Sagar Mehta

F-1 88

MEGER AND ACQUISITION

 Every decision that a business makes has financial
implications, and any decision which affects the finances of a
business is a corporate finance decision.
 Defined broadly, everything that a business does fits under the
rubric of corporate finance.
 Regardless of whether you work for a corporation or are an
external party with an interest in a particular corporation,
understanding and being able to analyze corporate decisions is
important
 Merger:
 A transaction where two firms agree to integrate their operations on a relatively coequal basis
because they have resources and capabilities that together may create a stronger competitive
advantage

 Acquisitions:
 A transaction where one firm buys another firm with the intent of more effectively using a core
competence by making the acquired firm a subsidiary within its portfolio of businesses
 Different types of acquisitions.

 How A typical Acquisitions Proceeds.

 We examine in-depth the decisions that a financial

manager has to make during an acquisitions.

 Different Forms of Combinations of firms

 Mergers and acquisitions (M&A) in the corporate world are achieving increasing
importance and attention especially in the advent of intense globalization. This is
evident from the magnitude and growth of deal values and resultant ‘mega-mergers’
transacted in recent times. As expert advisory are sought in M&A activities to
facilitate the undertaking and maximise the value of the transaction, advisory firms
begin to play a more significant and at the same time lucrative role in M&A
activities, to the extent of determining the outcome of such projects. Being an area
of limited research, it is thus valuable to investigate what M&A advisory firms view
as critical success factors to the projects they undertake. Consequently, the research
question of “What are the critical success factors for merger & acquisition projects
in the view of merger & acquisition advisory firms” has been raised. A list of ten
critical success factors for M&A projects is firstly identified from an extensive
literature review. These factors are
(1) Complete and Clear objectives, goals and scope of the
project,
(2) Client consultation and acceptance.
(3) Project manager’s competence and commitment.
(4) Project team member’s competence and commitment
(5) Communication and information sharing and exchange.
(6) Project plan development.
(7) M&A advisory firm’s resource planning.
(8) Time management and tight secrecy
(9) Price evaluation and financing scheme.
(10) Risk management.
In the project the data has been collected from
the secondary source from various website even
last year projects has been reviewed for the
presentation
www.google.com
www.scribd.com
www.athuorstream.com
 Mergers and acquisitions are among the most difficult of business transactions.
There is no shortage of stress. All of a sudden a new company must be formed with:
 Newer and more ambitious financial goals.
 Quicker turnaround times for growth.
 Restructuring of departments and the old company.
 Introduction of cultural differences.
 Higher rates of employee turnover.
 Lower levels of productivity.
 Communication problems.

There are numerous reasons why companies decide to merge. Some studies indicate that companies merge
for improving efficiencies and lowering costs. Other studies show that companies merge to increase
market share and gain a competitive advantage. The ultimate goal behind a merger and acquisition is to
generate synergy values. Good strategic planning is the key to understanding if synergy values do in fact
exist. A well-researched and realistic plan will dramatically improve the chances of realizing synergy
values.