Mergers, Aqcuisitions and Corporate Control June 2007.

Slides:

Advertisements

Similar presentations

© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Mergers and Acquisitions Chapter Twenty-Five.

Advertisements

Session 10: Mergers and Acquisitions C Corporate Finance Topics.

1 CHAPTER 25 Mergers, LBOs, Divestitures, and Holding Companies.

CORPORATE FINANCIAL THEORY Lecture 9. Megers & Acquisitions Three Areas of Study 1. Determining if a Merger creates value (then developing an offer price)

©2001 Prentice Hall Takeovers, Restructuring, and Corporate Governance, 3/e Weston Chapter The Takeover Process.

Chapter 29: Mergers and Acquisitions

MERGERS AND TAKEOVERS. Integration of companies e.g.  Oil-wells  Electricity generators  Car dealers  Gas (petrol) stations  Subcontractors (component.

Mergers and Acquisitions. M&A Market Market for Corporate Control Competition for control of firm assets Associated with Downsizing “It’s amazing that.

0 Merger versus Consolidation  Merger One firm is acquired by another One firm is acquired by another Acquiring firm retains name and acquired firm ceases.

MERGERS AND ACQUISITIONS Chapter 23. Chapter Outline The Legal Forms of Acquisitions Accounting for Acquisitions Gains from Acquisition The Cost of an.

Definition The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing.

Key Concepts and Skills

Copyright by Paradigm Publishing, Inc. INTRODUCTION TO BUSINESS CHAPTER 17 Expanding the Business.

Acquisition and Restructuring Strategies Hitt, Ireland, and Hoskisson

Mergers and Acquisitions

Merger and Acquisition Merger and Acquisition. What is corporate restructuring? Internal Method By introducing new products and expending the capacity.

MERGERS & ACQUISITIONS Corporate Finance 335 Supplemental Material.

MERGERS AND ACQUISITIONS Chapter 23.

Copyright 2007 – Biz/ed Mergers and Takeovers BTEC Business.

TAKEOVERS, MERGERS AND BUYOUTS

©2001 Prentice Hall Takeovers, Restructuring, and Corporate Governance, 3/e Weston Chapter Tax Planning Options.

5. P 0 =66.25; D 1 = 5.30 g =4% R e =? R e = 12%

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Mergers and Acquisitions Chapter 19.

Starting and Growing a Business

 Mergers Principles of Corporate Finance Brealey and Myers Sixth Edition Slides by Matthew Will Chapter 33 © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw.

Corporate Finance. Financial Role Financial Role Better Product at low Prices Better Product at low Prices High remunerations High remunerations Development.

Mergers and Acquisitions

Selecting the Proper Form of Business Ownership and Exploring Mergers and Acquisitions Chapter 4.

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

1 Mergers and Acquisitions 合併與購併. 2 What is Corporate Governance? Corporate Structure Principal Agent Relationship Stockholder Board of directors Mangers.

1 Finance 7311 Market for Corporate Control. 2 Terminology Target – Potential takeover candidate Acquirer (Bidder) – Firm doing the ‘taking over’ Merger.

課程 14: Mergers and Acquisitions - A Topic in Corporate Finance.

23-0 Merger versus Consolidation 23.1 Merger One firm is acquired by another Acquiring firm retains name and acquired firm ceases to exist Advantage –

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Mergers, Acquisitions, and Divestitures Chapter 29.

Bessemer Process The Bessemer process was the first inexpensive industrial process to convert iron into steel.

Mergers & Acquisitions. Financing capital: discuss opportunities & threats government subsidies bank loans issuing bonds issuing shares  acquisitions:

Value Investing: Activist Investing Aswath Damodaran.

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Corporate Finance 3e Ross, Thompson, Christensen, Westerfield and Jordan Slides.

Megers & Acquisitions Three Areas of Study 1. Determining if a Merger creates value (then developing an offer price) 2. Evaluating M&A offers in the market.

21- 1 McGraw Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved Fundamentals of Corporate Finance Sixth Edition Richard.

Chapter 40 Corporations: Mergers, Consolidations, Terminations Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution.

23-0 Synergy 23.4 The whole is worth more than the sum of the parts Some mergers create synergies because the firm can either cut costs or use the combined.

