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From Wikipedia, the free encyclopedia

"Merger" redirects here. For other uses, see Merge.
"Acquisition" redirects here. For other uses, see Acquisition (disambiguation).
For The Sopranos episode see Mergers and Acquisitions (The Sopranos episode)
.The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.^ Incorporated Mergers and acquisitions IBM buys database security company .
  • Mergers And Acquisitions - Latest Middle East Mergers And Acquisitions Technology News - ITP.net 12 January 2010 7:57 UTC www.itp.net [Source type: General]

 ^ Capabilities that get the deal done Mergers and acquisitions are the centerpiece of our corporate practice.
  • Mergers and Acquisitions - Cox | Smith 12 January 2010 7:57 UTC www.coxsmith.com [Source type: FILTERED WITH BAYES]

 ^ An acquisition is when you buy another business and end up controlling it.

Contents

Acquisition

Main article: Takeover
.An acquisition, also known as a takeover or a buyout or "merger", is the buying of one company (the ‘target’) by another.^ Comments Tags: 3Com Corporation , Channel development , Hewlett-Packard Company Mergers and acquisitions HP buys 3Com for US$2.7 billion .
  • Mergers And Acquisitions - Latest Middle East Mergers And Acquisitions Technology News - ITP.net 12 January 2010 7:57 UTC www.itp.net [Source type: General]

 ^ More and more companies are turning to mergers and acquisitions for faster growth and aggressive expansion.

 ^ The success of an acquisition or merger will hinge upon the selection of the right business to buy or the right company with which to combine.
  • Florida Mergers and Acquisitions 12 January 2010 7:57 UTC www.straza.com [Source type: News]

 .An acquisition may be friendly or hostile.^ Acquisitions may be hostile or friendly.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ The distinguishing features between M&A are that; whereas mergers arise as a result of mutual consent, acquisition may occur as a result of hostile takeovers of the management and operation of the acquired organization.
  • The Menace of Mergers and Acquisition (M&A) - a knol by Osman Masahudu Gunu 12 January 2010 7:57 UTC knol.google.com [Source type: Academic]

 ^ We have been involved in transactions that have been both friendly and hostile, that have involved foreign and domestic participants, and that have employed a myriad of acquisition structures and forms of consideration.
  • Mergers & Acquisitions in Malta : Law Firm CC-Advocates : Malta Due Diligence 12 January 2010 7:57 UTC www.cc-advocates.com [Source type: News]

 .In the former case, the companies cooperate in negotiations; in the latter case, the takeover target is unwilling to be bought or the target's board has no prior knowledge of the offer.^ In other words, the real difference lies in how the purchase is communicated to and received by the target company's board of directors, employees and shareholders.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ The survey found that only four of the 50 transactions surveyed haf been initially rejected by the target company's board of directors after offers were made public.
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.hrmguide.com [Source type: News]

 ^ Takeovers or acquisitions can be friendly, where the management of the company to be acquired negotiates a deal with the acquiring company; or, they can be hostile, where the takeover is made despite opposition by the company's management or an offer is made without prior knowledge by the company's board of directors .
  • Metric:Acquisitions 12 January 2010 7:57 UTC www.wikinvest.com [Source type: General]

 .Acquisition usually refers to a purchase of a smaller firm by a larger one.^ An acquisition usually refers to the purchase of the assets of a company.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ An acquisition, also sometimes called a takeover or buyout , usually involves the takeover of a smaller firm by a larger one.
  • Metric:Acquisitions 12 January 2010 7:57 UTC www.wikinvest.com [Source type: General]

 ^ Usually, one company will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it's technically an acquisition.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 .Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep its name for the combined entity.^ But there are occasions when a smaller firm will obtain the management control of a larger company, and in these cases the smaller acquiring firm will often keep the existing company name and brand in place for the new, combined company.
  • Metric:Acquisitions 12 January 2010 7:57 UTC www.wikinvest.com [Source type: General]

 ^ Sun provides a level of expertise and resources to mid-market firms that were previously only available to much larger companies.
  • Mergers and Acquisitions - Selling Your Business - NJ NY 12 January 2010 7:57 UTC www.sunmerger.com [Source type: News]

 ^ The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.

