What Is Mergers and Acquisitions
Mergers and Acquisitions
Kyo-Dong Ryo
Instructor Michelle Desaulniers
ENG 3004
Dec 7th 2012
Introduction
In today’s job market, employers are looking for many talented people, due to the constant changes of the business market. In this unstable business market, entrepreneurs are thinking very hard how to survive and make profits. One of the major strategies that entrepreneurs may use in order to get his/her company strong is called Mergers and Acquisitions (M&A). This paper provides basic information, employment outlook, and salaries on the field of M&A.
What is M&A
General Understanding of M&A According to the dictionary, M&A is “a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed” (Investopedia). M&A is a core business of Investment Banking, but then what is Investment Banking?
What is Investment Banking M&A is a core business of Investment Banking, which is a type of financial service that helps companies to acquire funds, grow their portfolios, helps investors to purchase securities, manage financial assets, trade securities, and provide financial advice. Although there are many types of businesses that Investment Banking deals with, M&A is their core business.
Types of M&A Missions M&A can be divided into five parts and each of them has different types of missions and they are: Sell-side, Buy-side, Hostile takeover, Defense, and Fairness options. Mission statement of sell-side is “help to maximize the seller’s profit.” In order to complete the mission, a M&A agent would likely to “raise the interest of potential buyers,” “maximize competition,” and “negotiate.” A M&A agent raise the interest of buyers so that there is a competition. When competition occurs, price would increase and agents would negotiate with buyers who
Kyo-Dong Ryo
Instructor Michelle Desaulniers
ENG 3004
Dec 7th 2012
Introduction
In today’s job market, employers are looking for many talented people, due to the constant changes of the business market. In this unstable business market, entrepreneurs are thinking very hard how to survive and make profits. One of the major strategies that entrepreneurs may use in order to get his/her company strong is called Mergers and Acquisitions (M&A). This paper provides basic information, employment outlook, and salaries on the field of M&A.
What is M&A
General Understanding of M&A According to the dictionary, M&A is “a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed” (Investopedia). M&A is a core business of Investment Banking, but then what is Investment Banking?
What is Investment Banking M&A is a core business of Investment Banking, which is a type of financial service that helps companies to acquire funds, grow their portfolios, helps investors to purchase securities, manage financial assets, trade securities, and provide financial advice. Although there are many types of businesses that Investment Banking deals with, M&A is their core business.
Types of M&A Missions M&A can be divided into five parts and each of them has different types of missions and they are: Sell-side, Buy-side, Hostile takeover, Defense, and Fairness options. Mission statement of sell-side is “help to maximize the seller’s profit.” In order to complete the mission, a M&A agent would likely to “raise the interest of potential buyers,” “maximize competition,” and “negotiate.” A M&A agent raise the interest of buyers so that there is a competition. When competition occurs, price would increase and agents would negotiate with buyers who