merger and acquisition for mba students .pptx

mergers and aquisition

1. 1. Definition and Types  Merger: Two companies combine to form a new entity, with both companies' shareholders typically becoming shareholders of the new entity. o Horizontal Merger: Companies in the same industry and at the same stage of the producƟon process merge. o VerƟcal Merger: Companies at different stages of the producƟon process merge (e.g., supplier and distributor). o Conglomerate Merger: Companies in unrelated industries merge.  Acquisition: One company (acquirer) purchases another company (target), often through buying its shares or assets. o Friendly AcquisiƟon : Target company agrees to the acquisiƟon . o HosƟle Takeover: Acquirer pursues an acquisiƟon despite resistance from the target's management.