Mergers and Acquisitions
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- Mergers and Acquisitions
- What is Mergers and Acquisitions?
- Mergers vs Acquisitions
- Synergy in M&A
- Successful Mergers and Acquisitions
- Financing Acquisitions
- Statutory Merger
- Joint Venture
- White Knight
- Hostile Takeover
- Golden Parachute
- Poison Pills
- What is Amalgamation?
- Spin off vs Split Off
- Forward Integration
- Backward Integration
- Horizontal vs Vertical Integration
- What is Divesting / Divestiture?
- Bootstrap Effect
- PAC MAN Defense
- Flip-In Poison Pill
- Greenshoe Option
- Dawn Raid Takeovers
- Crown Jewels Defense
- Best Mergers and Acquisitions Books
- What is Asset Restructuring?
Overview of Mergers and Acquisitions (M&A)
Mergers and Acquisitions (M&A) is defined as the combination of companies. When one company takes over another company then the term acquisition is used and when the two companies combine together, it is referred to as a merger. In this section, we discuss the basics of Mergers and Acquisitions, its meaning and all you need to know about M&A.
Top resources included in these M&A articles are as follows -
- What are Merger and Acquisition?
- What is the difference between Merger and Acquisition
- How to calculate Synergy in Mergers and Acquisitions (M&A)
- List of Successful M&A
- Options for financing acquisitions.
- What is a Joint Venture?
- Who is a White Knight?
- What is a Hostile Takeover?
- What are poison pills and gold parachute?
- Difference between forward integration and backward integration
- Difference between Spin-off vs Split-off
What is Mergers and Acquisitions?
Mergers and acquisitions (M&A) are defined as a combination of companies. When two companies combine together to form one company, it is termed as Merger of companies. While acquisitions are where one company is taken over by the company.
Mergers vs Acquisitions
Mergers vs Acquisition is corporate strategies aimed at increasing the present capabilities of a company.
Synergy in M&A
Synergy is the concept that allows two or more companies to combine together and either generate more profits or reduce cost together.
Successful Mergers and Acquisitions (M&A)
Like most things in life there is no secret recipe for successful mergers. A well-etched strategy, astute management team and an eye for details is what encapsulates the essence of the successful merger.
Financing Acquisitions is a complex task and requires sound planning.
Statutory merger is a type of merger where one of the companies in the merger gets to keep its own legal entity even after the merger.
When two or more business entities come together to achieve a common purpose, it’s called a joint venture.
A white knight is called a savior. In the battlefield, the white knight appears and saves the population from hostility and violence.
The hostile takeovers is only happen with publicly traded companies. Means it’s only for stocks bought and sold in public bourses.
Usually, companies undergoing merger compensate the top level executives with astronomical amounts and this is known as Golden Parachute.
Naturally, the target companies will not welcome this and design strategies to counter it. While there are various defense mechanisms in place, the most common one is called Poison Pill.
What is Amalgamation?
Amalgamation is nothing but a kind of marriage. Just like in marriage, two individuals come together to form a union, in this, two or more entities come together for carrying out their business activities.
Spin off vs Split Off
Spin-off, the shares of subsidiary company or the company being spun-off is distributed as special dividends by the parent company. Whereas, split-off the parent company gives a Tender offer to its shareholders to exchange their shares for new shares of a subsidiary.
A company can decide to expand its business activities to include control of the direct distribution or supply of the company’s products. This kind of business strategy is known as forward integration.
Backward integration is a form of vertical integration by which the Company integrates its operations with the suppliers or the supply side of the business.
Best Mergers and Acquisitions (M&A) Books
Here we discuss the Top Best Mergers and Acquisitions Books