Merger and Acquisition

What

is corporate restructuring?
Internal Method
By introducing new products and expending the capacity of existing
products

External Method
By acquisition of existing of business firm in the form of
acquisition, amalgamation, takeovers, consolidation.

Reason

behind corporate restructuring.

Importance

of corporate restructuring

merger,

Reasons/Importance

behind Restructuring
- to survive in market
- to increase market share
- to use latest technology
- to increase financial strength
- to overcome from insolvency
- to diversify their business
- to make presence worldwide

Pillars

of restructuring
Merger
Consolidation
Holding Company
Acquisition
Strategy of restructuring
Related Strategy
Not Related Strategy

PORTER FIVE FORCE MODEL

Merger

A combination of two or more company into a single company where one survive and other loose their
corporate existence.
Amalgamation

one or more company may merge to form a new company. It contemplates a state of things
under which two companies are so joined as to form a third entity.

Consolidation

it is mixing up of two companies to make them into a new one in which both the existing
firm loose their identity and ease to exist.
Acquisition

An act of acquiring effective control by one company over assets or management of another
company, without any combination of companies.
Takeover

it is nothing, just a control over management of companies by other. It in interchangeably

used by acquisition.

Industry

Life Cycle

Value

Introduction stage
Exploitation stage
Maturity stage
Decline stage

Creation in Mergers

Marketing synergy
Operating synergy
Investment synergy
Management synergy

Merger process

Formulation of vision
Growth
Competition
Pre-merger planning
Post merger process
Steps in strategic planning in Merger
Assessment of environment change
Evaluation of company capacity and limitation
Assessment of expectation of stakeholders
Formulation of vision, mission, goal
Planning and policy
Implementation
Evaluation and control

Five

Stage Model
Corporate strategy development
Organizing for acquisition
Deal structuring
Post acquisition integration
Post acquisition audit and organizational learning

Method of Financing Mergers

Cash offer
Share exchange ratio

Hybrid
A combination of cash and stock of purchasing entity or debt

Thanks