2. PRESENTATION CONTENTS
WHAT IS THE DEFINITION
OF IM&A?
WHY DO COMPANIES MERGER ?
TYPE OF MERGERS
WHY INTERNATIONAL MERGERS
OFTEN FAIL?
2
EXAMPLE OF FAILURE
MERGERS
HOW TO SUCCESS IN
MERGERS?
MINI GAME: LUCKY NUMBER
2 3
4 5 6
4. MERGER
The combination of two
companies
The result is a new legal
entity that operates under
the banner of one name.
5. ACQUISITION
When one company
purchases another. The
company that’s been bought
doesn’t cease to exist or
change its name. Instead, it’s
just owned by the parent
company.
6. INTERNATIONAL MERGER & ACQUISITION (IM&A)
Terms used to describe a deal
that brings together two
companies belong to different
countries. The two are used
interchangeably but they have
different legal meanings
6
10. Why do companies merger?
Cost reduce Eliminate
competitor
Large talent
pool
11. Why do companies merger?
COST REDUCE
By buying out a supplier (vertical merger),
lets a company save on the margins the
supplier was previously adding to its costs.
12. Why do companies merger?
ELIMINATE COMPETITOR
Merger deals allow the acquirer to eliminate
future competition and gain a larger market
share.
13. Why do companies merger?
LARGE TALENT POOL
By combining business activities, overall
performance efficiency tends to increase,
due to the fact that each company takes
advantage of the other company's
strengths, talents.
18. WORKING HOURS
Asian companies
Working 8 hours per day
7:00 am – 5:00 pm
working long hours a sign of
commitment and achievement
European companies
Working 6 hours per day and
flexible time
8:30 am – 4:30 pm
extra hours a demonstration of
a lack of efficiency or the lack
of priority of family or personal
time.
19. Nokia is a long-standing
multinational corporation
headquartered in Espoo,
Finland, established in 1865
20. Microsoft is an American multinational corporation
headquartered in Redmond, Washington
21.
22.
23. In 2013, the market for tablets, smartphones and handheld
devices is gradually emerging as a new trend in the future.
24. However, all calculations did not go as
expected when Nokia Corporation could not
keep up with the R&D segment compared to
other Smartphone development giants..
25.
26. Choosing more than
one target business
Purpose
+ Getting the accurate information about
targeted enterprise.
+ Having many options and favorable
conditions for M&A.
Method
+ Cooperating with finacial companies (such
as securities companies–công ty chứng
khoán, investment funds-quỹ đầu tư) is the
most effective way.
+Investigating their annual stock index,
revenue,…
26
Securities companies in VN
Investment funds in VN
27. Studying and understanding the
demand and psychology of customers of
the countries or companies which you
aim to.
27