Fall 2010

Master of Business Administration- MBA Semester 3

MF0011 – Mergers and Acquisitions - 4 Credits
(Book ID: B1036)
Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Give some examples of synergies from Merger [10 Marks]

Q.2 why strategy important for M&A Planning? [10Marks]

Q.3 Fill in the blanks below, and discuss your results. [10Marks]

Comparable Companies Ratio

(Company W is compared with Companies TA, TB, TC)

Ratio Company TA Company TB Company TC Average

Enterprise 2.0 2.5 1.0

market value/

revenues

Enterprise 20 10 5

market

value/EBITDA

Enterprise 30 20 25

market value/

Free cash

flows
 Fall 2010

Application of valuation Ratios to Company W

Actual recent data for Average Ratios Indicated Enterprise

Company W Market Value
Revenues =$200
EBITDA = $10
Free cash flows = $5

Average=

Q.4 Write Reasons for International Mergers and Acquisitions? [10 Marks]

Q.5 Write the guide lines for successful mergers and acquisitions [10 Marks]
Activity?

Q.6 Write the reasons for joint ventures? [10 Marks]

 Fall 2010

Master of Business Administration- MBA Semester 3

MF0011 – Mergers and Acquisitions - 4 Credits
(Book ID: B1036)
Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Explain the differences between a flip- in and flip over poison pill? (10 Marks)

Q.2 What does an LBO accomplish in Mergers and Acquisitions? (10 Marks)

Q.3 From the standard point of shareholders, why are tracking stocks (10 Marks)

less valuable than stocks in a spin-off

Q.4 Why have alliances increased importance? (10 Marks)

Q.5 Summarize briefly what determines merger transaction is taxable? (10 Marks)

Q.6 What is the nature of strategy as an adaptive learning process. (10 Marks)