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i The phrase mergers and acquisitions refers to
the aspect of corporate strategy, corporate
finance, and management dealing with the
buying and selling , and combination of
different companies that can aid , finance , or
help a growing company in a given industry
grow rapidly without having to create anther
business entity

 
i pn acquisition is also known as takeover or
buyout ,is the buying of one company (target)
by another.
i pn acquisition may be private or public,
depending upon whether the acquiree or
mergering company is or is;nt listed in public
markets.
i pcquisition may be friendly or hostile
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i èhen one company
i èhen two firms agree
takes over another and
to go forward as a single
clearly establishes itself
company rather than
as a new owner
remain seperately
,purchase is called
owned and operated.
acquisitions.
i èhen the deal is
i Pure deal is when both
unfriendly between
the CEO agree to join
CEO͛s ,it is when the
together in best interest
acquiree doesn͛t want
of both their
to purchased .
companies.
   


ipsset valuation
iHistorical earning valuation
iFuture maintainable earning valuation
iRelative valuation
iDiscounted cash flow valuation


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i ÷ergers are generally differentiated from
acquisition partly by the way in which they are
financed & partly by the relevant size of the
companies.
 
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i Cp H : Payments are made in cash
i TOCK : Payment in acquiring company͛s
stock.
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i ECONO÷
OF CpE
i ECONO÷
OF COPE
i INCREp ED REVENUE OR ÷pRKET HpRE
i CRO  EING
i
NERG

i TppTION
i RE OURCE TRpN FER
i VERTICp INTEGRpTION
i p ORPTION


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 ÷ 
i üournal of business strategy suggests that
mergers and acquisitions destroy leadership
continuity in target companies.
i Top management teams for atleast a decade
following a deal.
i tudy found that target companies loose 21%
of their executives each year for atleast
10years.
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i ÷pRKET I÷IpRIT

i ÷pRKET CO÷PI÷ENTpR

i PRODUCTION OPERpTION I÷IpRIT

i PRODUCTION OPERpTION CO÷PI÷ENTpR

i ÷pRKET POèER
i PURCHp ING POèER
  
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i The rise of globalisation has exponentially
increased the necessity for ÷pIC Trust
accounts and security clearing for 0


exchanges for cross border ÷&p. In 1997
alone there over 2333 cross border
transaction worth a total of approximately
$298 million