Busch Inbev Merger

Busch Inbev Merger
In May of 2016, The European Commission signed off on Anheuser– Busch InBev's more than $100
billion merger with SABMiller after the companies agreed to sell SABMiller's premium brands in
Europe and some other European operations (Bray). The merging of SABMiller and AB Inbev
create the worlds largest beer company accounting for approximately 30% of beer industry sales
(Bray). Margrethe Vestager, the commissioner in charge of European competition policy defended
the decision to allow the merger to go through by stating "Today's decision will ensure that
competition is not weakened in these markets and that E.U. consumers are not worse
off....Europeans buy around 125 billion euros of beer every year, so even a relatively small price
increase could cause considerable harm to consumers" (Bray).
The European Commission believed that allowing the merger was in the best interest of both
consumers and for the beer market itself. I wholeheartedly disagree with that decision.
Consolidating firms only decreases competition. John Colley, associate dean at Warwick Business
School agrees, "Generally speaking, as industries consolidate down to fewer players, prices increase
because there is less competition... You tend to end up with less choice of products too" (Thomas).
There are four major European beer brewers and with this merger two of the largest are now
consolidated. The consolidation "significantly increased the number of national markets where the
merged entity and the two
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Tyco Merger
What is your opinion of a merger? If you say and think a merger is a bad thing then you are not
alone. Recently, "mergers were given a big thumbs down in a poll given to Americans and
Canadians." The definition of a merger is "a combination of two or more businesses to form a single
firm." The cons of mergers greatly outnumber the pros because as companies get larger and larger,
people lose jobs, monopolies form, and consumers pay higher prices, resulting in a less competitive
and, therefore, less opportune business market.
Is bigger really better? Big might be sometimes better, but companies, corporations and monopolies
can get too big. "Some merged companies become so huge that they lose focus, gain overhead and
increase their expenses ... Show more content on Helpwriting.net ...
Then we have Tyco International Ltd. that merged with Binge/Purge. Such a shame that Tyco's
newest acquisition had "questions of fraud, people undermining decisions, and bad accounting
practices." My last example is that of AutoNation. AutoNation is a company recently formed that
deals with "pre–owned" or used cars. It has "shut down 23 of its mega stores, and laid off 1,800
employees just because they overproduced the unwanted plain vanilla models of cars". The
company was obviously losing sight of something important, the demand for that color of car.
Big corporations are less than perfect. As a business gets bigger, the more cons may surface from
day to day business operations. As the company gets bigger, one find oneself "having to manage
unrelated businesses, losing strategic focus, dealing with agency costs, administrative costs, having
unbalanced capacities, and ultimately one has a lack of control." Big companies treat consumers
different by than those of a small, competitive business. Big companies try to take over and "exploit
the economy of the host nation by paying low wages to workers, by exporting scarce resources, or
by adversely interfering with the development of local business." It just seems that the greater mass
achieved by the company the more it loses sight of what is important. Another big problem with big
companies is that they "are so large and wealthy, they may influence the political life of a host
nation." As

Transformer Merger
MERGER
The combining of two or more companies, generally by offering the stockholders of one company
securities in the acquiring company in exchange for the surrender of their stock.
BREAKING DOWN 'MERGER'
Basically, when two companies become one. This decision is usually mutual between both firms.
several factors are influencing merger and acquisition activity. Achieving economies of scale,
broadening geographic market coverage, and more effectively competing have helped to create a
flurry of acquisitions in the marketplace. In addition, the search for cost reductions through,
particularly in the mature market conditions we have in the industry, are being used to offset
companies' inability to grow profit through price increases.
Merger of partnerships. (Effective until January 1, 2016.)
(1) One or more domestic partnerships may merge with one or more domestic ... Show more content
on Helpwriting.net ...
The strategy is a way to bypass the time and resources entailed in achieving organic growth. With
mergers and acquisitions, growth occurs by finding complementary alliances among the
competition. Although an ample upside is associated with a successful merger or acquisition,
potential risks dictate prudence before companies tie the knot.
Strategic Fit
One of the key concepts associated with mergers and acquisitions is strategic fit. Companies
operating in the same sector must have some degree of alignment in terms of competitive situation,
strategy, organizational culture and leadership style. Greater overlap of these elements between
organizations creates a more conducive environment for merging two separate companies into a
single entity. Although many factors play into these alignments, company leadership spearheads
these elements and, therefore, contributes the greatest influence among them.
Market Share and

Essay Mergers and Acquisitions
Nowadays mergers and acquisitions are regarded as a key strategic option for the organisations all
over the world. According to Huang and Kleiner (2004) mergers and acquisitions have become the
principal means by which companies have the opportunity to grow revenues due to factors such as
gloabalisation, rapid technological changes, a long–term bull market and strategic barriers to
growth. Porter and Singh (2010) admit that mergers and acquisitions play an important role in
reallocation of resources in an economy. Despite the huge increase of corporate mergers and
acquisitions during the last decades many surveys show that the majority of them fail (Nguyen and
Kleiner 2003).The purpose of this essay is to give a brief overview of mergers ... Show more content
on Helpwriting.net ...
Roll (1986) states that the hubris model indicates that over confident managers make wrong
estimations about the value of the potential targets and as a consequence they decrease the value of
their shareholders' wealth when the acquisition is completed.
The main objective of mergers and acquisitions is to increase market share and shareholder value by
decreasing costs and implementing improved services (Nguyen and Kleiner 2003). Each
organisation in this process targets the strengths and the capabilities of the other in order to improve
its position in the market. Stallworthy and Kharbanda (1988) argue that one of the main objectives
of mergers and acquisitions is the acquirer's diversification with minimum cost in order to be
protected and be restructured in a possible crisis. Keenan and White (1982) mention that firms seek
for synergies in order to diversify and reduce the possibility of bankruptcy, achieve a better fit
between the talents of corporate managers and the resources at their disposals and simultaneously
acquire a bigger market share. Moreover Moon (1976) remarks that many firms choose to spread the
risks by branching out into other unrelated industries or trades.
Furthermore, mergers and acquisitions give the opportunity to buyers to grow faster, to achieve
larger scales of economies and profitability with an existed market share, to eliminate a competitor
by acquiring it and complete effective

Mergers and Acquisition
Do Mergers and Acquisitions always bring desired results? Individual Assignment
[pic] [pic] [pic]
Student Name: Mandeep Kaur (10211855) Module Leader: Simeon Scott Course: MA– IBM
Introduction: For my research topic I have chosen this topic to analyse and to investigate about the
mergers and acquisitions of organisations. Do these mergers and acquisitions always bring desired
results or not. Mergers and acquisitions are very common and occur everywhere i.e. in
organizations, administrative units and businesses in all industries and of all sizes specially in
banking sector and in pharmaceutical ... Show more content on Helpwriting.net ...
For example when a manufacture company buy or merge with another component maker company,
called a vertical merge (Stacey, 1970:33).
Literature review: Different tools and techniques in the forms of ratio analysis etc. are used by
scholars to identify the effects of mergers and acquisitions and interestingly different results are
there in the market. Performance can be measured on the basis of long–term and short–term time
period; long–term performance can be checked on the basis of profitability of the firm. Fundamental
analysis of the company with the help of ratio analysis (kumar & bansal, 2008)
Motives for mergers and acquisitions: in economic terms a merger or acquisition will only be
worthwhile if combining the two businesses will lead to gains which would not arise if the two
business stayed apart. In financial terms, the present value of bidding business plus, the present
value of target business plus, a gain in terms of increased income or reduced expenses from
combining (Samuels, wilikes and brayshaw, 1996).
Acquisitions as transformation category:
As compared with other types of transformation in a company, the characteristics of an acquisition is
that it can include almost all other transformation categories.The employees in the acquired
organization must go through a number of technical changes: new frame of reference, new
organization, new business model, new rules and processes, different working conditions, privileges,
etc. It

