1. Presented by:
Arshad Arfin (01)

2.  Economy of scale
 Economy of scope
 Synergy
 New technology
 Reduce tax obligations
 Access to new suppliers, distributors, customers, products

3.  Strategic aspects  Financial aspects
 Lack of growth potential  Distressed sale
 High competition  Realisation of earnings
(Private Equity, Venture
 Other focus Capital)
 Rationing of financial
resources
 Leading aspects  Opportunistic / “hidden”
 Succession planning aspects
 Incomplete / incompetent  Attractive offer
management team
 Anticipated market
downturn

4.  Strategic aspects  Opportunistic reasons
 Synergies  Asset stripping
 Economies of scale  Take advantage of financial
 Technology/Know-how difficulties of competitor
 Growth
 Diversification (region /  Irrational behaviour
product)  Empire building
 Access to (leadership  Re-investment of free cash
resources) flows

5.  Competition is minimized
 Oligopoly market.
 Job cuts
 Price hikes
 Cultural integration becomes difficult
 Hidden liabilities

6.  Failures of M&A because of negligence of people
related issues.
 4 major factors to make success M&A
 Responding organizations
 Effective communication
 Executive retention
 Cultural integration

7. Extent of Acquisition
Tata Steel and Corus

8. The $8 billion Tata Steel-Corus deal is at No 5 among the top deals
witnessed by the steel industry over the last couple of years.
It is one of a very good examples of an Acquisition.
Purchaser: Tata Steel
Purchased: Corus
Deal: $12 billion
In 2005, Tata Steel was only the world's 56th biggest steel producer and its
takeover of Corus represents its first expansion outside Asia.
The combined entity will have a turnover of $32 billion by 2011-12 with an
EBIDTA margin of 25%

9. Extent of Mergers
NTT DoCoMo and Tata

10. What happens when you combine Tata Teleservices with NTT DoCoMo (NYSE: DCM)?
Well, it’s obvious, at least now – Tata DoCoMo. And that’s exactly the new name of the
GSM operator owned by Tata Group and partly (26%) by the Japanese leading
mobile operator.
The new brand along with the new website was developed by the Business and
Technology Cooperation Committee that DOCOMO and TTSL have jointly established,
and it symbolizes “the two companies’ strong partnership.”
NTT DoCoMo- Japan
TATA- India
The deal gives Japan's largest mobile operator a foothold in the world's fastest growing
mobile market

11. Absorption Transformation
Acquired company Both the companies find
High
conforms to acquirer- new ways of operating-
Cultural Assimilation Cultural transformation
Degree of Best of Both
change in Additive from both
sides- Cultural
acquired
integration
company
Preservation Reverse merger
Acquired company Unusual case of
Low
retains its acquired company
independence- Cultural dictating terms- Cultural
autonomy assimilation
Low Degree of change in High
acquiring company