 This is known as a reverse takeover. .Another type of acquisition is reverse merger, a deal that enables a private company to get publicly listed in a short time period.^ In company acquisitions, one company takes over another.
  • Business Valuations for Company Mergers and Acquisitions 12 January 2010 7:57 UTC www.valuationpro.com [Source type: News]

 ^ This is where a private company will be publicly listed in a short period of time by purchasing a publicly listed shell company.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]

 ^ The course focuses on mergers and acquisitions in the context of private as well as publicly traded companies.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 .A reverse merger occurs when a private company that has strong prospects and is eager to raise financing buys a publicly listed shell company, usually one with no business and limited assets.^ Transfer of the assets and liabilities one company to the other (transfer of business).
  • ITD Hungary - Mergers and acquisitions 12 January 2010 7:57 UTC www.itdh.com [Source type: FILTERED WITH BAYES]

 ^ Publicly traded companies going private...
  • Survey: Mergers and Acquisitions to Rise - Newsroom - Inside INdiana Business with Gerry Dick 12 January 2010 7:57 UTC www.insideindianabusiness.com [Source type: News]

 ^ Saul Ewing's Mergers and Acquisitions Practice Group represents private companies acquiring or selling assets for cash, as well as public companies engaged in merger or acquisition transactions that require extensive securities law advice.
  • Mergers and Acquisitions Law Firm | Saul Ewing, Mid-Atlantic Law Firm 12 January 2010 7:57 UTC www.saul.com [Source type: FILTERED WITH BAYES]
  • Mergers and Acquisitions Law Firm | Saul Ewing, Mid-Atlantic Law Firm 12 January 2010 7:57 UTC www.saul.com [Source type: FILTERED WITH BAYES]

 .Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions were unsuccessful.^ "Various studies have shown that mergers have failure rates of more than 50 percent.

 ^ Mini-case studies: Wärtsilä NSD, Sterling Drug, AOL-Time Warner The distinguishing features of successful and unsuccessful deals Research evidence on which mergers add value, and which destroy value The four sources of acquisition value Case study: The SBC-AT&T Merger .
  • Giddy | NYU "Mergers & Acquisitions" Course 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: Academic]

 ^ However, on average and across the most commonly studied variables, acquiring firms' financial performance does not positively change as a function of their acquisition activity.
  • RwE Growth Partners, Inc. » Mergers and Acquisitions 12 January 2010 7:57 UTC rwegrowthpartners.com [Source type: FILTERED WITH BAYES]

 .June 2009" style="white-space:nowrap;">[citation needed] The acquisition process is very complex, with many dimensions influencing its outcome.^ Over the years, they have guided many clients in a wide range of industries through the complex merger and acquisition process.
  • Anchin :: Mergers and Acquisitions 12 January 2010 7:57 UTC www.anchin.com [Source type: News]

 ^ The 10 biggest tech mergers and acquisitions of 2009 Home News Blogs In Depth Reviews White Papers Newsletters IT Careers .
  • The 10 biggest tech mergers and acquisitions of 2009 12 January 2010 7:57 UTC www.computerworld.com [Source type: News]
  • The 10 biggest tech mergers and acquisitions of 2009 12 January 2010 7:57 UTC www.computerworld.com [Source type: News]

 ^ The complex nature of the merger and acquisition process is driving the need for financial executives knowledgeable in this area.
  • Survey: Mergers and Acquisitions to Rise - Newsroom - Inside INdiana Business with Gerry Dick 12 January 2010 7:57 UTC www.insideindianabusiness.com [Source type: News]

 [1]
.
  • The buyer buys the shares, and therefore control, of the target company being purchased.^ Share purchases - in a share purchase the buyer buys the shares of the target company from the shareholders of the target company.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ A second way to acquire a company is for the buyer to purchase the assets of the targeted company.
    • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

     ^ One way is through the purchase of the shares of the targeted company gaining control over its assets.
    • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

     .Ownership control of the company in turn conveys effective control over the assets of the company, but since the company is acquired intact as a going concern, this form of transaction carries with it all of the liabilities accrued by that business over its past and all of the risks that company faces in its commercial environment.
  • The buyer buys the assets of the target company.^ Remember you are buying the equity or ownership of the target company.
    • Valuations in Mergers Acquisitions 12 January 2010 7:57 UTC www.exinfm.com [Source type: Reference]

     ^ Share purchases - in a share purchase the buyer buys the shares of the target company from the shareholders of the target company.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ Transfer of the assets and liabilities one company to the other (transfer of business).
    • ITD Hungary - Mergers and acquisitions 12 January 2010 7:57 UTC www.itdh.com [Source type: FILTERED WITH BAYES]