Merger : Merger Or Acquisition
The present case can be framed such as merger or acquisition. "A merger or acquisition is a
combination of two companies where one corporation is completely absorbed by another
corporation" (legal–dictionary, n.d.). There are different types of mergers: Horizontal merger: when
a company takes over another which offers the same or similar service or product. Vertical merger: it
is the combination of two companies which are in the same value chain of producing the same good
and service, but in a different stage of production. Concentric merger: when the firms which merger
serve the same customer in a particular industry, but they do not offer the same products or services
(entrepreneurial, n.d.) Our topic is a clear example of concentric merger, because the two companies
offer different products (bricks and ceramic sanitary ware) to the same customer, the construction
market. Other aspect that is worthy of analysis is what motive a company to merger. According to
Renaud (n.d.), some of the reasons for mergers are: Synergy: the idea that by combining business
activities, performance will increase and costs will decrease. Diversification: some companies merge
to sharpen focus with companies which have deeper market penetration in a key area of operation.
Growth: acquiring a company is an easy way to grow market Increase Supply–Chain Pricing Power:
the aim is to eliminate a level of cost (vertical merger) Eliminate Competition Probably the two
reasons that are

Cineworld Mergers
Abstract A merger is defined as the act of uniting two companies existing separately into one new
company. Mergers re most common among companies that wish to increase their market share,
expand their reach, or even tap into new market segments. This report focuses on the merger that
took place between Cineworld Group and City Screen Limited. The report includes an investigation
that is carried out by the competition commission aimed at determining whether the merger situation
created by the two parties qualified to be relevant or not. It also seeks to investigate the effects of the
transaction on the competition in the market. Introduction Cineworld Group plc (Cineworld) is one
of the largest operators of cinemas in the United Kingdom. The ... Show more content on
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Instead, the services offered by both parties tend to overlap. The competition commission also
carried out an investigation on the effects the merger had on competition. According to the
commission, in areas where both parties had cinemas, the elimination of one competitor would give
room to increase prices or reduction in the quality of service. Expansion plans by any individual
party would also be affected s a result of the current common ownership of both the business and the
competitor. Also, the merger gave the newly formed company the power to offer programming
services, which it could use to distort the completion. The competition commission also carried out
further investigation so as to determine any evidence that would relate to the above theories. The
commission focused on local areas in the country where both parties had cinemas. Analytical tools
were used to determine the competition that existed between the two parties before the merger, and
also, the competition from other film exhibition service providers. The commission also aimed at
finding out whether the timely entry of a new competitor would have any effect on the market.
Findings showed that the merger between Cineworld and City Screen would result in a substantial
lessening of competition (SLC) in the

Mergers and Acquisitions
When we talk about acquisitions or takeovers, we are talking about a number of different
transactions. These transactions can range from one firm merging with another firm to create a new
firm to managers of a firm acquiring the firm from its stockholders and creating a private firm. We
begin this section by looking at the different forms taken by takeovers.
1. TAKEOVER
A corporate action where an acquiring company makes a bid for an acquire. If the target company is
publicly traded, the acquiring company will make an offer for the outstanding shares.
There are three types of takeovers:
1.1 Friendly takeovers
A "friendly takeover" is an acquisition which is approved by the management. Before a bidder
makes an offer for another ... Show more content on Helpwriting.net ...
In a friendly acquisition, the managers of the target firm welcome the acquisition and, in some cases,
seek it out. In a hostile acquisition, the target firm's management does not want to be acquired. The
acquiring firm offers a price higher than the target firm's market price prior to the acquisition and
invites stockholders in the target firm to tender their shares for the price.
The difference between the acquisition price and the market price prior to the acquisition is called
the acquisition premium. The acquisition price is the one that will be paid by the acquiring firm for
each of the target firm's shares. This price is usually based upon negotiations between the acquiring
firm and the target firm's managers.
For instance, in 1991, AT&T initially offered to buy NCR for $ 80 per share, a premium of $ 25 over
the stock price at the time of the offer. AT&T ultimately paid $ 110 per share to complete the
acquisition. There is other comparison that can be made between the price paid on the acquisition
and the accounting book value of the equity in the firm being acquired.
Depending upon how the acquisition is accounted for, this difference will be recorded as goodwill
on the acquiring firm's books or not be recorded at all.
Initially offered to buy: $80 per share Premium: $25 per share
Paid: $110 per share
6
There are four basic and not necessarily sequential steps, in acquiring

Company Mergers
Company mergers and the effect on employees and consumers. Context: · Employees · Management
· Consumers Direction: · On–line research (On–line Magazines, News Groups) · Human Resources
Why the topic is important: · Mergers have affected our group, and it is a growing trend in the
American businesses today. Relevant Terms: Merger A merger is achieved when a company
purchases the property of another firm, thus absorbing them into one corporate structure that retains
its original identity. Consumer Consumers are everyday people who buy goods for personal use.
Consumers have the right to question object and boycott companies who are not in their best
interest. Culture Company culture is the DNA of an organization, not ... Show more content on
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· What direction is the marketing effort taking, how much is being spent, and are there any
benchmarks? Is a merger still a merger when the respective sizes of the firms are ninety percent and
ten percent? Is it just an acquisition, where the ten percent should quietly accept the culture of the
ninety percent? Whether you call it a merger or an acquisition, each firm has its own culture, and the
smaller entity, if substantially different from the one around it, will continue to survive as a
discordant subculture, unless an effort is made to integrate all the players. Frequent mergers leave
little opportunity for establishing a value–added firm culture. The surviving firm's culture is
absorption, which sooner or later like overeating will probably be self–destructive. If we truly
believe that people are our most important asset we need to treat them that way. A merger or an
acquisition gives us an opportunity to do well by our people by being honest with them, keeping
them in the loop, and giving them all the information we can as early as we can. Get people in both
the merging company and the company being absorbed together as early as possible. Discuss the
issues that were the perceived potential benefits behind the merger openly and frankly. If Company
A's strength is sales and they are absorbing Company B in part because of B's distribution
capabilities, make sure A's distribution people know to listen to B's distribution people and B's sales
force

Merger Analysis
Merger: Valuation Process and Evaluation of Financial Performance in case of United Insurance
Company and Shama Plc By: Jemaneh Bayou January 2008 Advisor: Abebe Yitayew (Asst.
Professor.) A PROJECT PAPER SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF
ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENTS OF THE REQUIREMENTS FOR
THE DEGREE OF MASTER OF SCIENCE IN ACCOUNTING AND FINANCE ADDIS
ABABA UNIVERSITY SCHOOOL OF GRADUATE STUDIES Faculty of Business & Economics
Department of Accounting & Finance Merger: Valuation Process and Evaluation of Financial
Performance in case of United Insurance Company and Shama Plc By Jemaneh Bayou Hailu
January 2008 Approved by board of examiners Asst. Professor Abebe Yitayew ... Show more
content on Helpwriting.net ...
1 1. INTRODUCTION ............................................................................................................. 1 1.1
Background of the Study ...................................................................................... 1 1.2 Historical
Background of the Companies .......................................................... 3 1.3. Statement of the Problem
................................................................................. 5 1.4. The Objective of the Study
................................................................................ 7 1.4.1 General Objective
......................................................................................... 7 1.4.2 Specific Objectives
........................................................................................ 7 1.5. Significance of the
Study.................................................................................... 8 1.6. Methodology
........................................................................................................... 8 1.6.1 Data Collection
.................................................................................................. 8 1.6.2 Data Analysis
.................................................................................................. 9 1.7. Scope and Limitations
....................................................................................... 10 1.8. Organization of the

