PARTICIPANTS INVOLVED IN

RESTRUCTURING OF MERGER
AND ACQUISITION
AME: MANJITA SHET
DIV: PART II
ROLL NO.: 2018
MERGER DEFINITION

A merger simply means an agreement in which two companies settle into

an agreement to form a new third company or legal entity. In this,
merged companies are usually of equal size and have a similar number
of customers. On the other hand, in acquisition acquirer company is bigger
in nature as compared to an acquired company.
 ADVANTAGES

1) Market share: let’s say 2 companies are in a similar market and are in
competition.

2) Reduced cost of operations: another advantage of a merger, the size

of a merged company gets bigger compared to individual companies.
3) Revenue and profit growth: the companies may want to achieve the
objective of revenue and subsequently profit growth.

4) Expanding operation to new geographies: it’s hard for a company

to directly go and get established in the new market or geographies.
 DISADVANTAGES
1) A bigger company can become a monopoly in the market and then it
can increase the prices of is goods which is not good for the customer.

2) Another disadvantage of a merger could be of lack of communication

and coordination between the employees of different cultures.
3) Merging two firms that are doing similar activities may lead to
duplication and over capability within the company.
Restructuring

Restructuring is the corporate management term for the act of

reorganizing the legal, ownership, operational, or other structures of
a company for the purpose of making it more profitable.
PARTICIPANTS INVOLVED IN
RESTRUCTURING
1) COMPANIES
2) BOARD OF DIRECTORS
3) SHAREHOLDES
4) SUPPLIERS
5) CUSTOMERS