     .The cash the target receives from the sell-off is paid back to its shareholders by dividend or through liquidation.^ In simplest form this leaves the target company as an empty shell, and the cash it receives from the acquisition is then paid back to its shareholders by dividend or through liquidation.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ The acquiring company buys the assets of the acquired company, and the cash that the acquired company receives in return is paid to shareholders through a divided or by liquidating the company.
    • Metric:Acquisitions 12 January 2010 7:57 UTC www.wikinvest.com [Source type: General]

     ^ If the buyer purchases all of the assets, the target company is bought with a clean slate and the sell-off cash is given back to the shareholders through liquidation or by dividend.
    • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

     .This type of transaction leaves the target company as an empty shell, if the buyer buys out the entire assets.^ Share purchases - in a share purchase the buyer buys the shares of the target company from the shareholders of the target company.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ Asset purchases - in an asset purchase the buyer buys the assets of the target company from the target company.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ Acquisition occurs when one company, the buyer, purchases the assets or shares of another company, the seller, paying in cash, stock or other assets of value to the seller.
    • ABMI Mergers & Acquisitions Middle Market Division 12 January 2010 7:57 UTC abmikc.com [Source type: News]

     .A buyer often structures the transaction as an asset purchase to "cherry-pick" the assets that it wants and leave out the assets and liabilities that it does not.^ However, one of the advantages of an asset purchase for the buyer is that it can "cherry-pick" the assets that it wants and leave the assets - and liabilities - that it does not.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ The buyer does not want to chance the assumption of unknown liabilities.

     ^ Asset purchases commonly protect the buyer from unforeseen liabilities.

     .This can be particularly important where foreseeable liabilities may include future, unquantified damage awards such as those that could arise from litigation over defective products, employee benefits or terminations, or environmental damage.^ This expertise may involve the participation of our corporate, bankruptcy and business reorganization, antitrust, tax, real estate, environmental and employee benefits practitioners as is necessary.
    • Willkie Farr & Gallagher LLP | Practices | Corporate and Financial Services | Mergers and Acquisitions 12 January 2010 7:57 UTC www.willkie.com [Source type: FILTERED WITH BAYES]

     ^ We draw on attorneys from other practice groups, such as employment , employee benefits , antitrust , environmental , tax , immigration , intellectual property , and real estate , as appropriate to meet the client’s needs.
    • Mergers and Acquisitions | Wyche 12 January 2010 7:57 UTC www.wyche.com [Source type: FILTERED WITH BAYES]

     ^ Together with our colleagues in such specialty areas as environmental law, litigation, employee benefits, taxation and intellectual property, we guide clients through the myriad issues that may arise in a deal, however complex, including structuring and tax planning, securities and regulatory compliance, and negotiating and drafting.
    • Mergers and Acquisitions Attorneys Boston | Tax and Securities Lawyers Boston 12 January 2010 7:57 UTC www.pbl.com [Source type: FILTERED WITH BAYES]

     A disadvantage of this structure is the tax that many jurisdictions, particularly outside the United States, impose on transfers of the individual assets, whereas stock transactions can frequently be structured as like-kind exchanges or other arrangements that are tax-free or tax-neutral, both to the buyer and to the seller's shareholders.
.The terms "demerger", "spin-off" and "spin-out" are sometimes used to indicate a situation where one company splits into two, generating a second company separately listed on a stock exchange.^ A merger is a combination of two companies into one larger company.
  • How Mergers And Acquisitions Affect A Stock 12 January 2010 7:57 UTC thewildinvestor.com [Source type: General]

 ^ One suggestion is to use the principle of separation.
  • TRIZ-enabled Mergers and Acquisitions 12 January 2010 7:57 UTC www.triz-journal.com [Source type: Academic]

 ^ Merger In a merger, two separate companies combine and only one of them survives.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

Distinction between mergers and acquisitions

.Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things.^ Although business mergers and company acquisitions are similar, as they are both a combining of two companies, they are not the same thing.
  • Business Valuations for Company Mergers and Acquisitions 12 January 2010 7:57 UTC www.valuationpro.com [Source type: News]

 ^ The terms "merger" and "acquisition" are often confused and used interchangeably by business and financial executives.
  • ABMI Mergers & Acquisitions Middle Market Division 12 January 2010 7:57 UTC abmikc.com [Source type: News]
  • Mergers and Acquisitions: An Introduction - Entrepreneurship.org 12 January 2010 7:57 UTC www.entrepreneurship.org [Source type: News]

 ^ Mergers and Acquisitions also differ in how each is financed.
  • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

 [2]
.When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition.^ An acquisition, sometimes called a takeover, is the purchase of a target company by another.
  • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

 ^ In company acquisitions, one company takes over another.
  • Business Valuations for Company Mergers and Acquisitions 12 January 2010 7:57 UTC www.valuationpro.com [Source type: News]

 ^ For example, one tool and die company might purchase another.