Notes On Mergers And Acquisitions
Table 1–1 shows the summary of mergers and acquisitions activities in Malaysia for the year of
2011 and 2012. Based on the table, there is an increment of transaction value (in US$m) for both
announced and completed mergers and acquisitions in Malaysia. The value of announced mergers
and acquisition increase 20.14% from year 2011 to 2012. While the value of completed mergers and
acquisitions in Malaysia increase about 48% from year 2011 to 2012.
Based on table 1–1, although not all the announced mergers and acquisitions are completed during a
year, the percentage of completed mergers and announcements for both years 2011 and 2012 is more
than 70% (2011 = 70.32% and 2012 = 72.77%). This is a good indication to a developing country
like Malaysia because more than 70% of announced mergers and acquisitions are completed during
a year. The increasing value of mergers and acquisitions over the years has motivated this study to
examine whether the mergers and acquisitions activities does provide a fair return to the acquirers
companies especially in term of the share prices changes. Therefore, it is important to examine
whether there is any abnormal returns around the announcement period. However, if the market is
efficient, we should expect the impact of mergers and acquisitions only take place on the day of
announcement while the other days around the event windows will not generate significance
different in abnormal returns.
1.2 Abnormal Returns from Mergers and

Recent Mergers or Acquisitions
Recent Mergers or Acquisitions
A "merger" or "merger of equals" is often financed by an all stock deal (a stock swap). An all stock
deal occurs when all of the owners of the outstanding stock of either company get the same amount
(in value) of stock in the new combined company. A merger adds value only if the two companies
are worth more together than apart (Wikipedia, Free Encyclopedia, 2006).
An acquisition (of un–equals, one large buying one small) can involve a cash and debt combination,
or just cash, or a combination of cash and stock of the purchasing entity, or just stock (Wikipedia,
Free Encyclopedia, 2006).
Such actions are commonly voluntary and involve stock swap or cash payment to the target. Stock
swap is often used as it ... Show more content on Helpwriting.net ...
28, 2005, this exchange ratio equals $18.41 per share. In addition, at the time of closing, AT&T will
pay its shareholders a special dividend of $1.30 per share. The stock consideration in the transaction
is expected to be tax–free to AT&T shareholders (SBC News Room, October 27, 2005). Strategy to
merge Verizon and MCI merger is to be a customer–focused leader in consumer broadband and
video, as well as business and government services, in both the landline and wireless environments.
They believe that their superior networks are the basis for innovation and competitive advantage in
communications. The combination of our world–class wireless and broadband access networks with
the leading global IP (Internet protocol) backbone will allow us to deliver the highest quality end–
to–end experience for our customers. Following the merger, Verizon, which continues to be based in
New York, has approximately $90 billion in annual total consolidated operating revenues and
approximately 250,000 employees, serving customers in 150 countries (Verizon News Release,
January 6, 2006). Under terms of the merger agreement, MCI shareholders will receive 0.5743
shares of Verizon and cash for each of their MCI shares. Verizon elected to make a supplemental
cash payment of $2.738 per MCI share (or $779 million in the aggregate), rather than issue
additional shares of Verizon, so that the merger consideration was equal to at least $20.40 per share
of MCI. The

Vertical Merger Essay
1. Horizontal Mergers: Horizontal mergers happen when a company merges or takes over another
company that offers the same or similar product lines and services to the final consumers, which
means that it is in the same industry and at the same stage of production. Companies, in this case,
are usually direct competitors. For example, if a company producing cell phones merges with
another company in the industry that produces cell phones, this would be termed as horizontal
merger. The benefit of this kind of merger is that it eliminates competition, which helps the company
to increase its market share, revenues and profits. Moreover, it also offers economies of scale due to
increase in size as average cost decline due to higher production volume. These kinds of merger also
encourage cost efficiency, since redundant and wasteful activities are removed from the operations
i.e. various administrative departments or departments such as advertising, purchasing and
marketing.
2. ... Show more content on Helpwriting.net ...
Vertical Mergers: A vertical merger is done with an aim to combine two companies that are in the
same value chain of producing the same good and service, but the only difference is the stage of
production at which they are operating. For example, if a clothing store takes over a textile factory,
this would be termed as vertical merger, since the industry is same, i.e. clothing, but the stage of
production is different: one firm is works in territory sector, while the other works in secondary
sector. These kinds of merger are usually undertaken to secure supply of essential goods, and avoid
disruption in supply, since in the case of our example, the clothing store would be rest assured that
clothes will be provided by the textile factory. It is also done to restrict supply to competitors, hence
a greater market share, revenues and profits. Vertical mergers also offer cost saving and a higher
margin of profit, since manufacturer's share is

A Report On Mergers And Acquisitions
Mergers and Acquisitions have always been considered as a .......................... and ever since the first
merger in Nigeria in 1980, Merger and Acquisitions have occurred in most sectors of Nigerias
economy. In 2004, the Central Bank of Nigeria in fulfillment of its mandate to Promote and
maintain of monetary stability and a sound and efficient financial system in Nigeria rolled out a 13
point rolled out a 13–point reform agenda aimed at consolidating the banking sector and preventing
the occurrence of systemic distress. The most important points of this reform package were first that,
the minimum capitalization of banks be increased from 2 billion naira to 25 billion naira before the
31st of December 2005 and second, that this aim was to be achieved ... Show more content on
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For this reason, many countries are moving towards consolidating their banking system and Nigeria
cannot be an exception."(pg 10) The CBN however noted that there would be some challenges to
this programme and they are enumerated below: o Ensuring that provision of adequate safety nets
and compensation packages are made by the merging banks to meliorate for potential job losses
arising from mergers; o Appropriate mechanisms for protecting possible disenfranchisement of
small depositors who may not be elcomed by the emerging mega–banks; o The regulatory
authorities, especially SEC, would need to be empowered to be active in the market to prevent hreat
to competitive market and monopolistic tendencies of mega–banks from consolidation. Also, the
NDIC and CBN would need to constantly monitor the activities and performance of the emerging
mega–banks to prevent bank distress and failures. (pg 14)
To address some of the issues highlighted by the CBN above, the Investment and Securities Act
2007 was enacted to replace the Investment and Securities Act 1999 and the some of the sections of
the Companies and Allied Matters Act applicable to Mergers and Acquisitions. The Investment and
Securities Act has however been criticized for being very
However in 2010, due to the global financial crisis and

