BY:- ARCHISMAN DASH

EN NO. 16BSP0455GG

MERGERS AND ACQUISITIONS

WHAT ARE MERGERS AND ACQUISITIONS?

Mergers and Acquisitions (M&A) are potential strategies for ensuring the accelerated growth of a business or a company.

REASONS FOR M&A?Synergyo Operating Synergyo Financial Synergy

Acquiring New TechnologyImproved ProfitabilityAcquiring A CompetencyEntry Into New Markets Access To FundsTax Benefits

WHAT ARE MERGERS?Combination Of Two Companies Into One Large Company

Involves Stock Swap Or Cash Payment To The TargetAssets And Liability Are MergedCombining Companies Are Dissolved And New Entity OperatesHas Two Forms; Amalgamation (A+B=C) Absorption (A+B=A)

TYPES OF MERGERSConglomerateHorizontalMarket ExtensionVerticalProduct Extension

WHAT IS ACQUISITION? Corporate Action In Which A Company Buys Most, If Not

All, Of The Target Company's Ownership Stakes It's A Growth Strategy, Beneficial In Taking Over Existing Firm Operations Are Paid Either In Cash Or Acquiring Company's Stock Or Both It's Also Referred As 'Takeover'

TYPES OF ACQUISITIONSFriendly Acquisition

Reverse AcquisitionBack Flip AcquisitionHostile Acquisition

PICTORIAL REPRESENTATION OF M&A

REASONS OF FAILURE OF M&A?

Unrealistic Price Paid For A TargetDifficulties In Cultural IntegrationOverstated SynergiesIntegration DifficultiesPoor Business FitInadequate Due DiligenceHigh LeverageBoardroom SplitRegulatory IssuesHuman Resources Issues

EXAMPLES OF M&A'SThe $28.1 Billion Acquisition Of Linkedin By MicrosoftThe $16.6 Billion Deal For Tyco International By Johnson ControlsThe $30.6 Billion Bid For St Jude Medical By Abbott LaboratoriesThe $32 Billion Deal Between Shire And BaxaltaSherwin-williams Takeover Of Valspar For $11.3 In MarchThe Merger Between Northstar Asset Management Group, Its Former Parent Northstar Realty Finance, And Colony Capital For $11.3 Billion In JuneThe $11.4 Billion Acquisition Of Fortis By ITC Holdings Announced In FebruaryGreat Plains Energy’s Bid For Westar Energy Worth $12.2 BillionThe $12.4 Billion Acquisition Of ADT By Protection 1

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