MERGERS

ACQUISITIONS

EXERCISES
 PART 1: MERGERS

 I. Definition

 A merger is a combination of two or more firms,

often comparable in size, in which all but one ceases
to exist legally. các hãng trong các quy trình của chuỗi cung ứng sẽ kết hợp
vs nhau

 Business combinations may also be defined

depending on whether the merging firms are in the
same (horizontal) or different industries
hỗn hợp
(conglomerate) and on their positions in the
corporate value chain (vertical).
 PART 1: MERGERS

 II. Types of Mergers

 Horizontal Mergers
 Vertical Mergers
 Conglomerate Mergers
 PART 1: MERGERS

 II. Types of Mergers

1. Horizontal Mergers
 Two companies making the same products combined, in the same
industry
 Horizontal integration: When a company gets bigger by acquiring
competitors in the same field of activity.
 Reasons for Horizontal Mergers
 To reduce competition
 To increase market share
 To acquire additional plants and equipment
 To achieve synergy and economies of scales
cộng hưởng
 PART 1: MERGERS
 II. Types of Mergers
2. Vertical Mergers
 A company either acquires or merges with another company in an
immediately-related stage of production and distribution.
 Vertical integration: Acquiring companies involved in other parts of the
supply chain, usually to make cost savings.
 Backward integration: Acquiring suppliers of raw materials or components.
 Forward integration: Buying distributor or retail outlets.
Reasons for Vertical Mergers
 To guarantee the supply and cost of raw material and components.
 To be closer to the customers, by cutting out the wholesaler for example
and dealing directly with the retail trade.
 PART 1: MERGERS

 II. Types of Mergers

3. Conglomerate Mergers
A company acquires another company in an entirely
different sphere. cty in different industry

The acquiring firm and the acquired firm are not related
to each other. The acquisition of a food products firm by
a computer firm would be considered a conglomerate
acquisition.
 Reasons for Conglomerate Mergers
 To move into a sector which promises greater growth or
profits.
 Parts
EXAMPLE
Manufacturer

Văn bản
Backward Prior Stage
Accessories Vertical of
Producer
Merger Production

Car Horizontal Merger Car

Manufacturer A Manufacturer B
Same Stage of
Production

Forward Later Stage

Vertical of
Cosmetics Merger Production
Manufacturer
Car
Showroom

TYPES OF MERGERS
 MERGERS: WHY & WHY NOT
REASONS FOR MERGERS PROBLEM WITH MERGERS

Increased market share Clash of corporate cultures

giúp viết essay

Economies of scale Increased business complexity

Costs of research and Employees may be resistant to

development change
Văn bản

Reduction in competition
 PART 2: ACQUISITIONS
sự mua lại

 I. Definition khi 1 cty tiếp quản 1 cty khác

An acquisition occurs when a company takes a

controlling interest in another firm, a legal subsidiary of
another firm, or selected assets of another firm, such
as a manufacturing facility. They may involve the
purchase of another firm’s assets or stock, with the
acquired firm continuing to exist as a legally owned
subsidiary.
 PART 2: ACQUISITIONS

 II. Types of Acquisitions

 Friendly Acquisitions
 Reverse Acquisitions
 Back flip Acquisitions
 Hostile Acquisitions Văn bản
 PART 2: ACQUISITIONS
 II. Types of Acquisitions
1. Friendly Acquisitions
 Acquisition of a target company by an acquirer/bidder with the consent or
approval of the management and board of directors of the target company.
2. Reverse Acquisitions thâu tóm ngược

 A smaller firm will acquire management control of a larger and/or longer-

established company and retain the name of the latter for the post-acquisition
combined
3. Back Flip Acquisitions cty mua lại lại trở thành cty con của cty bị mua (cty bị mua to hơn)

 The purchasing company becomes a subsidiary of the purchased

company
4. Hostile Acquisitions BQL ko tán thành

 unfriendly takeover attempt by a company or raider that is strongly resisted by

the management and the board of directors of the target firm.
ACQUISITIONS: WHY & WHY NOT
 PART 3: EXERCISES

Văn bản