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Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
Corporate governance in mergers & takeovers
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Corporate governance in mergers & takeovers

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its abt the role of corporate gov in M&A

its abt the role of corporate gov in M&A

Published in: Economy & Finance
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  • 1. Corporate Governance in Mergers & Takeovers<br />Presented by:<br />Ashish Makhija<br />
  • 2. Corporate Governance<br />Corporate Governance is application of<br />Best management practices<br />Compliance of law <br />Adherence to ethical standards<br />Distribution of wealth<br />Social responsibility for sustainable development of all stakeholders”.<br />
  • 3. Mergers & Acquisitions <br />1+1=3<br />This equation is the special alchemy of a merger or an acquisition. <br /><ul><li>The key principle is to create shareholder value over and above that of the sum of the two companies.
  • 4. Two companies together are more valuable than two separate companies.</li></ul>At least, that's the reasoning behind M&A. <br />
  • 5. Strong Companies will buy other Companies:<br />To create more competitive & cost efficient company.<br />To gain a greater market share.<br />To achieve greater efficiency.<br />
  • 6. Acquisition<br />Merger<br />
  • 7. How M & A allows for enhanced cost efficiencies of the new business<br />
  • 8. Corporate Governance and M&A<br />Corporate Governance = Top Management<br />Profits/Efficiency <br />
  • 9. Governance is a two way street<br />Corporation is responsible for its<br />stakeholders<br />Governance practices determine the process<br />by which the firm’s stakeholders monitor and control the firm.<br />
  • 10. Corporate Governance<br />Mechanisms can be broadly grouped into:<br />External mechanism<br />Capital markets<br />Product Markets<br />Managerial Labor market<br />Market for corporate control<br />Internal mechanism<br />The structure and role of the boards<br />The role of the CEO<br />The nature of employment practices<br />Incentive and reward measures<br />
  • 11. Most important mechanism<br />With an active market for corporate control, shareholders of poorly governed companies can<br />Sell their<br />shares<br />Replace the<br />incumbents<br />Restructure the firm<br />Lowering share prices in market<br />Incentive for outsiders to accumulate control rights<br />
  • 12. Good Governance after M&A<br />
  • 13. Human Rights<br />Labor Conditions<br />Support & Respect Internationally Proclaimed H.R<br /> The right to collective bargaining<br />Abolition of child labor<br /> Not complicit in H.R abuses<br />No Discrimination<br />
  • 14.
  • 15. Thank You<br />

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