chap029 - CHAPTER 29 MERGERS AND ACQUISITIONS SLIDES 29.1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 29 MERGERS AND ACQUISITIONS SLIDES CHAPTER ORGANIZATION 29.1 The Basic Forms of Acquisitions Merger or Consolidation Acquisition of Stock Acquisition of Assets A Classification Scheme A Note about Takeovers 29.2 Synergy 29.1 Key Concepts and Skills 29.2 Chapter Outline 29.3 The Basic Forms of Acquisitions 29.4 Merger versus Consolidation 29.5 Acquisitions 29.6 Varieties of Takeovers 29.7 Synergy 29.8 Synergy 29.9 Sources of Synergy 29.10 Calculating Value 29.11 Two “Bad” Reasons for Mergers 29.12 A Cost to Stockholders from Reduction in Risk 29.13 The NPV of a Merger 29.14 Cash Acquisition 29.15 Stock Acquisition 29.16 Friendly vs. Hostile Takeovers 29.17 Defensive Tactics 29.18 More (Colorful) Terms 29.19 Do Mergers Add Value? 29.20 Do Mergers Add Value? 29.21 The Tax Forms of Acquisition 29.22 Accounting for Acquisitions 29.23 Going Private and Leveraged Buyouts 29.24 Divestitures 29.25 Quick Quiz
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A-81 CHAPTER 29 29.3 Sources of Synergy Revenue Enhancement Cost Reduction Tax Gains Reduced Capital Requirements 29.4 Two “Bad” Reasons for Mergers Earnings Growth Diversification 29.5 A Cost to Stockholders from Reduction in Risk The Base Case Both Firms Have Debt How Can Shareholders Reduce Their Losses from the Coinsurance Effect? 29.6 The NPV of a Merger Cash Common Stock Cash versus Common Stock 29.7 Friendly versus Hostile Takeovers 29.8 Defensive Tactics Deterring Takeovers before Being in Play Deterring a Takeover after the Company Is in Play 29.9 Do Mergers Add Value? Returns to Bidders Target Companies The Managers versus the Stockholders 29.10 The Tax Forms of Acquisitions 29.11 Accounting for Acquisitions 29.12 Going Private and Leveraged Buyouts 29.13 Divestitures Sale Spin-Off Carve-Out Tracking Stocks
Background image of page 2
CHAPTER 29 A-82 ANNOTATED CHAPTER OUTLINE Slide 29.0 Chapter 29 Title Slide Slide 29.1 Key Concepts and Skills Slide 29.2 Chapter Outline Video Note: See “Mergers and Acquisitions” for a look at the stock-for-stock merger between US Robotics and 3 Com. 29.1 The Basic Forms of Acquisitions Slide 29.3 The Basic Forms of Acquisition Bidder firm – the company making an offer to buy the stock or assets of another firm Target firm – the firm that is being sought Consideration – cash or securities offered in an acquisition or merger Lecture Tip: Overall, the massive wave of mergers and restructurings of the 1980s resulted in increased competitiveness, lower costs, and greater efficiency. A not-uncommon downside to the picture, however, is the job loss and dislocation associated with the redeployment of corporate assets. Unfortunately, popular press writers rarely grasp the true causes of such events. One person who does is Peter Lynch, the successful former manager of the Fidelity Magellan fund. Consider some of his statements. “It’s amazing that the basic cause of downsizing is so
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 19

chap029 - CHAPTER 29 MERGERS AND ACQUISITIONS SLIDES 29.1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online