Chapter 1 Summary and Learning Objective
Part
I
__________________________
The Mergers and
Acquisitions Environment
__________________________
Chapter 1: Introduction to
Mergers and Acquisitions
Chapter Summary and Learning Objectives
The purpose of this chapter is to provide students with an understanding of the underlying dynamics of the M&A process. This includes developing a working knowledge of the relevant vocabulary, the role of various participants in the M&A process, and the various factors affecting M&A activity historically. The chapter also addresses why mergers and acquisitions take place and the common reasons why M&As may fail to achieve expectations.
Chapter 1 Learning Objectives: Providing students with an understanding of
1. What corporate restructuring is and why it occurs;
2. Commonly used M&A vocabulary;
3. Key participants in the M&A process;
4. M&A as only one of a number of strategic options for increasing shareholder value;
5. Common motivations for M&A activity;
6. Historical mergers and acquisitions waves;
7. The Impact of M&A on shareholders and society; and
8. Commonly cited reasons for M&As frequent failure to meet expectations.
Learning Objective 1: Understanding what corporate restructuring is and why it occurs
Corporate Restructuring: This term is a catchall referring to a broad range of activities intended to expand or contract a firm’s basic operations or fundamentally change its asset or financial structure. It is often referred to as either operational or financial restructuring.
Operational restructuring may include the following:
--Downsizing through layoffs or attrition the number of employees required to support specific operations or closing of unprofitable or non-strategic operations;
--The partial or complete divestiture (i.e., sale) or spin-off (i.e., non-taxable transfer of a subsidiary’s stock to parent company shareholders) of a product
I
__________________________
The Mergers and
Acquisitions Environment
__________________________
Chapter 1: Introduction to
Mergers and Acquisitions
Chapter Summary and Learning Objectives
The purpose of this chapter is to provide students with an understanding of the underlying dynamics of the M&A process. This includes developing a working knowledge of the relevant vocabulary, the role of various participants in the M&A process, and the various factors affecting M&A activity historically. The chapter also addresses why mergers and acquisitions take place and the common reasons why M&As may fail to achieve expectations.
Chapter 1 Learning Objectives: Providing students with an understanding of
1. What corporate restructuring is and why it occurs;
2. Commonly used M&A vocabulary;
3. Key participants in the M&A process;
4. M&A as only one of a number of strategic options for increasing shareholder value;
5. Common motivations for M&A activity;
6. Historical mergers and acquisitions waves;
7. The Impact of M&A on shareholders and society; and
8. Commonly cited reasons for M&As frequent failure to meet expectations.
Learning Objective 1: Understanding what corporate restructuring is and why it occurs
Corporate Restructuring: This term is a catchall referring to a broad range of activities intended to expand or contract a firm’s basic operations or fundamentally change its asset or financial structure. It is often referred to as either operational or financial restructuring.
Operational restructuring may include the following:
--Downsizing through layoffs or attrition the number of employees required to support specific operations or closing of unprofitable or non-strategic operations;
--The partial or complete divestiture (i.e., sale) or spin-off (i.e., non-taxable transfer of a subsidiary’s stock to parent company shareholders) of a product