The Strategy Of Mergers And Acquisition
2.1 Strategy of Mergers & Acquisition Mergers & Acquisitions refers to corporate reorganisations
that transfer an organisation's ownership from one firm, the target, to the other known as the
acquirer (Motis, 2007). The difference between a merger and an acquisition is that the former is a
combination of two companies, whereas acquisition is when one company completely takeover
another (Gupta, 2013. M&A can benefit companies in various ways and the main advantage is all
the potential economies of scale that can arise from the deal (Pettinger, 2012). For example, the firm
benefits from cost savings that are associated with marketing and technology. Furthermore, M&A
deals provide firms access to a wider customer base and increase their ... Show more content on
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Also, employees can be made redundant as the acquiring company can shut shown under–
performing departments (eFinanceManagement, 2015). Section 2 2.1 Mergers & Acquisition in Oil
& Gas Industry Organisations see M&A as a fast and efficient way to expand into new markets and
incorporate new technologies (Schuler & Jackson, 2001). M&A have a high level of success,
nonetheless, failures in an M&A deals are also inevitable. According to Schuler & Jackson (2001), a
substantial number of financial and market factors can actually be traced to the negligence of human
resource issues and activities. Gupta (2013) mentioned the different motives organisations have for
pursuing a merger and acquisition deal are strategic, financial and organisational motives.
Conversely, Wheeler et al (2014) go to state the trends for an M&A deal are based on factors such as
oil prices, capital availability, oil acquisitions, or strong valuation. And with the current oil price,
chief economists at Charles Stanley, Jeremy Batstone–Carr, "warns that further price falls could
really start hurting the big firms" (West, 2016), implicating a negative effect on oil companies.
Wheeler et al (2014) state M&A activities declined in the industry during 2013, however, the
industry has continued to see many deals occur afterwards (Ambrose, 2016). Additionally, as

Mergers Case Study
The most obvious trend for these 26 mergers is that banks with asset size under the threshold of
100MM are essentially going extinct. In the past five years, ten of these said banks have been
purchased. While ten have been purchased since 2012, only 19 remain as of 7/17, 11 of these
remaining banks being state regulated. This trend is generated by a larger underlying problem, these
banks seemingly face immense struggles to make a profit. Of the ten banks closed, only two were
above average in earnings compared to the entire group of purchased banks, and even worse, three
of the banks were losing money at the time of consolidation. The banks that were largely profitable
gained mainly from non–core earnings, not from loans and other core ... Show more content on
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This number can fundamentally be explained by the merger of Your Community Bank into
Wesbanco. Your Community bank was a healthy and profitable bank with 1,549MM in assets that
chose to sell, seemingly to cash out and to exit the business of banking. In all, six mergers involve a
non–state regulated bank being integrated into the DFI's scope, and four mergers involving a state
regulated bank exiting the DFI's scope. The types of banks that are commonly acquired
encompasses a large range, however, than can be sorted by commonalities. At the simplest form,
two types of banks get acquired, banks that make money, and banks that struggle making money.
Obviously, if a bank cannot make a profit, it must either be taken on by another institution or
liquidated. For banks that do make money; they seem to be sold because of a strong offer from the
acquiring institution, the opportunity to move on to other business ventures, and to ease personal
stress and responsibility. Banks that are trying to grow quickly like to take on banks around 1/5 the
size they are currently. With the largest merger since 2012 being 26%. Three banks seeking growth,
First Merchants, Old National, and Horizon, account for about 70% of the total assets that have been
purchased. Within my look back period, Horizon has made six purchases totaling 1641MM of total
acquisitions. These acquisitions have pushed Horizon to more than double in

Horizontal Mergers
Mergers occur when one business firm buys or acquires another business firm (the acquired firm)
and the combined firm maintains the identity of the acquiring firm. Business firms merge for a
variety of reasons, both financial and non–financial. There are a number of types of mergers.
Horizontal and non–horizontal are just two of many types. WHAT IS HORIZONTAL MERGER? A
merger occurring between companies in the same industry. Horizontal merger is a business
consolidation that occurs between firms who operate in the same space, often as competitors
offering the same good or service. Horizontal mergers are often a type of non–financial merger. In
other words, a horizontal merger is undertaken for reason that have little to do with money, at ...
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That is the kind of market power that anti–trust laws are meant to control. However, it should be
noted that in general vertical merger concerns are likely to arise only if market power already exists
in one or more markets along the supply chain. Conglomerate mergers involve firms that operate in
different product markets, without a vertical relationship. They may be product extension mergers,
i.e. mergers between firms that produce different but related products or pure conglomerate mergers.
Conglomerate mergers generally involve the union of two companies that have no type of common
interest, are not in competition with any of the same competitors, and do not make use of the same
suppliers or vendors. Essentially, the conglomerate merger usually brings together two companies
with no connections whatsoever under one corporate umbrella. This type of arrangement can be very
desirable when the investors for the newly created conglomerate wish to create a strong presence in
two different markets. In practice, the focus is on mergers between companies that are active in
related or neighboring markets, e.g., mergers involving suppliers of complementary products or of
products belonging to a range of products that is generally sold to the same set of customers in a
manner that lessens competition. Proponents of conglomerate theories of harm argue that in a small
number of cases, where the parties to the

Mergers and Acquisitions in Ghana
UNIVERSITY OF CAPE COAST
THE IMPACT OF MERGERS AND ACQUISITIONS ON THE
CORPORATE FINANCIAL PERFORMANCE OF GUINNESS GHANA
BREWERIES LIMITED
BY
STEPHEN SANYE BATOGBEE SEIDU
A DISSERTATION SUBMITTED TO THE DEPARTMENT OF
ACCOUNTING AND FINANCE OF THE SCHOOL OF BUSINESS OF
THE UNIVERSITY OF CAPE COAST IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS
ADMINISTRATION
AUGUST 2008
UNIVERSITY OF CAPE COAST
THE IMPACT OF MERGERS AND ACQUISITIONS ON THE
CORPORATE FINANCIAL PERFORMANCE OF GUINNESS GHANA
BREWERIES LIMITED
STEPHEN SANYE BATOGBEE SEIDU
AUGUST 2009
DECLARATION
Candidate's declaration
I hereby declare that this dissertation is the result of my own original ... Show more content on
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Finally, the following organizations deserve mention and gratitude:
Strategic African Securities (SAS), Merban Registrars (a division of Merchant
Bank Limited), Ghana Stock Exchange (GSE) and Guinness Ghana Breweries

Limited. Special mention must be made of Mrs. Harriet Antwi, head of Merban
Registrars; Miss Angela, head of SAS Research Department and Mrs Woode , head of GSE
Research Department.
v i
TABLE OF CONTENTS
Content
Page
DECLARATION
ii
ABSTRACT
iii
ACKNOWLEDGEMENTS
iv
DEDICATION
v
TABLE OF CONTENTS
vii
LIST OF TABLES
vi
LIST OF FIGURES
vi
CHAPTER ONE: INTRODUCTION
1
Background
1

Problem Statement
5
Objectives of Study
6
Significance of Study
6
Structure of the Study
8
CHAPTER TWO: LITERATURE REVIEW
9
Introduction
9
Definitions
9
Classifications of Mergers
11
Reasons For Mergers (Mergers Versus Internal Growth)
13
Non Value Maximization Motivation Theory
14
Value Maximization Motivation Theory
17
vii

Justification of Mergers
24
Who Gains From Mergers?
25
The Procedures Of Mergers
30
Determination of the Value of a Firm
33
Terms of Mergers
35
Quantitative Factors Affecting Merger Terms
35
Merger Waves
37
CHAPTER THREE: METHODOLOGY
41
Introduction
41
Background of the Companies
41
Study Design

