STORY BEHIND MERGER AND ACQUISITION :

MERGER : 1)When two or more company combines into one company. 2)Forms a new company. 3)In India merger is called amalgamation.

ACQUISITION : Act of acquiring effect control by one company over assets or management of another company without any combinations of company. Example : Godrej consumer care bought by Keyline brands.

SYNERGIES (Related to acquisition) : 1)Economies of scale. 2)Staff reduction. 3)Acquiring new technology. 4)Improved market reach. 5)Improved Industry visibility. 6)Taxation

TAKEOVER : A corporate action where an acquiring company makes a bid for an acquire.

TAKEOVER might be.. 1)Hostile Takeover – A takeover attempt that is strongly resisted by the targeted firm. 2)Friendly Takeover- Targets company management and board of directors agree to a merger or acquisition by another company.

WHY SHOULD FIRMS TAKEOVER : 1)To gain opportunities. 2)Take benefits from economic scales. 3)To gain more dominant position in the market. 4)To diversify its product range against competitor.

LATEST NEWS : 1)India targeted merger and acquisition deals reached dollar 21.7 billion this year.

ACQUISITION STRATEGIES : 1)It serves as a road map. 2)Describes the overall approach for acquiring.

KEY PRINCIPLES OF A SUCCESSFUL ACQUISITION STRATEGIES: 1)Acquisition is not an event but a process. 2)Companies have to make a long term commitment. 3)Understand probability.

LIVE EXAMPLE FOR ACQUISITION :

PRESENTED BY : Sagar Bhardwaj Ritika Arora Prachi Chaudhary Pooja Bana Akanksha Chauhan Nandita Bhati