1. VNS Institute Of Management
ACQUISITION

2. Purchase of one company by another company.
COMPANY 1 COMPANY 2
NEWLY FORMED
COMPANY

3. Buyer buys the shares of target company.
Ownership control conveys effective control over assets,
but since company is going concern, liabilities come as well.
Buyer buys assets of target company.
Cash target receives from sell-off is paid back to its
shareholders by
-dividend
-through liquidation
If buyer buys out entire assets, then target company is
equal to company shell.
Buyer often cherry picks his assets.

4. Gain new technology and talent.
Grow revenue.
Strategic assets.
Market shares.
Synergies.

5. Approximately 70 percent of the deals fail.
Inadequate “due diligence”.
Acquiring companies blow integration.
Acquired employees head for the exits.
Need to welcome acquired employees.

6. ACQUISITION
FRIENDLY HOSTILE

7. Companies cooperate in negotiations.
Synonymous to merger of equals.

8. Takeover target unwilling to be purchased.
It can also be if the acquire company has no prior
knowledge of offer.
Hostile takeovers do turn friendly in the end
most of the times.
For the above thing to happen, offer is usually
improved.

9. The biggest and the one which is called the father of all
acquisitions in India, is Tata Steel acquiring Anglo-Dutch firm
Corus Group in 2006 to create the fifth largest steel company
of the world.The deal was worth $7.6 billion ( 36,650 crore).
Aditya Birla Group's Hindalco Industries, India's largest non-
ferrous metals company, acquired the Canada based
firm Novalis in an all-cash transaction for $6 billion.
Bennett Coleman & Co, India's largest media group and the
holding company of theTimes of India group, bought Virgin
Radio in the UK in a $53.2 million (Rs 445cr approx) deal with
SMG Plc. in 2008.