ETHICAL ISSUES IN MERGERS &ACQUISITIONS

Name Komal Fulekar Tushar Joshi Priyanka Sawant Mandar Panchal

Roll No 09 14 37 39

MERGER
A full joining together of two companies In legal sense, Merger occurs when both the companies dissolve and fold their Assets & Liabilities into a Newly created third Entity.

ACQUISITION
Taking Possession of another Business Also called Takeover or Buyout It may be a share purchase .The buyer buys the shares of the Target company from the shareholders of the target company. The buyer will take on the company with all its Assets and Liabilities.

Business Ethics
"Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed. "The ethics of business is the ethics of responsibility. The business man must promise that he will not harm knowingly."

Steps towards ethical decision in M& A

Determination of acquisition price What exactly acquiring Merger transaction designed The form of payment Acquiring company setup an escrow account and deposit part of the purchase price Estimated time frame Scope of due diligence

Time allowed for negotiations compensation any operating restrictions imposed Which government will govern adjustment to the final purchase price

ETHICAL ISSUES IN MERGERS & ACQUISITIONS

Know and document who your client(s) is/are and is/are not Monitor conflicts throughout the life cycle of the deal Understand the transaction and its context; be wary if your client cannot clearly explain the purpose and how it will operate Maintain professional distance and skepticism; be alert for signs of financial distress Negotiate hard, but within ethical boundaries

ETHICAL ISSUES IN CERTAIN CASES.

Bad Blood And Human Resource Problems Issues Relating To Pay, Allowances And Career Progression

Cross Cultural Issues At Work And International Level. Decision Making Style Selection Of Perfect Leaders In Merged Company.