1. BY:-
ARCHISMAN DASH
EN NO. 16BSP0455GG
MERGERS AND ACQUISITIONS

2. WHAT ARE MERGERS AND
ACQUISITIONS?
Mergers and Acquisitions (M&A) are potential
strategies for ensuring the accelerated growth of a
business or a company.

3. REASONS FOR M&A?
Synergy
o Operating Synergy
o Financial Synergy
Acquiring New Technology
Improved Profitability
Acquiring A Competency
Entry Into New Markets
Access To Funds
Tax Benefits

4. WHAT ARE MERGERS?
Combination Of Two Companies Into One Large Company
Involves Stock Swap Or Cash Payment To The Target
Assets And Liability Are Merged
Combining Companies Are Dissolved And New Entity
Operates
Has Two Forms;
 Amalgamation (A+B=C)
 Absorption (A+B=A)

5. TYPES OF MERGERS
Conglomerate
Horizontal
Market Extension
Vertical
Product Extension

6. WHAT IS ACQUISITION?
 Corporate Action In Which A Company Buys Most, If Not
All, Of The Target Company's Ownership Stakes
 It's A Growth Strategy, Beneficial In Taking Over Existing
Firm Operations
 Are Paid Either In Cash Or Acquiring Company's Stock Or
Both
 It's Also Referred As 'Takeover'

7. TYPES OF ACQUISITIONS
Friendly Acquisition
Reverse Acquisition
Back Flip Acquisition
Hostile Acquisition

8. PICTORIAL REPRESENTATION OF M&A

9. REASONS OF FAILURE OF
M&A?
Unrealistic Price Paid For A Target
Difficulties In Cultural Integration
Overstated Synergies
Integration Difficulties
Poor Business Fit
Inadequate Due Diligence
High Leverage
Boardroom Split
Regulatory Issues
Human Resources Issues

10. EXAMPLES OF M&A'S
The $28.1 Billion Acquisition Of Linkedin By Microsoft
The $16.6 Billion Deal For Tyco International By Johnson
Controls
The $30.6 Billion Bid For St Jude Medical By Abbott
Laboratories
The $32 Billion Deal Between Shire And Baxalta
Sherwin-williams Takeover Of Valspar For $11.3 In March
The Merger Between Northstar Asset Management Group, Its
Former Parent Northstar Realty Finance, And Colony Capital For
$11.3 Billion In June
The $11.4 Billion Acquisition Of Fortis By ITC Holdings
Announced In February
Great Plains Energy’s Bid For Westar Energy Worth $12.2
Billion
The $12.4 Billion Acquisition Of ADT By Protection 1