 .From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.^ From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ Thus, the buying company swallows the business of other company and the other company business ceases to exist.
  • Mergers and Acquisitions Overview - Avvo.com 12 January 2010 7:57 UTC www.avvo.com [Source type: General]

 ^ The San Jose, California-based DPA Law Group represents foreign and domestic purchasers of businesses as well as the target companies that are being purchased.
  • San Jose CA Mergers and Acquisition Attorney | California Buy Sell Business Lawyer 12 January 2010 7:57 UTC www.dpalawyers.com [Source type: FILTERED WITH BAYES]
.In the pure sense of the term, a merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated.^ A merger on the other hand happens when two firms unite into a single company.

 ^ Merger A merger happens when two firms agree to go forward as a single company rather than remain separately owned and operated.

 ^ In contrast a merger is when two firms, often of about the same size, agree to go forward as a single new company.
  • Mergers And Acquisitions Explained | Daily Markets 12 January 2010 7:57 UTC www.dailymarkets.com [Source type: General]

 .This kind of action is more precisely referred to as a "merger of equals". The firms are often of about the same size.^ This kind of action is more precisely referred to as a "merger of equals."
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ Usually, one company will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it's technically an acquisition.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity.
  • Mergers & acquisitions 12 January 2010 7:57 UTC www.deloitte.com [Source type: News]

 .Both companies' stocks are surrendered and new company stock is issued in its place.^ Both companies' stocks are surrendered and new company stock is issued in its place.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ When this happens, the companies involved relinquish their stocks and a new company stock is issued.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]

 ^ They include insights on how to avoid potential cultural issues and maximise the success of the transaction, both from the perspective of the acquirer and from that of the acquired company.
  • Mergers and acquisitions industry insights 12 January 2010 7:57 UTC www.pwc.com [Source type: General]

 .For example, in the 1999 merger of Glaxo Wellcome and SmithKline Beecham, both firms ceased to exist when they merged, and a new company, GlaxoSmithKline, was created.^ In a consolidation, an entirely new firm is created, and the two previous entities cease to exist.

 ^ The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.

 ^ It 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 with no new company being formed.
  • Mergers and Acquisitions by Baron Consultancy Management Consultants 12 January 2010 7:57 UTC www.baronconsultancy.com [Source type: News]
.In practice, however, actual mergers of equals don't happen very often.^ In real life, a merger of equals does not happen very often.

 ^ In practice actual mergers of equals don't happen very often.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ The term is often used to describe a merger of equals, such as that of Daimler-Benz and Chrysler, which was renamed DaimlerChrysler (see case study)....
  • Mergers and Acquisitions Research | Financial resources and articles - QFINANCE 12 January 2010 7:57 UTC www.qfinance.com [Source type: FILTERED WITH BAYES]

 .Usually, one company will buy another and, as part of the deal's terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it is technically an acquisition.^ Incorporated Mergers and acquisitions IBM buys database security company .
  • Mergers And Acquisitions - Latest Middle East Mergers And Acquisitions Technology News - ITP.net 12 January 2010 7:57 UTC www.itp.net [Source type: General]

 ^ A bidding firm can also buy another simply by purchasing all its assets.

