9b4bFM-mergers and acquisition

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By: mptri (1 month(s) ago)

hello, i m a new user of this page. u have made wonderful presentation about M & A. Would u allow me to download it please?

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Slide 1:

b usiness c ombination

Slide 2:

Why Business Combination? Forms Of Business Combination

Slide 3:

b usiness c ombination Mergers Amalgamation Acquisitions Takeovers

Slide 4:

AI & IA TO MERGE IN APRIL TATA LIKELY TO REVISE CORUS TAKEOVER OFFER AMTEK AUTO RENEW BID TO ACQUIRE UK COMPANY TATA GROUP IN RACE FOR DAEWOO ROMANIA GE SNAPS UP SMITHS AEROSPACE FOR $4.8 BILLION HINDUJAS ENTER RACE FOR HUTCH’S HTL STAKE IDBI BUYS 10% STAKE IN BAG FILMS RADIO UNIT US AIRWAYS RAISES BID FOR DELTA

Slide 5:

Merger When two or more companies combines into one company may merge with existing co, form new company…… in India merger is called Amalgamation

Slide 6:

Merger Merging Companies are called Amalgamating Companies New Company is called Amalgamated Company

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Merger Merger Through Absorption MERGER THROUGH CONSOLIDATION

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Merger Merger Through Absorption An Absorption is Combination of two or more companies into an existing company All companies except one lose their identity

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Western Union Bank Merged With IDBI New Bank Of India Merged With PNB Bank Of New York Merged With Mellon Financial

Slide 10:

Merger Merger Through Consolidation A consolidation is a combination of two or more Companies into a new Company All companies are dissolved to form a new Company

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Merger Merger Through Consolidation Hindustan Computers Ltd Hindustan Instruments Ltd Indian Software Co .Ltd Indian Reprographic Ltd HCL LTD

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Acquisition An Acquisition may be an act of acquiring effective control by one company over assets or management of another company without any combination of companies…….. Companies may remain independent, separate But there may be change in control of Companies……..

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Acquisition Obtaining Control over management of a Company MRTP ACT-at least 25% voting right of a Company Investment of more than 10% share into a company Require approval of Shareholders & C Govt.

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Dabur Pharma to acquire Thai company Aditya Birla Group to acquire Trinethra China’s largest Bank to take over Indonesian Bank

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WE ARE LOOKING TO ACQUIRE Pl. send proposals & contact details to indianhealth@gmail.com HOSPITALS We are leading business house with a reputed presence in In health care sector in the country We are likely to acquire medium to large sized hospitals in Metros, state capitals & tier 1 cities. They could be on out right purchase or long term lease. We are also open to Joint Ventures

Slide 16:

Acquisition & Takeover When Acquisition is unfriendly or hostile It may be called Takeover

Slide 17:

Mittal -Arcelor Case Mittal Steel bids for Arcelor-27.1.06 Mittal after Arcelor’s Cash -2.2.06 Mittal and Arcelor seek Support-6.2.06 Arcelor investors favour mittal but want more-15.2 Arecelor offer sweet,hostality wanning-mittal 16.2 Arecelor declared higher dividend than mittal-16.2 Mittal Steel Launched formal take over-19.5 Mittal raised bid before share holders meet-19.5 A,lor to merge with Russian Company Severstal 26.5 Mittal –Arcelor start talks -9.6 Arecelor rejects mittal bid-12.6

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Mittal -Arcelor Case Mital woos Arcelor with 70% growth-13.6 Mittal may hike offer-21.6 Mittal Arcelor close to friendly deal-23.6 Mittal wins over more shareholders23.6 Arcelor gives in to Mittal-26.6 Did Mittal Yield too much-29.6 Arcelor,s largest S,holder reject Severstal - 30.6 Mittal Steel claims 92% shares of Arcelor -27.7 Mittal steel announces post merger plan-8.8 Merged Arcelor-Mittal named Mike Repley As CEO OF US operations

Slide 19:

Tactics to Defend Takeover…..Merger Divestiture Crown Jewels Poison Pill Greenmail White Knight Golden parachutes

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Horizontal Merger Vertical Merger Conglomerate Merger FORMS OF MERGER

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Merger Objectives Faster Growth Improving Profitability Managerial Effectiveness Gaining Market Power Leadership Cost Reduction

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Are there any alternatives to Mergers or acquisitions?

