Day 8 The urge to merge

Day 8 The urge to merge - Click to edit Master subtitle...

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9/8/10 Click to edit Master subtitle style The urge to merge
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9/8/10 I used to read the New York Times Wedding
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9/8/10 What IS a Merger A “combination of two or more commercial companies” The phrase mergers and acquisitions (abbreviated ) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, Source: Wikipedia.com
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9/8/10 Types of Mergers Horizontal – same line of business Vertical – suppliers or distributors Congeneric – related enterprises but not same product Conglomerate – unrelated enterprises
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9/8/10 Reasons for Mergers and Acquisitions (Brigham p 896) Synergy, including Tax Considerations Purchase Assets below replacement cost Diversification Managers’ Personal Incentives Break-up Value AND in 2008
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9/8/10 Synergy 2+2 = 5+ Operating economies Financial economies Tax effects Differential management efficiency Increased market power – but reducing competition is illegal
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Day 8 The urge to merge - Click to edit Master subtitle...

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