mergers and acquisitions

Examples of mergers and acquisitions in the following topics:

• Mergers and Acquisitions (M&As)

  • M&A refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of companies.
  • Exxon and Mobil officially signed an agreement and plan of merger on December 1,1998.
  • Mergers and Acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of different companies and similar entities that can help an enterprise grow rapidly.
  • Mergers and Acquisitions have, at times, failed to add as much value as initially imagined by the parties involved.
  • Mergers and Acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance, and management dealing with the buying and selling of different companies and similar entities that can help an enterprise grow rapidly.

• Consolidation Strategy

  • In business, consolidation refers to the mergers and acquisitions of many smaller companies into much larger ones for economic benefit.
  • In strategic management, it often refers to the mergers and acquisitions of many smaller companies into much larger ones.
  • Mergers and acquisitions (M&A) are aspects of corporate strategy, corporate finance, and management that deal with the buying, selling, dividing, and combining of different companies and similar entities.
  • M&A is different from joint ventures and other forms of strategic alliance, as mergers or acquisitions aim to create a single organization.
  • Other motives for merger and acquisition that may not add shareholder value include diversification, manager overconfidence, empire-building, and management compensation.

• The Role of an Advisor

  • The advisory group of an investment bank is primarily concerned with facilitating the mergers and acquisitions of businesses.
  • M&A stands for "mergers and acquisitions", which refers to the the buying, selling, dividing and combining of different firms.
  • The advisory group is charged with the task of helping buyers find sellers and vice versa, and then facilitating the deal.
  • In order for the acquisition to take place, the two boards and leadership must be agree on the terms.
  • Pricewaterhouse Cooper got it's name after the 1998 merger of Price Waterhouse and Coopers & Lybrand.

• M&A Trends

  • Modern trends in M&A largely revolve around the acquisition of up-and-coming firms to enable technological advantage and global competencies for larger firms.
  • Mergers and acquisitions (M&A) are a significant aspect of modern strategy, particularly in the technology and pharmaceutical arenas.
  • The mergers and acquisitions by these five companies alone represents the acquisition of hundreds of business and hundreds of billions of dollars.
  • Let's look at a few of the largest, most recent acquisitions from some of these influential companies to appreciate the scope and frequency of modern acquisition strategies.
  • This is a list of M&A reasoning over time, starting with the horizontal mergers in the late 19th century and moving into the globalization movements in the 21st century.

• The State of Competition

  • Current competition can be examined through market dominance, mergers and acquisitions, public sector regulation, and intellectual property.
  • Take Coke and Pepsi, two interdependent companies.
  • A merger or acquisition involves, from a competition perspective, the concentration of economic power in the hands of fewer than before.
  • Since mergers and acquisitions can lead to market dominance, competition law attempts to deal with this problem before it arises.
  • Describe how market dominance, mergers and acquisitions, public sector regulation, and intellectual property contribute to the current state of competition

• Valuing the Target and Setting the Price

  • In order to prepare an appropriate bid in the mergers and acquisition process, the buyer must be able to accurately value the target company.
  • Due diligence can be defined as the examination of a potential target for merger, acquisition, privatization, or a similar corporate finance transaction– normally by a buyer.
  • Due diligence involves a reasonable investigation focusing on material future matters and the asking of certain key questions, including how do we buy, how do we structure the acquisition, and how much do we pay?
  • Moreover, due diligence is an investigation on the current practices of process and policies and an examination aiming to make an acquisition decision via the principles of valuation and shareholder value analysis.
  • This is in order to reduce the number of failed mergers and acquisitions.

• Surprises and Returns

  • Announcements of Mergers and acquisitions (M&A) are a frequent type of surprise announcements.
  • Mergers and acquisition is a category of announcement that deals with corporate structure.
  • A merger or an acquisition could signal to an analyst that one particular company is financially weak, and it could downgrade its long run outlook for that company.
  • Any of this news has the potential to impact a particular company and, in some cases, competition, suppliers, and customers of that company.
  • Take a look at the creditworthiness ratings of different countries by Standard and Poors.

• Other Topics in M&A

  • Despite the goal of value creation and synergy, results from mergers and acquisitions are often disappointing compared with results that are predicted or expected.
  • Some reasons for failed mergers include lack of strategic fit, difference in corporate culture, lack of due diligence, poor integration, over-optimism, and failed valuation leading to too high of a purchase price.
  • A form of corporate cooperation lying between a merger or acquisition and internal growth is called a corporate alliance, or strategic alliance.
  • When raising funds for a merger or acquisition, firms may not seek funds from public offerings - either out of necessity or by choice.
  • Explain why a company may want to divest itself of an acquisition

• Types of Transactions

  • Transactions can be mergers or acquisitions, made with cash or stock, and they can be friendly or hostile.
  • Such transactions are usually termed acquisitions rather than mergers because the shareholders of the target company are removed from the picture and the target comes under the (indirect) control of the bidder's shareholders.
  • Whether a purchase is perceived as being a "friendly" one or a "hostile" depends significantly on how the proposed acquisition is communicated to and perceived by the target company's board of directors, employees, and shareholders.
  • Hostile acquisitions can, and often do, ultimately become "friendly," as the acquirer secures endorsement of the transaction from the board of the acquiree company.
  • Choose the best strategy and method for completing a merger or acquisition

• Reasons for Combining Businesses

  • Business combinations are referred to as mergers.
  • A merger happens when two firms agree to go forward as a single new company, rather than remain separately owned and operated.
  • Usually, one company will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it is technically an acquisition.
  • A merger can also be achieved independently of the corporate mechanics through various means - such as triangular merger, statutory merger, etc.
  • Hiring: Some companies use acquisitions as an alternative to the normal hiring process.