Success and Failure of Merger

and Acquisition

PARTICIPANTS:-
JANICE -3, AMOL – 6, ASHLEY-4, SUCHITRA – 8,
SUNANYA – 12
 Difference between Mergers &
Acquisitions
Merger
The case when two
companies (Often of the
same size) decide to move
forward as single new
company instead of operating
business separately
The stock of both the
companies are surrendered
while new stock are issued
Acquisition
The cases when one company
takes over another and
establishes itself as the new
owner of the business
The buyer company
”swallows” the business of
the target company which
ceases to exist.
Brief about Snap deal
Founded in 2010, Snapdeal was once known for its thriving consumer
electronic business.Shutting shop was not an option for Founders Kunal Bahl and Rohit Bansal,
despite the failed merger attempts with their rival Flipkart.So, the founders and the board in
2017, sat down and made a detailed, well-strategised plan - Snapdeal 2.0 - to pull the company
out of shambles.
Reason for Merger failure
1. There was no consensus from the founders of Snapchat, Nexus Venture Partner, Premjiinvest
and other minority shareholders as there was a differential payout to the investors.
2. There was a disappointment amongst the employees.
3. Huge Tax liabilities on Snapdeal investors due to a complex structure.
4. The non-solicit clause of 5 years by Flipkart, this clause could have been the reason of
potential conflict as the investors have investments in many e-commerce companies Snapdeal
called off the deal with Flipkart to go with their Plan B, Snapdeal 2.0
Video
Thank you