 ^ In company acquisitions, one company takes over another.
  • Business Valuations for Company Mergers and Acquisitions 12 January 2010 7:57 UTC www.valuationpro.com [Source type: News]

 .Being bought out often carries negative connotations, therefore, by describing the deal euphemistically as a merger, deal makers and top managers try to make the takeover more palatable.^ Being bought out often carries negative connotations, therefore, by describing the deal as a merger, deal makers and top managers try to make the takeover more palatable.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ The term is often used to describe a merger of equals, such as that of Daimler-Benz and Chrysler, which was renamed DaimlerChrysler (see case study)....
  • Mergers and Acquisitions Research | Financial resources and articles - QFINANCE 12 January 2010 7:57 UTC www.qfinance.com [Source type: FILTERED WITH BAYES]

 ^ We work with you throughout the transaction life cycle, helping you to achieve your strategic objectives across acquisitions, disposals, management buy-outs, buy-ins, fundraisings, Initial Public Offerings, takeovers, mergers and strategic reviews.
  • Mergers and acquisitions - Ernst & Young - Australia 12 January 2010 7:57 UTC www.ey.com [Source type: News]

 .An example of this would be the takeover of Chrysler by Daimler-Benz in 1999 which was widely referred to in the time.^ The 1999 combination of Daimler-Benz and Chrysler to form DaimlerChrysler is an example of a consolidation.
  • Understanding Mergers, Acquisitions, Restructuring, and Investment Banking Terminology - a knol by Donald DePamphilis 12 January 2010 7:57 UTC knol.google.com [Source type: FILTERED WITH BAYES]

 ^ The term is often used to describe a merger of equals, such as that of Daimler-Benz and Chrysler, which was renamed DaimlerChrysler (see case study)....
  • Mergers and Acquisitions Research | Financial resources and articles - QFINANCE 12 January 2010 7:57 UTC www.qfinance.com [Source type: FILTERED WITH BAYES]

 ^ For example, in essence, Exxon acquired Mobil, and Daimler acquired Chrysler.
  • Mergers And Acquisitions Explained | Daily Markets 12 January 2010 7:57 UTC www.dailymarkets.com [Source type: General]
.A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies.^ A purchase deal will be also called a merger when both CEOs mutually agree that merging is in the best interest of their companies.

 ^ A purchase deal will also be called a merger when both CEO s agree that joining together is in the best interest of both of their companies.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ When both CEO’s have agreed in joining together, this is called a merger; however, when the deal is unfriendly, meaning when the company that is being bought does not wish to be purchased, it is regarded as an acquisition.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 .But when the deal is unfriendly - that is, when the target company does not want to be purchased - it is always regarded as an acquisition.^ An acquisition, sometimes called a takeover, is the purchase of a target company by another.
  • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

 ^ An acquisition is the purchase of a company by a larger or smaller company.
  • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

 ^ The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.
.Whether a purchase is considered a merger or an acquisition really depends on whether the purchase is friendly or hostile and how it is announced.^ Mergers and Acquisitions also differ in how each is financed.
  • Mergers and Acquisitions (M&A), clarifying variables, risks, and benefits - Massachusetts 12 January 2010 7:57 UTC georgeandco.com [Source type: News]

 ^ Whether a purchase is considered a merger or an acquisition really depends on whether the purchase is friendly or hostile and how it is announced.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 ^ Whether a merger or acquisition is hostile or friendly, consolidation always means change .
  • Quest IT Leader Shares Plan for Managing Mergers and Acquisitions | Blogs | ITBusinessEdge.com 12 January 2010 7:57 UTC www.itbusinessedge.com [Source type: News]
  • IT as an Impediment to Mergers and Acquisitions | Blogs | ITBusinessEdge.com 12 January 2010 7:57 UTC www.itbusinessedge.com [Source type: General]

 .In other words, the real difference lies in how the purchase is communicated to and received by the target company's board of directors, employees and shareholders.^ Share purchases - in a share purchase the buyer buys the shares of the target company from the shareholders of the target company.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ How should a target company be valued?
  • Giddy | A 3-day workshop on mergers, acquisitions and divestitures 12 January 2010 7:57 UTC giddy.org [Source type: Academic]

 ^ In other words, the real difference lies in how the purchase is communicated to and received by the target company's board of directors, employees and shareholders.
  • Mergers and Acquisitions | WikiJob 12 January 2010 7:57 UTC www.wikijob.co.uk [Source type: News]

 .It is quite normal though for M&A deal communications to take place in a so called 'confidentiality bubble' whereby information flows are restricted due to confidentiality agreements (Harwood, 2005).^ Second, filing requirements in non-US countries are quite different, so information that is available on a deal in the United States may not necessarily be available for deals in other countries.
  • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

 ^ In retrospect, a vertical merger is said to take place when companies are in a so called buyer-seller relationship.
  • Pace University - Lubin School of Business - Mergers and Acquisitions in the 21st Century 12 January 2010 7:57 UTC www.pace.edu [Source type: News]

