A general view on mergers and acquisitions: their differences, benefits, and examples.

1. Robert E. Alpert
Scottsdale, AZ
Mergers &
Acquisitions:

2. Merger

3. - involves two or more companies
- voluntary amalgamation of firms
- combination of two or more businesses into one single enterprise (Dictionary.com)
- new business name (Company A + Company B = Company C)
- aims to achieve greater efficiencies of scale and productivity (Entrepreneur.com)
Merger

4. Acquisition

5. Acquisition
- includes an acquiring and a target company
- the acquiring company assumes control over the target
- often paid in cash, stocks or both
- there is no formation of a new company
- for growth

6. - strategic management
- corporate finance and management
Mergers & Acquisitions

7. Mergers & Acquisitions
Main benefits:
- increased value generation
- cost-efficient
- increase in market share

8. Mergers & Acquisitions
More advantages:
- financial leveraging
- lower cost of production/operation
- higher competitiveness
- improved profitability & earnings per share (EPS) (Mapsofworld.com)

9. Mergers & Acquisitions
Scenarios:
- when a company wants to make its presence felt in the market
- when a firm wants to avail administrative benefits
- when a company is about to introduce new products

10. Disney and Pixar
Mergers & Acquisitions

11. Mergers & Acquisitions
Exxon and Mobil merged to form ExxonMobil