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INTRODUCTION
Mergers and acquisitions are transactions in
which the ownership of companies, other
business organizations or their operating units
are transferred or combined. As an aspect of
strategic management, M&A can allow
enterprises to grow, shrink, change the
nature of their business or improve their
competitive position
Acquisitions
barriers
ACQUISITION
1 Buying one organization
by another
2 It can be friendly
takeover or hostile
takeover
3 Acquisition is less
expensive than merger
4 Buyers cannot raise their
enough capital
5 It is faster and easier
transaction
6 The acquirer does not
experience the dilution of
ownership
TYPES OF MERGRS
I.
Vertical mergers
II.
Conglomerate mergers
III.
Power Politics:
Randall S. Schuler, Susan E. Jackso??? (2001) observed that there is a
tendency to assume that power disputes are more common in the case of
acquisitions than
mergers, there is no such thing as a merger of equals.
Business valuation
The five most common ways to value a
business are:
* asset valuation
* historical earnings valuation,
* future maintainable earnings
valuation,
* relative valuation (comparable
company
and comparable
transactions
* discounted cash flow (DCF) valuation
Conclusion
As per my final and ultimate conclusion, yes, merger
of all these companies have created value to the
shareholders of the target company and acquired
company.
BIBLIOGRAPHY
www.wikipedia.com
www.google.com
www.ourfinanacebook.com
Thank
you.......!