KCP & L Mergers
The focus of this paper is concentrating on company integration in management of a merger, which
is a current issue of KCP&L that affects the organization substantially. Provide ways to make it
more effective in efficient for the company to understand and make better decision when
restructuring a business from a merger on both the technology and business. By researching
integrations change within management of companies that have merger and look at how other
companies made the transformations. With the information gather I will be conducting and writing
preliminary steps and outline for KCP&L to become one of the companies admired by others and to
work on a long–term goal of making KCP&L into a Fortune 500 Company.
Kansas City Power & Light(KCP&L)

Merger Of Hospital AAnd B.
A merger is a partial or total combination of two separate business firms and forming of a new one.
There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves
the combination of joint ventures and inter–corporate stock purchases. Complete mergers are results
in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers
in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals
merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002).
This paper is an attempt to study the impact of the merger of two competing healthcare organization
and will also attempt to propose appropriate ... Show more content on Helpwriting.net ...
It decided to liquidate after 3 years of red ink.
Hospital B was a not–for–profit organization, located in west side of town. It consists of 154
inpatient beds and a geriatric health center with 100–106 beds, 13 transitional beds and 7
rehabilitation beds. Total staff of 914 employees. It is an old facility and has earmarked $20 million
for renovation to existing emergency room and ICU. Appendix 1, Table 1 provides an overview of
the two facilities before merger and an overview of PRMC after Merger.
Rational for merger
Merger of Hospital A and B and its consolidation into PRMC was essential as Hospital A was
crippled with losses for 3 previous years and was also forecasting losses in the coming year.
Hospital B was struggling with an aging facility. Furthermore, given that both the hospitals were in
the same community and therefore essentially serving the same community, they were competing
both: for the same patients, as well as, the clinical staff. The merger, allowed the new PRMC to
reduce the healthcare costs, address the shortage of healthcare personnel and improve the delivery of
healthcare by reducing the duplication of services and providing wide variety of services to the
small community of 60,000 in southeastern part of Idaho.
Assumptions
Before we begin the process of examining the impact of a merger of two competing hospitals, there
are some ..... that we will assume. Some of the assumptions are 1.) There are no

Grob Mergers
Mergers are such a complex concept, which can bring about a variety of emotions. I remember
learning about the topic while pursuing my MBA. During that time, I reviewed companies that had
merged and their history. Some were horrible stories of people losing their jobs and a loss of the
mission of the company. I think that in most of these cases (the ones I learned about through MBA)
the merger was done out of fear. Their company was struggling to grow, had financial issues, or
policy were changing the way they needed to do business. Perhaps this was why there were negative
repercussions from the merger. I do realize that the merger of two or more companies does not come
in a nice clean package. However, Grobman does a nice job reviewing how to begin a merger and
the steps necessary for a merger. He reviews that each participating board should adopt a resolution
in favor of the general principle of merging, should appoint a merger committee of board members
and staff, use a outside experienced merger consultant, and have meetings scheduled to discuss
goals of the merger, whether it is feasible, budgeting, laws, polices, and staff (Grobman, 2015, pg.
395). I think having a careful plan and address these areas Grobman discusses can lead to a
successful merger. ... Show more content on Helpwriting.net ...
They are as follows: 1) Organizations that deliver similar services recognize that economies of scale
can be achieved 2) Organization that are struggling financially seek a partner 3) National
organizations may place restriction on local affiliates 4) Two nearby agencies find themselves
engaging in destructive competition 5) Changes in leadership capability, both of staff and with the
board 6) Scandal or other ethical challenges 7) Changes in the outside regulatory environment 8) A
loss of membership 9) The organization's mission has been accomplished successfully (Grobman,
2015, pgs. 393 – 394). A few of these stood out to me for various

Advantages Of Mergers And Acquisitions
According to Brunsman (1998), Berman (2007), Arrow (1969), there are few main points that can be
highlighted about Mergers and Acquisitions:
A Merger and an Acquisition are two different processes. The results can be similar in the end but
the the ways the both processes work are different;
Mergers or acquisitions are not always successful, sometimes they fail;
Hostile vs. Friendly – An acquisition could be labeled "hostile" or "friendly." This just refers to
whether acquired shareholders of the company are on board with the transaction or not. Obviously,
if they welcome, the transaction is friendly and if they oppose the transaction, it is considered
hostile. It is important to remember though that if an acquisition labeled as a hostile, it doesn't
necessarily mean that it will be bad for the future of the company being acquired.
The following can be major benefits of mergers and acquisitions (Bertkovitch, 1993):
Increased value is generated for ... Show more content on Helpwriting.net ...
For example, Microsoft's acquisition of Skype is a product acquisition. Then, some companies can
be acquired for non–saleable assets. For instance, the asset can be anything, even simply a customer
database or a media property. Another advantage that can be taken from going into acquisition is
acquiring a new talent. Google is very famous for doing such kinds of acquisitions. This company
by buying businesses is taking the most important from each organization. For instance, engineers or
IT department, and afterward, destroy the parts of the bought company that they don't need.
Companies go through mergers and acquisitions for the target goal of improved financial
performance for shareholders. Profit is the main aim of almost every organization, so at the end of
the day, more money is always an objective and advantage from merger and acquisition

Disadvantages Of A Vertical Merger
The market shares of the combining entities prior to the proposed merger and of the combined entity
subsequent to the merger, constitute an important criteria for determination of the level of
concentration in the market which in turn indicates the level of competition in the market.
The European Commission takes into consideration the accretion of market power in the upstream
as well as the downstream market. It is difficult to assess the adverse effects of a vertical integration,
as only the market share is not a clear indicative of all the possible anti–competitive effects of such a
merger. As discussed in the earlier section of this study, the European Commission also takes into
account the loss of potential competition that might result from the vertical merger.
In India the Competition Act, 2002 categorically numerates, among the factors, the market shares of
the persons and/or entities in a combination, both individually and as a combination. The CCI has to
adjudge which other factors in addition to the market share has to be considered for the evaluation
of the proposed merger.
Lessons to be learned: The assessment of a vertical merger is much more complex than horizontal
mergers and the same approach cannot be used to adjudge both the types of mergers. However, the
Competition Act, 2002, does not specify or ... Show more content on Helpwriting.net ...
The article 2 of the ECMR, guides the European Commission to appraise the factors for considering
the impact of a merger on the access to the inputs and supplies and 'any legal or other barriers to
entry'. In addition to the ECMR, the Non–Horizontal Merger Guidelines provides a great insight in
the possible scenarios which could lead to foreclosure of access to the market and other non–
coordinated or coordinated effects of a vertical

Mergers : Merger And Acquisitions Essay
Mergers and acquisitions have been prevalent amid companies in the United States for decades.
Many believed that merger and acquisition strategies played a critical in the rebuilding of companies
domestically three to four decades ago and continue to produce the same benefits today. Merger and
acquisitions are used by companies to produce greater worth for stockholders and shareholders.
Mergers involve a minimum of two establishments partnering together to form a more effective and
efficient company under one umbrella. Acquisitions involve the process in which an establishment
buys a controlling or complete interest in another establishment with the goal of making the
acquired establishment a subsidiary in its portfolio (Hitt, M. A. 2013). Kelloggs is a household name
and has been a part of families for over 100 years. In 1898, founder W.K.Kellogg and his brother
attempted to make granola and in this failed attempt changed breakfast forever when they
inadvertently made flaked wheat. Through experimentation, W.K.Kellogg mastered how to make
flake corn, thus creating corn flakes. Kelloggs take pride in fueling bodies and providing
nourishment to help people start their day. Kellogg's produce and market convenient ready–to–eat
products such as cereals, pastries, breakfast bars, crackers, fruit flavored snacks and beverages.
Famous for its differentiated product line, Kellogg's is the umbrella for many brands such as
Cinnabon, Eggos, Pop–Tarts, Famous Amos, Special K,

