merge and aquesition

Topics: Due diligence, Mergers and acquisitions, Project management Pages: 44 (18920 words) Published: October 21, 2014
Synopsis

Mergers and Acquisitions
1. Introduction
Learning Objectives
By the time you have completed this module you should understand: 











what a merger is and how it differs from an acquisition;
some of the reasons why companies merge;
the underlying merger rationales;
what a merger driver is;
what the primary merger drivers are;
the difference between horizontal integration, vertical integration and conglomeration; the basic merger lifecycle and lifecycle phases;
some basic measures of success for mergers;
the difference between long-term and short-term measures of success; the basic scenarios for failure;
the concept of merger waves and the major waves that have occurred since 1900. This module acts as an introduction to the EBS text in Mergers and Acquisitions.

Note that most of the areas discussed in this module are developed in more detail in subsequent modules. This module provides an introduction and overview to some of the main issues and considerations relating to mergers and acquisitions.

Sections
1.1
1.2
1.3
1.4
1.5
1.6

The Concept of Mergers and Acquisitions
Why Companies Merge and Acquire
Integration and Conglomeration
The Merger and Acquisition Lifecycle
Measuring the Success of Mergers and Acquisitions
A Brief History of Mergers and Acquisitions

Learning Summary
The text has considered the following areas that candidates should now be familiar with 





what a merger is and how it differs from an acquisition;
some of the reasons why companies merge;
the underlying merger rationales;
what a merger driver is;
what the primary merger drivers are;








the difference between horizontal integration, vertical integration and conglomeration; the basic merger lifecycle and lifecycle phases;
some basic measures of success for mergers;
the difference between long-term and short-term measures of success; the basic scenarios for failure;
the concept of merger waves and the major waves that have occurred since 1900.

It should be appreciated that mergers and acquisitions are complex high-risk operations. Even very large companies with previous experience of mergers and acquisitions face dangers during the merger/acquisition process, with the probability that the eventual outcome cannot be classified as entirely successful.

In the preceding sections, the text has sought to provide an overview of the key influences. As in most areas of management, there will be exceptions to the general ‘rules‘. However, these tend to be small in numbers.

2. Strategic Focus
Learning Objectives
By the time that you have finished this module you should be familiar with some of the primary drivers behind merger failure, including the:











basic reasons why companies merge and/or acquire;
underlying logic behind the strategic rationale;
concept of strategic alternatives;
concept of national and international regulation;
concept of strategic focus;
idea of aligning focus with performance;
concept and operation of the value chain;
rationale behind the objective of strategic fit;
effects of change and strategic drift;
concept and process of characteristics mapping.

Sections
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9

Introduction
Some Common Questions about Mergers and Acquisitions
Some Common Misconceptions about Mergers and Acquisitions
Business Strategy and Corporate Strategy
National and International Regulators
The Concept of Strategic Focus
Aligning Focus With Performance
Change and Strategic Drift
Characteristics Mapping

Learning Summary
Having studied the text the reader should now be familiar with the: 










basic reasons why companies merge and/or acquire;
underlying logic behind the strategic rationale;
concept of strategic alternatives;
concept of national and international regulation;
concept of strategic focus;
idea of aligning...
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