MARRIAGES OF

CORPORATE
Mergers in corporate world and its effects on share prices.

By:-
Harshad Kulkarni
OBJECTIVE BEHIND DOING THIS PROJECT ?
 In today's global and competing world; Merger has
become an ideal step in corporate world which enables
them to enjoy the benefits of growth both physical and
financial.

 As Mergers lead to growth; they also have a very major

impact on the market price of shares in various ways.

 Further During my SIP time I will study the share market

and with the help of it analyze the effects of mergers on
share prices.
 WHAT IS MERGER?
 When two or more companies combine together it is known as
Merger.

A co.
ltd.
C co.
ltd
B co.
ltd.
1. Cogeneric Merger :- Merger within same industries with
same business activity.

2. Horizontal Merger : Mergers between business competitors

who are manufacturer of same type of product or render
similar services . for e.g.. Coca-cola and parle

3. Vertical Merger : merger between companies which are

complementary to each other. for e.g..
Microsoft and hotmail , google and youtube.

4. Conglomerate Merger:- Merger between two distinct

industries. for eg. Pepsico and pizza
hut
 Why Merger ????

1. consolidate and create critical size

2. concentrate on core competencies and business
3. gain higher market shares
4. lower risk compared to developing new products
5. increased  diversification
6. overcome entry barriers
7. increase market power
8. broadening the product portfolio
9. avoid excess of competition 
 WAYS OF MERGER

 By purchase of assets

 By purchase of common shares

 By exchange of shares for assets

 By exchange of shares for shares

FACTORS INFLUENCING SHARE
PRICES!
 Demand and Supply

 Market Cap

 News

 Price/Earning Ratio

 Earning Per Share

 Regulatory and Government Policies

 Insider Trading.
 WHAT'S NEXT?
 Understand share market in more depth by working in
PSE securities.
 Study Different Mergers in India; there causes and
effects .
 Study how the valuation of mergers are done.

 when the share prices are affected positively and when

negatively.
 reach at an conclusion : In which conditions the merger
is beneficial and when merger can prove to be risky .