Advantages And Disadvantages Of Merger And Mergers
The deregulation of the economy has radically altered the business environment in India since 1991.
With the changes brought about in the economic policies and the introduction of new institutional
mechanisms has provided the corporate sector with huge opportunities to exploit the demands of the
huge Indian market. Mergers, acquisitions and amalgamations have become major means of
consolidation of the industry. The corporate sector in India currently is finding a sudden rush of
Mergers and Acquisitions and has very successfully swept all the industries. Managers nowadays
consider amalgamations and takeovers as very powerful weapons in their arsenal and a very
essential component in the strategic activities of a well–managed business. The growth being central
to the current environment, M&As are gaining increasing acceptance as a mode of inorganic growth.
Merger
Merger is said to occur when two or more ... Show more content on Helpwriting.net ...
Conglomerate Merger: Here companies are from different industries. Here the business or products
are totally different, no way related. They merge their operations because that overlaps. This kind of
merger leads to unification of different businesses from different industry and verticals under the
umbrella of one brand or firm.
Amalgamations
A merger can be defined as an amalgamation, if all assets and liabilities of one company are
transferred to the transferee company, in consideration of payment in the form of equity shares of
the transferee company or debentures or cash or a mix of the above modes of payment.
OR
Merger is also the synthesis of two or more existing companies (also known as amalgamation).All
assets, liabilities and stock of one company stand reassigned to the transferee company in
deliberation of payment in the form of equity shares of Transferee Company or debentures or cash
or a mix of the two or three modes.
Objectives of Mergers and Acquisitions
(i) Economies of Scale
(ii) Increased revenue /Increased Market Share
(iii) Cross

Merger
For around 25 shares of Re 1 of CBoP, an investor will get one share of Rs 10 of HDFC Bank. In
last two days, share price of CBoP moved from Rs 49.85 on Wednesday to Rs 56.40 on Friday.
However, it seems, investors of HDFC Bank did not like the development. The share price of HDFC
Bank on Thursday moved up from Rs 1,534.50 to Rs 1,543. But on Friday, it fell sharply to Rs
1,475. Prior to this, in August 2007, CBoP was merged with Lord Krishna Bank.
* 2008 HDFC Bank acquired Centurion Bank of Punjab.
The swap ratio is expected to be around 1:25–30," said a banking source. The merger will make
HDFC Bank the country's seventh largest bank after Bank of India (BoI) and ahead of IDBI Bank,
from the current 10th position. The merger ... Show more content on Helpwriting.net ...
CBoP shareholders will get one share of HDFC Bank for every 29shares held by them.HDFC Bank
and Centurion Bank of Punjab have agreed to the biggest merger inIndian banking history, valued at
about $2.4 billion.
Rana Talwar's Sabre Capital would holdless than 1 per cent stake in the merged entity from 3.48 in
CBoP, while Bank Muscat's holding will decline to less than 4 per cent from over 14 per cent in
CBoP.HDFC shareholding falls to will fall from 23.28 per cent to around 19 per cent in themerged
entity.
The merger has been accounted for as per the pooling of interest method of accounting in
accordance with the scheme of amalgamation. Adjustments have been made to the amalgamation
reserve to harmonize accounting policies of CBoP with that of HDFC Bank principally relating to
provisioning norms on impaired loans and depreciation policies on fixed assets. Merger related
expenses have also been adjusted against the amalgamation reserve.
The amalgamation was accounted for as a business combination under the purchase method of

Mergers
Mergers are referring to the consolidation of two companies. After the merger the two companies
became one but acqusition is different than merger because in the acqusition the firm which
acquiries the other firm stays solid and the other firm becomes a part of the acquirer. In the mergers
the concept which is often used is discounted cash flow method(DCF). This method is for valuation
of the companies. There are both some advantages and disadvantages for Discounted Cash Flows.
The advantages are the model allows for changes in cash flows in the future, the cash flows and
estimated value are based on forecasted fundamentals and the model can adapted for different
situations. Just like its advtanges there are also some disadvantages. These ... Show more content on
Helpwriting.net ...
Companies should keep in mind that after the merge there will be some synergy between companies
and there will be growth for the after the merger because of the companies will continue to work.
Also the market power will increase and the big company after the merger will have easy access to
resources. There are also some cross–border advantages for mergers too.
The market imprefections will be exploited, government adverse policies will be adverted, there will
be technology transfer and product differentiation. Finally, both of the companies clients will follow
the merger and will start to work the company after the merger. There will also be some bad side of
merger too. Diversification can be huge problem for the companies as in today's world highly
diversed companies become more successful. If there is conflict of interest between the managers of
the two firms and this can even and the merger. Other than the problems there is also bootstrapping
problems which can make a suspicion during the merger.
Exhibit 1.A
Assumptions:
Exchange ratio: One share of Company One for two shares of Company Two
Market applies pre–merger P/E of Company One to post–merger earnings.
Company One
Company Two
Company One Post–Acquisition
Earnings
$100 million
$50 million

$150 million
Number of shares
100 million
50 million
125 million
Earnings per share
$1
$1
$1.20
P/E
20
10
20
Price per share
$20
$10
$24
Market value of stock
$2,000 million
$500 million
$3,000

Mergers and Acquisitions Tasha Powers Dr. Michael Laverty Business 508 – Contemporary
Business November 17, 2014 A merger or acquisition is a combination of two companies where one
corporation is completely absorbed by another corporation. The less essential company loses its
identity and becomes part of the more imperative corporation, which retains its identity. A merger
extinguishes the merged corporation, and the surviving corporation assumes all the rights,
privileges, and liabilities of the merged corporation (Gomes, 2011). A merger is not the same as a
consolidation, in which two corporations lose their separate identities and unite to form a completely
new ... Show more content on Helpwriting.net ...
The two companies would also create a joint venture, combining their consumer divisions to create a
world–leading consumer healthcare business. It appears that the primary reasons to merge were to
improve revenue by allowing Novartis access to GSK's oncology products and to benefit their stock
holders (GSK). Novartis and GSK have agreed to create a world–leading consumer healthcare
business through a joint venture between Novartis OTC and GSK Consumer Healthcare. Upon
completion, Novartis will own a 36.5% share of the joint venture and will have four of eleven seats
on the joint venture's Board. Furthermore, Novartis will have customary minority rights and exit
rights at a pre–defined, market–based pricing mechanism. It is clear that Novartis will have more
control over the company, which could result in many of GSK's organizational structure being
dismantled and/or reorganized. With that being said, it doesn't appear that the companies' human
resources management practices had to be modified in anyway. This merger was strictly based on
revenue and profits – none of which should have affected the employees. The changes strictly
involved access to certain products and revolved less around any other aspect of the business.
Novartis' acquisition of GSK oncology products is expected to further reinforce its leading
Oncology business and improve the growth profile of the combined portfolio. The addition of the
GSK products is expected to expand Novartis'

