analysis of factor which affecting merger and acquisition

1. Presented by
Aman Jain
Awinash Ranjan

2.  Mergers is the combination of two companies
creation of a new entity.
 Assets and liabilities of the merging companies
gets transferred to the merged company
 Fusion between two or more firms
 E.g. tech Mahindra +sat yam= Mahindra sat
yam

3.  Acquisitions is one company taken over by the
other.
 One company take over assets or liabilities of
another company
 All companies loss their identity except one
company.
 A+B+C=(A or B or C)
 E.g. Tata steel + Corus

4.  Advantage
 The most common reason for firms to enter in
m &a is merge their power.
 Control the markets.
 Decrease risk using innovative technics.
 Become competitive firms.
 Utilize Tax benefits

5.  Disadvantage
 Loss of experience workers
 Employees of small merging companies
require re-skilling.
 Merger & acquisition reduce flexibility.
 Return of the share of the company cause
buyouts of the other company less than the
return of the sector.

6.  Increase in cost modifying the management

7.  Prepare for change- A merger or acquisition
requires new behaviors and ways of doing
things
 Communication - most, of all organizational
issues start with a lack of communication or
miscommunication.
 The merging of two cultures-Culture is the way
work gets done around here.

8.  processes- Identify which processes you need
in place, when, and where.
 Train employees on the new processes
 Leaders should lead, not manage.

9. Thank you