Merger and Acquisition
Introduction
With the accelerated internationalization, a great number of strategies and tactics are adopted by either multinational companies or regional firms in order to obtain global market shares as much as possible. Mergers and Acquisitions (M&A) are one of methods for a corporation to grow and expand its global business. Globally, the value of M&A increased by 19%, up to USD 2.25 trillion in 2010, with amount of USD378 billion contributed by the emerging markets contributed.
(http://www.ibtimes.com/ma-activity-highest-2007-more-predicted-2011-251301)
Some factors, however, such as credit availability, level of volatility and uncertain macro-economy, affect M&A activity levels which have been closely joined with the state of the equity markets.
This essay is to make an introduction of M&A terminology and its types; the reasons and motives for and barriers and limitations against M&A; how to finance M&A; the variety of strategies and tactics adopted by the acquirer and target; a range of corporation valuation techniques related to company consolidation; how M&A activities impact on stakeholders involved; understanding the morale behind a corporation’s choice to divest part of its business and the various routes to divestment. After that, two cases of M&A activities are to be discussed, which explain how the above theoretical knowledge have been achieved in practice. a) Terminology and types of Mergers and Acquisitions (M&A)
In order to achieve certain objectives strategically and financially, two companies, with often essentially differences in corporate personality, cultures and systems of value, are brought together in M&A activity.(Pxiii) Mergers and acquisitions are one of methods for a corporation not only to expand and grow its business, but also are another way to development through capital investment internally or organically.
The M&A parlance include the terms of merger, acquisition and
With the accelerated internationalization, a great number of strategies and tactics are adopted by either multinational companies or regional firms in order to obtain global market shares as much as possible. Mergers and Acquisitions (M&A) are one of methods for a corporation to grow and expand its global business. Globally, the value of M&A increased by 19%, up to USD 2.25 trillion in 2010, with amount of USD378 billion contributed by the emerging markets contributed.
(http://www.ibtimes.com/ma-activity-highest-2007-more-predicted-2011-251301)
Some factors, however, such as credit availability, level of volatility and uncertain macro-economy, affect M&A activity levels which have been closely joined with the state of the equity markets.
This essay is to make an introduction of M&A terminology and its types; the reasons and motives for and barriers and limitations against M&A; how to finance M&A; the variety of strategies and tactics adopted by the acquirer and target; a range of corporation valuation techniques related to company consolidation; how M&A activities impact on stakeholders involved; understanding the morale behind a corporation’s choice to divest part of its business and the various routes to divestment. After that, two cases of M&A activities are to be discussed, which explain how the above theoretical knowledge have been achieved in practice. a) Terminology and types of Mergers and Acquisitions (M&A)
In order to achieve certain objectives strategically and financially, two companies, with often essentially differences in corporate personality, cultures and systems of value, are brought together in M&A activity.(Pxiii) Mergers and acquisitions are one of methods for a corporation not only to expand and grow its business, but also are another way to development through capital investment internally or organically.
The M&A parlance include the terms of merger, acquisition and