The DCV Merger
What is a merger? Most people would think that it is some sort of combination of two or more
companies to be one. A simple synonym describing this noun would be a: combination, fusion,
integration, confederacy or even an incorporation. Common small business approach of a merger is
to make all work efficient and at a reduced cost to promote new products and services within
another venture doing roughly the same ratio of productivity. Within the mergers concept, there is
often a term used as discounted cash flow (DCF). This logic is strictly for assessment of the
companies. There are both advantages and disadvantages for DCF. The advantages of this model
allow for changes in cash flows in the future. Cash flows are estimated based on their value ... Show
more content on Helpwriting.net ...
Anheuser Busch built industry leading positions in the most important beer profit segments in the
world, through a blending of organic growth and value–boosting acquisitions. They adhere to a
distinct brands strategy in which most their wealth is devoted to those brands like Bud Light,
Budweiser, Peroni, Heineken, and now Miller Coors which they believe have the greatest long–term
growth potential in China. Investments behind their top brands are powered by a meticulous
approach to cost management, operational efficiency, and more specifically, the continuous
reduction of non–consumer expenses like garbage, water and recycling, etc. They have a strong
track record of industry–leading margins and cash flow generation (Anheuser Busch InBev,

Berkshire Hathaway Merger
I have chosen to write my paper about two particular mergers which involve large companies that
everyone is familiar with. I will be discussing the successful union
of Heinz Corporation, Berkshire Hathaway/3G and Kraft foods. In addition I will be writing about
the unsuccessful merger of K–mart Corporation and Sears. I feel that
the success and failure of these mergers are important because they involve the future of products
that consumers purchase every day and have related to for most of
their lives. The following comparison relates to management because it shows how strong
companies that are run successfully can continue to grow even if they do
face some hard times. On the other hand it also shows that companies that are not successfully ...
Show more content on Helpwriting.net ...
In fact, Sears has seen a consistent drop in
revenue since 2011 and overall sales have be down since 2006. Even selling off their Lands End
division which was in competition with L.L. Bean and Eddie Bauer did little in the
way of resolving the problems. Also they have sold off their Sears Hometown as well as Sears
Outlet stores. One thing that I think could have been done to prevent the problem
was that Sears should have never merged with K–Mart. K–Mart had declared bankruptcy three years
before and ended up closing a large number of stores. Secondly, I think
that K–marts problem lied with the way they tried to be competitive with the number of stores they
had over anything else. By this I mean that the company should have followed
the strategy of Wal–Mart and Target. Like I mentioned previously, Wal–Mart focused on small town
stores and had distribution centers regionally located to those areas. That
is one way they were able to offer such low prices since they did not have to spend large sums of
money to ship goods from one end of the country to the other. Target

Mergers And Acquisitions Essay
Introduction Mergers and acquisitions immediately impact organizations with changes in ownership,
in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and
institutional factors that can, taken together or in isolation, influence corporate decisions to engage
in mergers or acquisitions. The financial risks of merging with or acquiring an organization in
another country and how those risks can be mitigated are important issues for corporations to
conduct research on. This paper will examine the sensible and dubious reasons for mergers and
acquisitions and the benefits and costs of the cash and stock transactions.
According to Florida Incorporation, a merger is the ... Show more content on Helpwriting.net ...
Cash advance may be safer for the buyer, but getting the company at the other end to agree may be
difficult, and the company might lose the sale.
An Irrevocable Letter of Credit is a good option for both parties because it is a letter from a bank
guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount
(Week 5, 2006). According to the week five lecture, the U.S. organization should select a major
bank that has considerable experience with irrevocable letters of credit. The major bank handling the
Irrevocable Letter of Credit can advise the least risky method of handling the transaction. The
general idea is that funds are transferred from the foreign customer's trusted financial institution to
the organization's bank once the terms of the letter of credit are met. An Irrevocable Letter of Credit
is one financial instrument that can help organizations make sales to a foreign entity safely.
A few decades ago, some U.S. companies began to explore another takeover solution, namely partial
or total acquisition of independent non–U.S. companies (Week 5, 2006). In this day, there are a
significant percentage of merger and acquisition transactions, which are cross–border. Even in
combinations of two U.S. multinationals, the percentage of international business being incorporated
can be a considerable economic portion of the total (Week 5, 2006).
Often, when specific patents, products, management teams,

How Mergers And Mergers Inevitably Improve The Performance...
With reference to your own research and the item above, do you think that takeovers and mergers
inevitably improve the performance of the businesses involved? Mergers and takeovers are forms of
external growth within a business. External growth occurs when one firm decides to expand by
joining together with another. A takeover specifically refers to the gaining control of a firm by
acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining
with another firm to form a new combined enterprise, shares in each firm are exchanged for shares
in the other. There are three types of integration: Horizontal; Vertical; and Conglomerate. Horizontal
refers to the idea of one firm joining with another at the same stage of the same production process.
It also allows for greater market share; achieves economies of scale; and an opportunity to enter a
different market segment. An example of this would be Ford's takeover of Volvo – both being car
manufacturers. Vertical integration is when one firm joins with another at a different stage of the
same production process. Forward Vertical is when the other firm is at a later stage and Backward
Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm
to control key stages of the production process; guarantees access to a market; and gains control of
supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key
stages of

Mergers and Acquisitions Analysis
FIN 444 M&AAnalysis Paper In order to have a successful M&A many different steps are
involved. Each step in the process is just as important as the next and cannot be over looked. Some
of the broader area's that require focus are; accounting, taxes, and legal. Within each of these
categories are several sub categories that are important to focus on when attempting to complete a
successful merger or acquisition. While every organization may have a different process for doing
so, and place more importance on one than another would, all of the aspects listed are important.
However, it is up to each individual organization to designate how important each one is. When it
comes to the accounting portion of a merger or acquisition ... Show more content on Helpwriting.net
...
A tax shield is when there is a reduction in the amount of income taxes paid that result from the
amount of income a company has that is considered taxable. A good example of a tax shield is the
interest paid on debt. Organizations may take on more debt, or acquire companies with large debt
loads simply to increase the amount of interest paid and to receive that amount in a reduction on
their income taxes. Tax shields is relevant because they often increase the overall value of an
organization due to the cash flow that it saves for them, and is an invaluable piece to the business
valuation process. (Hartman) Lastly, we have the weighted average cost of capital (WACC). The
WACC is the percentage rate that an organization is going to be projected to pay in order to finance
all of its assets. Factored into this calculation are the monies owed to its creditors, other providers of
capital, and owners. Organizations also use this weighted average in order to see if any of the
investments that are available to them are worth pursuing or not. The calculation for the WACC is: .
(www.investopedia.com) The WACC is relevant to the M&A process because it helps to
determine whether or not the company in question is worth pursuing or not. The last section of the
M&A process is the legal side. Under the legal category there is; corporate

The Q Theory Of Mergers
Model Introduction The model used in this paper is derived from the model used in the paper "The
Q–Theory of Mergers" by Boyan Jovanovic and Peter L. Rousseau (2002) and in the paper "The Q–
Theory of Mergers" by Peter L. Rousseau (2006). Production function With its state of technology
as z and its capital stock as K, a firm's production function is output = zK. It is important to note that
the capital stock includes both labor and physical capital and that z stands for "the quality of
organization capital" (Rousseau 2006) and other intangibles such as proprietary inventions or
management skill. The parameter z follows the Markov process Pr⁡
{z_(t+1) z^ ' |z_t=z}=F(z ',z)
and it is firm–specific. In the market, firms can buy new or dissembled used capital at a price of
unity. Moreover, there is no markets for z so a firm must accept whatever z given. Growth of
capacity Let X be the firm's direct investment in unbundled capital and Y its acquisitions of bundled
capital. The firm's capital stock in next period will be: K^ '=(1–δ)K+X+Y Cost of growth Aside
from payment for X and Y, the firm also faces forgone–output cost of growth: c(x,y)K, where
x=X/K and y=Y/K Merger Gains After purchasing new and used capital, a firm transfers its z to the
new entity. Hence, the gain of a merger is largest when the difference between the target's z and the
acquirer's z is biggest, that is, the target's z is high and the acquirer's z is low. Assume that the
acquirer's state is

