K. P.

PATEL SCHOOL OF MANAGEMENT & COMPUTER STUDIES

Mergers & Acquisition (2840201)
DATE: 06/03/2013
TOTAL MARKS: 40

Q-1 Explain any two from the following:

( 20 Marks)

1. What is Corporate Restructuring? Explain the forms of Corporate Restructuring.

2. What is Due Diligence? Explain the process with parties involved and interested in Due
diligence process.
3. Explain the process and application of Merger and Acquisition.

Q-2 K ltd is considering acquiring T ltd, the following information is

available:
( 10 Marks)
Company

PAT(Rs)

No of Equity shares

K
T

25,00,000
7,50,000

5,00,000
1,25,000

Market value per

share(Rs)
100
80

Exchange of Equity shares for acquisition is based on current market value as above. There is no
synergy advantage available.
1. Find the Earning per share for the company K ltd after merger.
2. Find the exchange ratio so that shareholders of T Ltd would not be at a loss.

Q-3 Explain the Concept of Valuation? Which factors should be considered

for Valuation? And explain the methods for Valuation in detail. ( 10 Marks)