This presentation is all about the Merger and Acquisitions, it includes many Indian examples of Mergers and Acquisitions. it also provide you detailed information aboubt == ="22

1. MERGERS AND ACQUISITION
Made by: Ankita Singh

2. MERGERS
 Merger is defined as combination of two or more
companies into a single company where one
survives and the lose their corporate existence.
 All assets , liabilities, and stock of one company
stand transferred to transferee company in
consideration of payment in the form of:
1) Equity shares in the transferee company
2) Debentures in the transferee company
3) Cash,
4) A Mix of above modes
o Example: Company A+ Company B = Company C

3. TYPES OF MERGERS
1. Horizontal mergers
 A horizontal merger involves two firms opertating
and competing in the same kind of bussiness
activity.
 Textiles firms mergers raw materials firm.
 Examples- Exxon – Mobil
2. Vertical merger
 Vertical merger occur between firms in different
stages of production opertions
 Examples- Helene Curtis and unilever

4. 3. Conglomerate merger
 Conglomerate merger involve firms engaged in
unrelated types of business activity.
 Examples-General electric buying NBC television.
4.Concentric mergers
 Based on specific management function where as
the conglomerate mergers are based on general
management function.
 Examples- Citigroup (principally a bank) buying
Salomon smith barney (an investment banker/stock
brokerage operations.

7. BENEFITS OF MERGERS
 Diversification of product and services offerings.
 Increase in plan capacity
 Larger market share
 Utilization of operational expertise and research
and development.
 Reduction of financial risk.

23. C0MPETITIVE ADVANTAGE
 Competitive advantage is an advantage that a firm
has over its competitors, allowing it to generate
greater sales or margins and retain more customers
than its competition. There can be many types of
competitive advantages included firms structure,
product offering, distribution network and customer
support.

24. METHODS TO MAINTAIN COMPETITIVE
ADVANTAGE
 Collaborate
Whether we like it or not customer are in the box
seat. They choose to visit your website, view your
add or open your email and they can click delete ,
navigate to anther page or change the channel in a
nano second. You are uniquely placed to
collaborate with your customer.
o Cost leadership
cost leadership is often used by the firm to gain
competitive advantage. Cost leadership as an
advantage occurs when a business is able to offer
the same quality product as its compititor bt at
lower price.

25.  Differentiation
differentiation is a strategy that business often used to
set themselves apart from its competitors. In this
strategy low cost is only one of many possible that may
set aside business from others. Business that
differentiate themselves typically look for one or more
marketable attributes that they have that can set apart
from their competitor.
o Defensive strategy
another way for business to gain competitive advantage
is to utilise defensive strategy. The advantage gained by
this type of strategy is that it allows the business to
further distance itself from its competition by, in some
sense maintaining a competitive advantage it has gain.

26.  Alliances
competitive advantage can also be gain by
business that seek strategic alliance with other
business in relative industry or within the same
industry. Business have to be careful not to cross a
line between a alliances and collusion.