Merger & Acqusition

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A PROJECT REPORT
On

“MERGERS AND ACQUISITIONS- INDIAN SCENARIO”

Submitted to
Faculty of Management Studies
Maharishi Arvind Institute of Engineering and Technology
Mansarovar, Jaipur

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For the partial fulfillment of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2009-2011)
“Seminar on contemporary management issue”

Submitted To: Submitted By:

DEAN SIR Mr. MOSAM PANCHOLI COL. C.D.SHARMA

PREFACE

MBA is the one of the most reputed professional coures in the field of Management.It include theory as well as its practical knowledge. Report on contemporary issue is an integral part of MBA programe, as through this students acquire knowledge of real happenings of the surroundings. So in second semester each student at MAHARISHI ARVIND INSTITUTE OF ENGINEERING & TECHNOLOGY, JAIPUR need to submit a report on contemporary issue.

This knowledge serves the purposes of acquainting the student with economic environment of an organisation in which student have to work hard in future .Only theoretical knowledge is not enough but its practical knowledge is also required to be learned.

I was fortunate enough to have an opportunity of submitting report on the topic Mergers & Acquisitions: An Indian Scenario. In this report,all the important concept relating to merger & acquisition are included, and few examples of real corporate mergers in indian context are also given. I also tried to include a case study for more broader vision.It is hoped that this report will make the readers familiar with the Mergers & Acquisitions and also give the idea about the recent scenario in Indian context. Executive Summary

Merger - It's the most talked about term today creating lot of excitement and speculative activity in the markets. But before Mergers & Acquisitions (M&A) activity speeds up, it has to actually pass through a long chain of procedures (both legal and financial), which at times delays the deal. With the liberalization of the Indian economy in 1991, restrictions on Mergers and Acquisitions have been lowered. The numbers of Mergers and Acquisitions have increased many times in the last decade compared to the slack period of 1970-80s when legal hurdles trimmed the M&A growth. To put things in perspective, from 15 mergers in 1998, the number crossed to over 280 in FY01. With a downturn in the capital markets, valuations have come down to historic lows. It's high time that the consolidation game speeds up. In simple terms, a merger means blending of two or more existing undertakings into one, consequent to which each undertaking would lose their separate identity. The most common reasons for mergers are, operating synergies, market expansion, diversification, growth, consolidation of production capacities and tax savings. However, these are just some of the illustrations and not the exhaustive benefits. However, before the idea of Merger and Acquisition crystallizes, the firm needs to understand its own capabilities and industry position. It also needs to know the same about the other firms it seeks to tie up with, to get a real benefit from a merger. Globalization has increased the competitive pressure in the markets. In a highly challenging environment a strong reason for merger and acquisition is a desire to survive. Thus apart from growth, the survival factor has off late, spurred the merger and acquisition activity worldwide.

Objective of study:
• To discuss the form of mergers and acquisitions.
• To highlight the real motives of merger and acquisitions. • To focus on the considerations those are important in the mergers and acquisitions negotiations. • To find relevant examples to explain Indian take.

• To find the yin yens of mergers & acquitions....
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