largest ank to take over

Inonesian ank

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Mergers Acquisitionsand

Acquisition 7 Takeover

When Acquisition is unfrienly or hostile

It may be calle Takeover

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Mergers Acquisitionsand

A Takeover is the purchase of one firm byanother firm

If the takeover is friendly, then it isbasically an acquisition, (IM!s acquisitionof "otus in #$$%&

If the takeover is not friendly, then it isknown as hostile takeover, ('racle!s bidfor eople)oft in *++&

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Mergers AcquisitionsandTactics to +efen Takeover00Merger

+ivestiture

!rown 9ewels

-oison -ill%reenmail

White :night

%olen parachutes

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Mergers Acquisitionsand

&ori;ontal

Merger

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Mergers Acquisitionsand

-&ori;ontal=a firm acquires another firm in the sameindustry (.aimler - /hrysler in #$$0&

-

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Mergers Acquisitionsand

Merger

'b>ectives

/aster %rowthImproving -rofitabilityManagerial #ffectiveness%aining Market -ower*eaership!ost $euction

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Mergers Acquisitionsand

Are there any alternatives to Mergers or acquisitions?

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Mergers Acquisitionsand

MergerAlternatives

9oint

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Mergers Acquisitionsand

M'TI

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Mergers Acquisitionsand

M'TI

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Mergers Acquisitionsand

M'TI

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Mergers Acquisitionsand

M'TI

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Mergers Acquisitionsand

M'TI

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

-lanning)earch 7

)creening

/inancial#valuation

Moe of

Merger

"egotiation

-ost

Merger

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

-lanning

Inustry +ata

Market %rowth

!ompetition

#ase 'f #ntry

!apital 7 *abour

+egree of $egulation

Target /irm

@uality 'f MgtMarket )hare )i;e

!apital )tructure

-rofitability

-rouction 7Marketing

!apabilities etc

'b>ective of Acquisitions)trengths 7 Weaknessesusiness (nits1roppe

or Ae

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

)earch 7

)creening

Where to look for caniatesIs it too large or small#ngage in relate or unrelate Activity#xport oriente or *ocal

Amenable or not amenable to merger

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

/inancial

#valuation

+etermining

#arnings!ash flowsAreas 'f $iskMaximum -rice -ayable&ow to /inance Merger

!urrent

Market

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

Moe of

Merger

$egulations

Time frame

$esources

+egree of control

Assume hien

liabilities

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

"egotiation

.our intentions shoul be to pay one ollar

more than the value to the next highest bier

an an Amount that is less than the value to you

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Mergers Acquisitionsand

)teps in

Analysis

'f

Mergers7

Acquisitions

-ost

Merger

!heck &ostility

Anticipate -roblems

)olve -roblems

Treat people

With +ignity

Art of taking over

!ompany

Without overtaking

ItB

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Mergers Acquisitionsand

#conomic Avantage C#AD if

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Mergers Acquisitionsand

8conomic Advantage

#A G

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Mergers Acquisitionsand

!A)# )T(+.

HP COMPAQ

Merger

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Mergers Acquisitionsand

Arguments About The Merger)upporters

9 :2/'MA; will become the leader in mostof the sub2sectors

9 Ability to offer better solutions to customer!s

demands

9 . efforts and customer research

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Mergers Acquisitionsand

9 .ecrease in costs and increase in

profitability

9 3inancial strength to provide chances to

invest in new profitable areas

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Mergers Acquisitionsand

Arguments About The Merger'pponents9 Acquiring market share will not mean the

leadership9

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Mergers Acquisitionsand