A PRESENTATION ON MERGERS AND ACQUISITIONS

A PRESENTATION ON MERGERS AND ACQUISITIONS:

A PRESENTATION ON MERGERS AND ACQUISITIONS BY SWATHI B.R NIKHIL M.S SUPRIYA Neeraj Omprakash

What is a merger?:

What is a merger? A Merger refers to the process whereby atleast two companies combine to form one single company . History of Mergers and Acquisitions First Wave Mergers Second Wave Mergers Third Wave Mergers Fourth Wave Mergers Fifth Wave Mergers

Strategic planning:

Strategic planning Strategic planning is a management tool period. As with any management tool, it is used for one purpose only: to help any organisation do a better job-to focus its energy, to ensure that members of the organisation are working toward the same goals, to assess and adjust the organisation’s direction in response to a changing environment. STRATEGIC PLANNING AND LONG RANGE PLANNING STRATEGIC THINKING AND STRATEGIC MANAGEMENT

TYPES OF M&AS:

TYPES OF M&AS Horizontal Merger Vertical Merger Conglomeration Product-Extension Merger Market-Extension Merger

Slide 5:

Difference between Market Extension Merger and Product Extension Merger The difference between market extension merger and product extension merger lies in the fact that the later is meant to add to the existing variety of products and services offered by the respective merging companies; while, in case of the former the two merging companies are dealing in similar products. In case of the market extension merger the two merging companies are operating in the same market and as far as product extension merger is concerned the two merging companies are operating in different markets.

Motives behind mergers and takeovers:

Motives behind mergers and takeovers Expansion and growth Tax Benefits Synergy Arresting downward trend Creating value to stakeholders Risk reduction Balancing product cycle Market leadership Market penetration Deploy surplus funds Increasing EPS Revival of sick units

Financial motives behind m&s:

Financial motives behind m&s Increasing EPS Tax Benefits Revival of sick units Tax Planning Creating value to stakeholders Deploy surplus funds Raising funds

BENEFITS OF M&AS:

BENEFITS OF M&AS Greater Value Generation Gain in Market Share Gaining Cost Efficiency

DRAWBACKS OF M&As :

DRAWBACKS OF M&As Costs of mergers and acquisitions Legal expenses Short-term opportunity cost Cost of takeover Potential devaluation of equity Intangible costs Consumer and shareholder drawbacks Decreased corporate performance and/or services Potentially lowered industry innovation Suppression of competing businesses Decline in equity pricing and investment value

Terms relating to m&aS:

Terms relating to m&aS Asset stripping Black Knight Dawn Raid Demerger or Spin off Shark repellants Carve-out Greenmail Grey Knight Hostile Takeover Macaroni Defence Management Buy In Management Buy Out Crown jewels lock up Poison Pill or Suicide Pill Defence

Slide 11:

MERGERS AND ACQUISITIONS IN INDIA MERGERS AND ACUISITIONS ACROSS INDIAN SECTORS Mergers and Acquisitions in India : the Latest Trends Major Mergers and Acquisitions in India International Mergers and Acquisitions Methods of Financing International M&As Significant International M&As