Mergers and Acquisition Reasons 1. Growth 2. Synergy NAV = PVab – ( PVa + PVb ) – P – E 3. Managerial efficiency 4. Market entry 5. Diversification 6. Tax shields 7. Strategic Some unstated reasons for acquisitions: 1. Megalomania 2. Hubris spirit Forms of Business Combinations 1. Consolidation: result: a new firm e.g. Sandoz + Ciba Geigy = Novartis 2. Merger: result: only one survive e.g. HDFC BK + TIMES BK = HDFC 3. Takeovers: control over mgmt thru substantial portion of its equity. e.g
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The External Environment The external organizational environment includes all elements existing outside the boundary of the organization that have the potential to affect the organization. This environment includes competitors‚ resources‚ technology‚ and economic conditions that influence the organization. The organization external environments are having 2 layers: • General environment: The outer layer that is widely dispersed and affects organization indirectly. It includes
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Foods has decided to grow operations in France‚ the United Kingdom‚ and other regions throughout the globe. The recommended strategies Free Range Foods should consider utilizing in order to strengthen its position in the international market are 1) Merger and Acquisition/ Takeover and 2) Strategic Alliances. Both strategies are effective in obtaining an entry into the desired markets including France‚ the United Kingdom‚ Canada‚ and Eastern Europe. We will outline the advantages and disadvantages
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compared with similar previous mergers in the railroad industry (calculations are attached hereto as Exhibit 2). In terms of the projected merger synergies the CSX-Conrail merger should originate 550 million dollars in the year 2000 and thereafter they should grow at the rate of inflation – 3% (Exhibit 7 case “A”). According with the data in case “A”‚ Exhibit 6‚ this value is in line with both the Santa Fe Pacific merger (560 million dollars) and the Southern Pacific merger (660 million dollars) but it
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Licensing‚ in the business world‚ is a contractual agreement to use a brand name‚ patent or property that is owned by another business entity. For example‚ a greeting card company can obtain a license to use images of Hannah Montana or "The Simpsons" characters on greeting cards. A franchise is a business that operates under an existing brand name. Many popular businesses are franchises‚ including McDonald’s‚ Subway and H&R Block. Franchising & Licensing - What are they? and how can you
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HUMAN RESOURCE MANAGEMENT’s PIVOTAL ROLE in MERGERS & ACQUISITIONS Ajit Kumar Mumbai‚ India Abstract Human Resource Management in Mergers & Acquisitions Organizations of all sizes and across all industry sectors are increasingly looking to M&A to support their global growth strategies. The primary objectives for M&A’s are to cut costs‚ broaden market shares or take advantage of each other’s synergies and most typically to accelerate growth. Yet several studies indicate that more than
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either firm. Describe the types of business combination that might be available for the two firms. Include ideas like merger‚ consolidation‚ acquisition‚ and friendly and hostile takeovers. How would Highland’s management get started? Do the relative sizes of the two firms have any implications for the kinds of combination that are possible or likely? This could be a merger or a consolidation. Because the sizes aren’t too different‚ a consolidation seems most reasonable. Similarly‚ the sizes
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critical decisions The 10 steps to successful M&A integration By Ted Rouse and Tory Frame Ted Rouse is a partner with Bain & Company in Chicago and co-leader of Bain’s Global M&A practice. Tory Frame is a partner in London and leader of London’s Post-Merger Integration and Consumer Products practices. Copyright © 2009 Bain & Company‚ Inc. All rights reserved. Content: Editorial team Layout: Global Design The 10 steps to successful M&A integration Tailor integration to identify value‚ keep the right
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1.What were the possible synergies and forces propelling the merger between P&G and Gillette—as well as the history of other takeover attempts for Gillette? Both P & G and Gillette were established in the early 1900’s and served similar purposes. Gillette and P & G are both strong‚ stable companies and could make an even stronger company. One of the propellers causing the companies to merge was that Gillette sold to men while P & G focused on women in the industry. These companies sell similar
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Soludo has necessitated the need for different organization to engage in corporate Consolidation (mergers and acquisition). The concept of recapitalization refers to the current trend of compelling all commercial banks to raise their capital base from 2billion to 25billion Naira by the Central Bank of Nigeria on or before 31st December 2005. This has sent some of these banks on the move to consider Merger and Acquisition as a survival strategy. WHERE WE WERE BEFORE CONSOLIDATION 89 banks with 3‚382
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