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MERGERS
MERGERS
 A merger is an agreement that unites two existing
companies into one new company.
 Merger is commonly done to expand a company’s
reach, expand into new segments, or gain market
share.
 It is also done to increase shareholder value. Often,
during a merger, companies have a no-shop
clause to prevent purchases or mergers by additional
companies.
 A merger is the voluntary fusion of two companies
on broadly equal terms into one new legal entity.
 Its deals can be viewed from three different
perspectives:
o as corporate restructuring decision
o as a strategic decision
o as an investment decision.
KEY
TAKEAWAYS
TYPES OF MERGER
5 TYPES OF MERGER
1. Horizontal merger: A merger between companies that are in direct competition with
each other in terms of product lines and markets
2. Vertical merger: A merger between companies that are along the same supply chain
(e.g., a retail company in the auto parts industry merges with a company that
parts.)
3. Congeneric :A congeneric merger is also known as a Product Extension merger. In
this type, it is a combining of two or more companies that operate in the same
factors, such as technology, marketing, production processes, and research and
6
4. Product-extension merger: A merger between companies in the same
markets that sell different but related products or services
5. Conglomerate merger: A merger between companies in unrelated business
activities (e.g. A conglomerate merger was formed when The Walt Disney
American Broadcasting Company (ABC) in 1995
7
MOTIVES OF
MERGER
8
Crypto: investing & trading
9
THANK
YOU

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MERGERS

  • 2. MERGERS  A merger is an agreement that unites two existing companies into one new company.  Merger is commonly done to expand a company’s reach, expand into new segments, or gain market share.  It is also done to increase shareholder value. Often, during a merger, companies have a no-shop clause to prevent purchases or mergers by additional companies.
  • 3.  A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity.  Its deals can be viewed from three different perspectives: o as corporate restructuring decision o as a strategic decision o as an investment decision. KEY TAKEAWAYS
  • 5. 5 TYPES OF MERGER 1. Horizontal merger: A merger between companies that are in direct competition with each other in terms of product lines and markets 2. Vertical merger: A merger between companies that are along the same supply chain (e.g., a retail company in the auto parts industry merges with a company that parts.) 3. Congeneric :A congeneric merger is also known as a Product Extension merger. In this type, it is a combining of two or more companies that operate in the same factors, such as technology, marketing, production processes, and research and
  • 6. 6 4. Product-extension merger: A merger between companies in the same markets that sell different but related products or services 5. Conglomerate merger: A merger between companies in unrelated business activities (e.g. A conglomerate merger was formed when The Walt Disney American Broadcasting Company (ABC) in 1995
  • 9. 9