Chapter 31 Mergers Principles of Corporate Finance Tenth Edition

© 2012 McGraw-Hill Ryerson LimitedChapter There are four ways to change the management:  Proxy Contests: Outsiders compete with management for shareholders’

Business in Contemporary Society Methods of Growth.

Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 25 Mergers and Acquisitions.

合併與購併 Mergers and Acquisitions - A Topic in Corporate Finance.

Chapter 21 Fundamentals of Corporate Finance Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc.

In the News : : Rogers Microcell Deal Team Fusion.

8- 1 Outline The Market for Corporate Control 8.2 Sensible Motives for Mergers 8.3 Dubious Reasons for Mergers 8.4 Evaluating Mergers 8.5 Merger.

What is Financial Engineering? The creative application of financial technology to solve financial problems or create financial opportunities. This is.

Mergers--Background Mergers are capital budgeting problems, but:  Benefits like “strategic fits” hard to quantify  Accounting, tax, and regulatory issues.

MARGERS AND ACQUISITIONS. Internal growth comes about when a company invests in products it has developed, while external growth occurs when a company.

Chapter 31 Principles of Corporate Finance Tenth Edition Mergers Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies,

0 Mergers and Acquisitions Forms of Takeovers The Basic Forms of Acquisitions The Tax Forms of Acquisitions Accounting for Acquisitions Determining the.

Mergers and Takeovers Extra Notes for Economic Environment of Business.

TAKEOVERS MK, UNIT 21. MERGER OR TAKEOVER (ACQUISITION)? MERGER  two or more companies join together to form a larger company (mutual decision of two.

21-1 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Corporate Finance 4e, by Ross, Thompson, Christensen, Westerfield & Jordan.

MERGER AND ACQUISITION STRATEGY

TAKEOVERS, MERGERS AND BUYOUTS

Outline 8 The Market for Corporate Control

Mergers and Acquisitions

Understanding Business Strategy Concepts & Cases

Corporate Growth Growth from within

Mergers and Acquisitions

Mergers: An Introduction

MERGER AND ACQUISITION STRATEGY

Mergers, Aqcuisitions and Corporate Control

Chapter 21 Mergers & Divestitures

Corporate Financial Theory

Presentation transcript:

Mergers, Aqcuisitions and Corporate Control June 2007

Recent Mergers

Definition Merger: Combination of two firms into one, with the acquirer assuming assets and liabilities of the target firm.

The Merger Market Tools Used To Acquire Companies Proxy Contest Acquisition Leveraged Buy-Out Management Buy-Out Merger Tender Offer

Proxy Contest Takeover attempt in which outsiders compete with management for shareholders votes. Also called Proxy Fight Most proxy contests fail because outsiders use their own limited money while management can use the corporations funds and lines of communication with shareholders to defend itself

Acquicisiton Takeover of a firm by purchase of that firms common stock or assets The acquiring company runs the firm after merger Must have the approval of at least 50% of the shareholders of each firm

Leveraged Buy-Out Acquisition of the firm by a private group using substansial borrowed funds.

Management Buy-Out Acquisition of the firm by its own management in a leveraged buyout

Tender Offer Takeover attempt in which outsiders directly offer to buy the stock of the firms shareholders. The acquiring firm can bypass the target firms management altogether. If the tender offer is succesful, the buyer will get control and can replace the existing management

Sensible Reasons for Mergers Economies of Scale A larger firm may be able to reduce its per unit cost by using excess capacity or spreading fixed costs across more units. $ $ $ Reduces costs

Sensible Reasons for Mergers Economies of Vertical Integration –Control over suppliers may reduce costs. –Over integration can cause the opposite effect. Pre-integration (less efficient) Company S S S S S S S Post-integration (more efficient) Company S

Sensible Reasons for Mergers Combining Complementary Resources Merging may results in each firm filling in the missing pieces of their firm with pieces from the other firm. Firm A Firm B

Sensible Reasons for Mergers Mergers as a Use for Surplus Funds If your firm is in a mature industry with few, if any, positive NPV projects available, acquisition may be the best use of your funds.

Evaluating Mergers Questions –Is there an overall economic gain to the merger? –Do the terms of the merger make the company and its shareholders better off? ????

Evaluating Mergers Economic Gain