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Merger Alternatives Joint Venture Strategic Alliance Eliminating Inefficient Operations Productivity Improvement Hiring Capable Managers

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MOTIVES & BENEFITS OF MERGERS Limit Competition Market Power Diversification Growth Economy of Scale Access to Foreign Market Resources Displace existing Management Circumvent Govt Regulations Aggressiveness Diversifying Risk Profitability

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MOTIVES & BENEFITS OF MERGERS Accelerated Growth Expanding Existing Markets Entering New Markets Expand Internally Expand Externally Developing Operating Facilities Price Paid for Merger

Slide 26:

MOTIVES & BENEFITS OF MERGERS Enhanced Profitability Economies of Scale Operating Economies Synergy

Slide 27:

MOTIVES & BENEFITS OF MERGERS Reduction in Tax Liability Carry forward Losses Tax on Share

Slide 28:

MOTIVES & BENEFITS OF MERGERS Financial Benefits Eliminating Financial Constraints Deploying Surplus Cash Enhancing Debt Capacity Lowering Financial Costs

Slide 29:

MOTIVES & BENEFITS OF MERGERS Increased Market Power Market Share Bargaining Power Technological Advancement Pricing Limiting Competition

Slide 30:

Steps in Analysis Of Mergers & Acquisitions Planning Search & Screening Financial Evaluation Mode of Merger Negotiation Post Merger

Slide 31:

Steps in Analysis Of Mergers & Acquisitions Planning Industry Data Market Growth Competition Ease Of Entry Capital & Labour Degree of Regulation Target Firm Quality Of Mgt Market Share Size Capital Structure Profitability Production &Marketing Capabilities etc Objective of Acquisitions Strengths & Weaknesses Business Units-dropped or Added

Slide 32:

Steps in Analysis Of Mergers & Acquisitions Search & Screening Where to look for candidates Is it too large or small Engaged in related or unrelated Activity Export oriented or Local Amenable or not amenable to merger

Slide 33:

Steps in Analysis Of Mergers & Acquisitions Financial Evaluation Determining Earnings Cash flows Areas Of Risk Maximum Price Payable How to Finance Merger Current Market Value Premium Value

Slide 34:

Steps in Analysis Of Mergers & Acquisitions Mode of Merger Regulations Time frame Resources Degree of control Assume hidden liabilities

Slide 35:

Steps in Analysis Of Mergers & Acquisitions Negotiation Your intentions should be to pay one dollar more than the value to the next highest bidder and an Amount that is less than the value to you

Slide 36:

Steps in Analysis Of Mergers & Acquisitions Post Merger Check Hostility Anticipate Problems Solve Problems Treat people With Dignity “Art of taking over Company Without overtaking It”

Slide 37:

Economic Advantage (EA) if V PQ > (V P + V Q ) Where V PQ = Combined PV of merged firms V P = Worth of Firm P V Q =Worth of firm Q Value Created by Merger

Slide 38:

Economic Advantage EA = V PQ - (V P + V Q ) Value Created by Merger

Slide 39:

New Bank Of India merged with Punjab National Bank Global Trust Bank Taken over by OBC Western United Bank taken over by IDBI International Data Management By HCL Ltd Chhabrias took over Shaw Wallace, Dunlop Ashok Leyland By Hindujas Spensers By Goenkas VSNL by Tata Tata Tea Ltd Acquired Consolidated Coffee Company Tomco with HLL Tata Fertilizers Merged With Tata Chemicals Sundaram Clayton Merged With TVS-suzuki Ltd MITTAL STEEL'S ACQUISITION OF ARCELOR Few Mergers, Acquisitions, Take over