1. Mergers and Acquisitions in UK
DOMAIN DESCRIPTION :
Mergers and acquisitions (M&A) occur when one company takes control of another company. The
internationally agreed definition of a M&A deal is when one company gains more than 50% of the ordinary
shares (or voting rights) of the acquired company. On announcement of a proposed transaction, it may
appear that the transaction will give the purchasing company control of the purchased company, that is, a
share ownership of greater than 50%. If subsequent information contradicts this, the recorded values will
be amended or deleted.
ECOSYSTEM OF PROJECT : Investigation of the companies financials in UK
CHALLENGES :Unorganised data, or unaccomplished data
OPPORTUNITIES : Possible acquisition data required by firms
Duration of the Project : 5 weeks
2. ABOUT THE PROJECT
PROBLEM STATEMENT:
These are among the main reasons our M&A statistics can differ from those
reported in other sources. There can be a substantial time gap between the
point at which a deal is announced and when it is legally completed. In
addition, in some cases, announced M&A deals do not take place.
OBJECTIVE:
Asses the ability of the companies for possible acquisition
What role does the company play in shares?
3. DATA SET
• Primary Data Sources : The data provided by the firm
• Secondary Data Sources : Institute for Mergers, Acquisitions and
Alliances, Statista (websites)
• Historical Data : Annual Data(Quarterly)
• Nature of Data : Continuous/ Time series Data
4. DATA PRE-PROCESSING (EDA)
• TOOLS USED :
● MS-Excel (primary)
● Tableau (for additional learning)
• FRAMEWORK :
● Tracing the development
● Or possible mergers based on other companies acquisitions
6. METHODOLOGY/APPROACH
• TECHNIQUE USED :
● Acquisition premium is the difference between the price paid for a
target company in a merger or acquisition and the target’s assessed
market value.
● The acquisition premium is also known as goodwill and is maintained on
the acquirer’s balance sheet as an intangible asset, post-transaction.
9. FINDINGS, SUGGESTIONS, LIMITATIONS
• If the same analysis could be done primarily using R programming then the
results would have been obtained far more easier when compared to MS-
Excel.
10. LEARNING/CONTRIBUTION
• Learning 1 : How to analyse the required component, from the
industry point of view.
• Learning 2 : Suggestions must be balanced and should be given with
the underlying assumptions.
• Learning 3 : The requirement that is considered essential depends on
how the team/ the partner in the firms see it.
11. CONCLUSION
• Since 1985, more than 103’070 mergers & acquisitions transactions
have been announced with a known value of almost 5’688 bil. GBP.
• In 2017, over 3’916 deals with a total value of 326 bil. GBP have taken
place. While the number of M&A have decrease in most parts of the
world, this represents a growth in deals by +7.3% compared to 2016.
• Whereas the value has increased even more by +33%.
• The record of number of deals took place in 2000 where more than
5’100 transactions had been announced.
• The compound annual growth rate (CAGR) for the number of deals
from 1988 to 2015 was 1.85% while the value grew at 8.09%.
