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Cecos university IMIS peshawar:

Cecos university IMIS peshawar Presentation of corporate finance.

Topic: Merger and acquisition:

Topic: Merger and acquisition Presenting by : Inam – ul-haq . Presenting to: Madam farkhanda .

Mergers and Acquisitions::

Mergers and Acquisitions: T wo or more companies coming together to form into one bigger organization or buyout of one company by another.

What is Merger?:

What is Merger? These are business transactions in nature involving payment for each unit of stock. A merger is a consolidation of two or more companies into one, an entirely new company.

What is Acquisition?:

What is Acquisition ? An acquisition is the purchase of one business or company by another company or other business entity. For example philips morris acquire pakistan lakson tobacco

Types of Mergers::

Types of Mergers: Mergers come under three broad categories called Horizantal Vertical Conglomerate

Horizantal Merger::

Horizantal Merger: A Horizantal Merger is a merger taking place between companies belonging to one industry. The products of these companies are close substitutes

Vertical Merger::

Vertical Merger: A Vertical Merger is a merger which takes place between companies belonging to same industry, but the line of business is different. For example, a company in the telecommunications industry acquiring an internet service provider. Or a mobile phone based company acquiring a land phone based company

Conglomerate Merger::

Conglomerate Merger: A Conglomerate Merger is a type of merger in which companies which are totally unrelated coming together. For example, a company which is producing heavy engineering products acquiring a 7star chain of hotels can be considered as Conglomerate merger

Types of acquisition: :

Types of acquisition: Acquisition by asset: Buys some or all of the target asset liabilities directly from the salers.If all assets are acquired the target is liquideted . Stock acquisition: The acruire buys the taergets stock of from selling shareholders.


Benefits: When firm enter to the new markets. To increase market share. To increase profitability. To decrease the cost of production. TO gain the competitiveness.

Why Corporations merge?:

Why Corporations merge? Why do companies buy other companies or two or more companies merge into one large company? The reason is that it is very easy to exercise market control when the amount of competition is reduced

Reasons for Merging or Acquiring:

Reasons for Merging or Acquiring R easons include growing economies provide better opportunities which are best made use only through combining companies. In an economy troubled by ever-increasing prices of raw materials, mergers and acquisitions provide economies to scale in production