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com/university/mergers/ .investopedia.Mergers and Acquisitions y Introduction y Defining M&A y Advantages of M&A y Valuation Matters y Doing The Deal y Break Ups y Why They Can Fail y Conclusion y Source of Information: http://www.
or is bought by one. you'll have a better idea of whether you should cheer or weep when a company you own buys another company .Introduction y Mergers and acquisitions (M&A) and corporate restructuring are a big part of the orporate finance world y Once you know the different ways in which these deals are executed. y You will also be aware of the tax consequences for companies and for investors .
Defining M&A y One plus one makes three y The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. . cost-efficient company. y Two companies together are more valuable than two separate companies. y The companies will come together hoping to gain a greater market share or to achieve greater efficiency. target companies will often agree to be purchased when they know they cannot survive alone. Because of these potential benefits. y Strong companies will act to buy other companies to create a more competitive.
Advantages of M&A y Staff reductions y Economies of scale y Acquiring new technology y Improved market reach and industry visibility .
Varieties of Mergers y Horizontal merger y Vertical merger y Conglomeration .
Replacement Cost ± 3.Valuation Matters y Various methods and tools to assess a target company 1. Discounted Cash Flow (DCF) . Comparative Ratios y Price-Earnings Ratio (P/E Ratio) y Enterprise-Value-to-Sales Ratio (EV/Sales) 2 .
Break Ups y Regional Trade Agreement y Avenues available to a firm to raise equity and long term debts in International Markets y Why Euro is stronger than Dollar? y Will India be super power by 2050? y IMF and WORLD BANK y G-20 The London summit y Trade Barriers y Global human resource division -Intercultural Management .
Conclusion y Regional Trade Agreement y Avenues available to a firm to raise equity and long term debts in International Markets y Why Euro is stronger than Dollar? y Will India be super power by 2050? y IMF and WORLD BANK y G-20 The London summit y Trade Barriers y Global human resource division -Intercultural Management .