Unit2b.MergersAcquisition.pptVIP

Unit 2b. Mergers Acquisitions Part I Background informationPart II ReadingPart III Listening Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. Acquisitions Also known as takeovers The buying of one company the target by another. Reverse takeover A smaller firm acquires management control of a larger or longer established company and keep its name for the combined entity. Mergers A combination of two companies into one larger company. Beneficial to both parties Stock swap or cash payment Reverse merger A deal that enables a private company to get publicly listed in a short time period. Occurs when a private company, usually one with no business and limited assets. Hostile and Friendly Acquisitions Friendly acquistition Companies cooperate in negotiations DANON VS Wahaha Hostile and Friendly Acquisitions Hostile acquisition Target is unwilling to be bought or target’s board has no prior knowledge of the offer Usually by purchasing the majority of outstanding shares of the target in the open market Against the will of target’s board Yahoo VS Microsoft Classifications of mergers Horizontal mergers 同业合并、横向合并 Lenovo VS IBM Vertical mergers 纵向合并 MGM VS Sony Congeneric mergers 同源合并 Computer Monitor VS Projector Conglomerate mergers 集团合并、混合合并 Marionnaud VS Watsons Questions: Mergers and acquisitions: what are the differences? Acquisitions one takes over another/established itself as the new owner Target ceases to exist Mergers: Two firms agree to make a single new company Daimler-Benz VS Chrysler Distictions Read the passage on Page 22. Find all examples of MA in this passage. What are the motives of MA behind each example? II. Motives behind MA 1+1 2 Exxon Mobil Deutsche Bank VS Bankers Trust Siemen