Merger And Acquisition Of A Merger
A merger takes place when two companies joint together to form a single company. A merger is
alike to a takeover or acquisition, except that in the case of a merger remaining stakeholders of both
companies involved retain a shared interest in the new company. By contrast, in an acquisition one
company purchases a bulk of a second company's stock, creating an uneven balance of ownership in
the new combined company. Acquisition refers to buying out another company and taking it into the
fold of the acquiring company. This is done by paying the acquired company, the value of its capital
and depending upon the situations, a premium over the capital amount. Acquisitions and mergers
both involve one or multiple companies purchasing all or part of another company. The main
difference between a merger and an acquisition is how they are financed. By acquiring a small
company with a good technology, a big company can develop a competitive advantage for example;
recently Facebook acquired Instagram and Whatsapp. This means to stay competitive; company
needs to remain on top of technological development and buyer will need to pay an amount if they
want to acquire the company and for seller, that premium represents their company 's future growth.
Merger or acquired its increases the capital of small company. HUMAN RESOURCE PLANNING
HR should know the vision, and strategic plans of the company need of the company, management
of all aspects of HR. Essentially, good HR planning will ensure

AT & TV Merger
In mid of 2014, a big merger and acquisition news was published in different print and electronic
media was that the AT&T Inc.'s acquisition of satellite TV provider DirecTV. AT&T will pay $48
billion in cash and $17 billion in debt. This acquisition will make AT&T as a unique competitor with
un–parallel capabilities in mobile, video and broadband internet services (Anonymous. 2014).
AT&T will borrow some money and will issue stocks to perform the deal. The additional cash flow
will be used to cover up the debt. The merger/acquisition is still under process.
1. When the deal has been successfully completed, it is expected to generate synergies in scale and
scope for AT&T. AT&T will be able to increase its video customers from 5.7 million (U–verse only)
to 26 million (Rogowsky, M., no date). AT&T will also be able to provide wireless combined with
u–Verse and DirecTV, which will attract more customers. This merger/acquisition will increase its
market power which also will lower capital cost and improves the purchases and sales.
2. ... Show more content on Helpwriting.net ...
When two companies offer the similar or compatible products or services in the same market and
combines together under one owner is called horizontal merging (Linton, no date). So, this is a
horizontal merger which will increase the company's cash flow and profit/revenue.
3. Although it is very complicated task to integrate the both companies successfully under one
umbrella. But AT&T has previous merger experience which can lead to successful integration of the
companies.
4. I think there will be no market concentration occurred as a result of this merger/acquisition.
Because due to this acquisition the monopoly of the other giant company in this business will be
reduced. This will lead to increase the price competition.

Disadvantages Of Mergers
Mergers and Acquisitions: A merger is said to occur when at least two organizations consent to
consolidate, bringing about another element or with the subsequent firm keeping up the character of
the gaining organization. Most economies forestall mergers between straightforwardly contending
firms. The method of reasoning is to counteract monopolistic economic situations where the buyer
does not have any decision aside from only one merchant. Affirmations of monopolistic conduct
have tormented Microsoft's operations in Europe. A merger may take either of the two forms,
absorption or consolidation. The mix of at least two organizations into a current organization, where
every one of the organizations aside from one lose their character is named as a merger through
absorption The mix of at least two organizations into another organization, where every one of the
organizations lose their character is named as a merger through consolidation.Here, the gained
organization exchanges its advantages, liabilities and shares to the procuring organization in return
of money or shares. There are three types of ... Show more content on Helpwriting.net ...
The Banking division afresh showed its importance in utilizing M&A bargains. Santander's union of
its Brazilian operations was esteemed at US$ 5.7bn. The BTG Pactual interest in Assicurazioni
Generali S.p.A. added to expand the 2014 M&A bargains by another US$ 1.8bn. Private value
stores, be that as it may, lost some hunger in 2014. In contrast with 2013, the volume of exchanges
performed by this portion was 21% lower. All things considered, the Banking area was included in
34% of the arrangements completed in 2014. Industry sector focus

Sme Mergers
It becomes very obvious the geographical location also play a significant role in the merger process,
which was not a factor in the Ole–Jacob article. When two colleges are not geographically located
such as mentioned above a much larger problem exists. Research says "Rutgers–Camden is located
in North Jersey; Rowan University is located in South Jersey. The campuses are roughly half an
hour apart by car (assuming no traffic delays) or between 45 minutes to almost an hour apart by
bus". This illustrates that simply getting students, staff and faculty to and fro between campuses of
one merged university can become an issue that those considering non–contiguous geographic
mergers will have to face (Elliot & Major, 2001). Another contrast from ... Show more content on
Helpwriting.net ...
Given higher education's current process of reinvention and the history of mergers as part of
American higher education in particular, it is unsurprising that mergers continue to be seen as a way
to solve many of the cost issues facing colleges and universities today. It is also unsurprising that
mergers are growing more complex given the modern university environment's assorted real and
intellectual property, related enterprises, and physical assets. Indeed, many colleges, while not
averse to the idea, are cautious. A final contrasting point which makes the Skodvin, (1999) research
more suspect and less creditable is that laws have changed in recent years which has expanded the
reasons why educational institutions are looking harder at mergers and consolidations. The rational
may have been relevant for a particular segment of educational institutions at a particular time but
certainly not

Essay On Effect Of Merger
EFFECT OF MERGERS ON EMPLOYEES Apoorv Choudhary IIPS–DAVV INTRODUCTION
There are contrasting views on the impact of mergers and acquisitions on employees. Many times
field level and management level employees react differently to a merger. Mergers are a form of
consolidation where two or three companies merge and the identity of only the largest company
remain intact and the smaller companies losses their identity. MERGER– The combining of two or
more companies, generally by offering the stockholders of one company securities in the acquiring
company in exchange for the surrender of the stock of the merging company. In a merger existing
stockholders of both companies involved retain a shared interest in the new corporation. ... Show
more content on Helpwriting.net ...
These layoffs may have long lasting traumatic and negative effect on workers who have been fired
as well as the workers who survive may suffer survivors syndrome. EFFECT OF MERGER: A case
of SBI and SBIndore merger: Many newspaper reports during the time of the State Bank of India
and State Bank of Indore merger lead us to the following facts about the perception of employees
towards the big merger: –The management level employees of State bank of Indore supported
merger because of the benefits proposed like pension plan and group insurance, increased salary and
bonuses etc. –The clerical staff of State Bank of Indore protested the merger and even went to strike
for certain demands such as the policy for union should remain unchanged as the new policy
empowers the management rather than the union. For the same reason they went on a short term
strike too. –After merger the employees from S. B. Indore were transferred to distant areas as a
result of reshuffling of manpower. OBJECTIVES OF THE STUDY The objective of the research
article is to observe how mergers affect the employees, the human resource, of the merging
companies. The primary objective of the research is to study the impact of mergers on the
employees

Busch Inbev Merger

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