THE REASONS FOR THE FAILURE OF IM&A WHAT IS THE DEFINITION OF IM&A Types of mergers Why do companies merger? How to success inan international M&A

2. PRESENTATION CONTENTS
WHAT IS THE DEFINITION
OF IM&A?
WHY DO COMPANIES MERGER ?
TYPE OF MERGERS
WHY INTERNATIONAL MERGERS
OFTEN FAIL?
2
EXAMPLE OF FAILURE
MERGERS
HOW TO SUCCESS IN
MERGERS?
MINI GAME: LUCKY NUMBER
2 3
4 5 6

3. WHAT IS THE
DEFINITION
OF IM&A
PRESENTED BY DINH THI KIEU ANH

4. MERGER
 The combination of two
companies
 The result is a new legal
entity that operates under
the banner of one name.

5. ACQUISITION
When one company
purchases another. The
company that’s been bought
doesn’t cease to exist or
change its name. Instead, it’s
just owned by the parent
company.

6. INTERNATIONAL MERGER & ACQUISITION (IM&A)
Terms used to describe a deal
that brings together two
companies belong to different
countries. The two are used
interchangeably but they have
different legal meanings
6

8. Types of mergers
Market-extension
merger
Horizontal
merger
Product-extension
merger
Vertical merger
Conglomerate
merger

10. Why do companies merger?
Cost reduce Eliminate
competitor
Large talent
pool

11. Why do companies merger?
COST REDUCE
By buying out a supplier (vertical merger),
lets a company save on the margins the
supplier was previously adding to its costs.

12. Why do companies merger?
ELIMINATE COMPETITOR
Merger deals allow the acquirer to eliminate
future competition and gain a larger market
share.

13. Why do companies merger?
LARGE TALENT POOL
By combining business activities, overall
performance efficiency tends to increase,
due to the fact that each company takes
advantage of the other company's
strengths, talents.

14. WHY INTERNATIONAL MERGERS OFTEN FAIL

15. Workplace
confrontation
Misunderstanding
business target
Working hours
CULTURAL
IMPACT ON
WORKING
ENVIRONMEN
T

16. WORKPLACE CONFRONTATION
After
merger
Appear cultural conflicts and disagreement
Merger Companies come to terms and cooperation
Before
merger
Being industry competitors

17. MISUNDER
STANDING
BUSINESS
TARGET

18. WORKING HOURS
Asian companies
 Working 8 hours per day
 7:00 am – 5:00 pm
 working long hours a sign of
commitment and achievement
European companies
 Working 6 hours per day and
flexible time
 8:30 am – 4:30 pm
 extra hours a demonstration of
a lack of efficiency or the lack
of priority of family or personal
time.

19. Nokia is a long-standing
multinational corporation
headquartered in Espoo,
Finland, established in 1865

20. Microsoft is an American multinational corporation
headquartered in Redmond, Washington

23. In 2013, the market for tablets, smartphones and handheld
devices is gradually emerging as a new trend in the future.

24. However, all calculations did not go as
expected when Nokia Corporation could not
keep up with the R&D segment compared to
other Smartphone development giants..

26. Choosing more than
one target business
Purpose
+ Getting the accurate information about
targeted enterprise.
+ Having many options and favorable
conditions for M&A.
Method
+ Cooperating with finacial companies (such
as securities companies–công ty chứng
khoán, investment funds-quỹ đầu tư) is the
most effective way.
+Investigating their annual stock index,
revenue,…
26
Securities companies in VN
Investment funds in VN

27. Studying and understanding the
demand and psychology of customers of
the countries or companies which you
aim to.
27

28. ascertaining and obeying the law why merging
28

29. Let’s summarize with us.
29

30. 30
Why international mergers
often fail?
Definition
Mergers
Acquisitions
Reasons
Reducing cost
Low competition
Attracting
talented person
5 Kind of
M&A

31. 31
ed
ers
Reason for
Failure
workplace
confrontation
misunderstanding
business target
working hours
What should do for
success?
Target business
Customers’ demand
Laws