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Master of Business Administration - MBA Semester 3
MF0011-Mergers & Acquisitions
(Book ID: 1732)
Assignment (60 Marks)
Note: Answers for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Explain the types of mergers and acquisitions (M&A).
Each type carries 2 marks. Explanation of 5 types
Answer. Types of Mergers and Acquisitions
There are many types of mergers and acquisitions that redefine the business world with new
strategic alliances and improved corporate philosophies. From the business structure perspective,
some of the most common and significant types of mergers and acquisitions are listed below:
Horizontal Merger
Q2. Explain basic steps in organizing a merger. Explain financial aspects of mergers.
Explanation of steps in organizing a merger - 7
Explanation of financial aspects of merger - 3
Answer. The steps of integration can vary from company to company based on the nature of the
business and the complexity of the merger. The goal of a merger is business performance
improvement and performance is all about people – collectively and individually. Hence, what
works is to consider this as the top priority while defining the integration plan. Here are five steps
that I have seen worked well for some of the more successful mergers that I have been associated
with:

2. Q3. Explain about Management buyouts (MBO), its motives and structure.
Explanation of Management buyouts (MBO) - 2
Motives behind MBO - 4
Structure of a MBO - 4
Answer. A management buyout (MBO) is a form of acquisition where a company's existing
managers acquire a large part or all of the company from either the parent company or from the
private owners. Management and leveraged buy-outs became phenomena of the 1980s. MBOs
originated in US and traversed the Atlantic, spreading first to the U.K. and then throughout
Europe. The venture capital industry has played a crucial role in the development of buy-outs in
Europe, especially in smaller deals in the U.K., the Netherlands, and France.
Q4. Write Short notes on:
a. Ownership decision
b. Location decision
c. Role of government policies in international M&A
Answer. a. Ownership decision:
Ownership is a powerful idea rooted deeply in our history and in the foundations of our economy.
For better and for worse, it is an idea that evokes powerful emotions and high expectations.
In fact, in legal terms employees rarely have the decision-making rights they naturally expect from
ownership. Writing in the Psychological Record, F.W. Rudmin and J.W. Berry conclude that
"culturally and behaviorally grounded conceptions of ownership may not coincide with explicitly
legalistic conceptions."
Q5. Explain the types of takeovers. Explain defenses against takeover bids.
Types of takeovers - 5
Defenses against takeover bids - 5
Answer. Types of takeovers:
There are several different types of takeover. The main types are:
 'Friendly Takeover' - the company bidding will approach the directors of the other
company to discuss and agree an offer before proposing it to the shareholders of that

3. Q6. Explain the valuation approaches. Explain the business valuation methods.
Explanation of valuation approaches - 5
Explanation of business valuation methods - 5
Answer. Valuation Approaches:
 Asset Approach
 Market Approach
 Income Approach
Spring-2016
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490