 ^ The two main purposes of due diligence are to vet whether it’s a good deal and to identify all of the synergies, integration steps and next steps to take after the purchase.
  • Colorado Springs Business Journal » Blog Archive » Mergers and acquisitions slow 12 January 2010 7:57 UTC csbj.com [Source type: News]

Business valuation

The five most common ways to valuate a business are
.
Professionals who valuate businesses generally do not use just one of these methods but a combination of some of them, as well as possibly others that are not mentioned above, in order to obtain a more accurate value.^ It is useful to have an understanding of these different methods.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ This guide outlines the reasons for using these methods to expand a business and the advantages and pitfalls.

 ^ Mergers are those forms of business transactions where there is a combination of two or more companies, and in the process one or more such companies lose their corporate existence because they merge with the surviving entity.
  • Mergers and Acquisitions - International Financial Law Review - India 12 January 2010 7:57 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

 .These values are determined for the most part by looking at a company's balance sheet and/or income statement and withdrawing the appropriate information.^ These attorneys lead a multi-disciplinary team capable of adding significant value to and successfully concluding even the most complex and difficult transactions.
  • Mergers and Acquisitions Practice - Taft Stettinius & Hollister LLP 12 January 2010 7:57 UTC www.taftlaw.com [Source type: Academic]

 ^ PKF Texas: With You Each Step of the Way Securing all or part of a business is one of the most complex strategic moves a middle-market company can make.
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.pkftexas.com [Source type: News]

 ^ It must be understood that the main aim and purpose of all mergers and acquisition is to create and make the value of the combined companies greater than the sum of the two parts.

 .The information in the balance sheet or income statement is obtained by one of three accounting measures: a Notice to Reader, a Review Engagement or an Audit.^ The consolidated statements are prepared by combining the account balances of the individual firms after certain adjusting and eliminating entries are made.

 ^ We assist clients by analyzing financial reporting issues, conducting reviews for accounting compliance and conducting collateral audits/confirmations.
  • Mergers & Acquisitions Services – BDO Consulting Mergers & Acquisitions 12 January 2010 7:57 UTC www.bdoconsulting.com [Source type: News]
.Accurate business valuation is one of the most important aspects of M&A as valuations like these will have a major impact on the price that a business will be sold for.^ Whether you're buying or selling a portfolio or a complete company, it is important to calculate the economic value of the business for your company, or for a third party.
  • Elips Actuary, Mergers and Acquisitions 12 January 2010 7:57 UTC www.elipsactuary.com [Source type: FILTERED WITH BAYES]

 ^ PKF Texas: With You Each Step of the Way Securing all or part of a business is one of the most complex strategic moves a middle-market company can make.
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.pkftexas.com [Source type: News]

 ^ Up to the point in the transaction where the papers are signed, the merger and acquisition business is predominantly financial - valuing the assets, determining the price and due diligence.
  • The Impact of Culture on Mergers & Acquisitions 12 January 2010 7:57 UTC www.itapintl.com [Source type: FILTERED WITH BAYES]

 .Most often this information is expressed in a Letter of Opinion of Value (LOV) when the business is being valuated for interest's sake.^ In a merger or acquisition negotiation, motivated sellers that feel they have few options might try to gain leverage or create interest in their business by sharing business projections and information such as the standalone value calculated by its valuator, with the other party.

 ^ Most often it is a larger company buying a smaller company, but a smaller company can buy out a larger company as well, and will usually keep the larger company's name after the business acquisition.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]

 ^ Those that say “I’ll sell when I get an offer I can’t refuse” will almost never see that happen because most aren’t operating to build business value.
  • MSP Mergers and Acquisitions: Slowing Market? | MSPmentor 12 January 2010 7:57 UTC www.mspmentor.net [Source type: General]

 .There are other, more detailed ways of expressing the value of a business.^ In between, we have companies feeling their way in this immature business and trying various combinations of hardware, software and other options, neither fully positioned vertically nor horizontally.
  • The RFID Weblog: RFID Mergers and Acquisitions 12 January 2010 7:57 UTC www.rfid-weblog.com [Source type: General]

 ^ Are you the owner of a going concern that needs to know more about how to value your business?

 ^ In addition, some businesses find that the best way to grow and compete against larger firms is to merge with or acquire other businesses.

 .These reports generally get more detailed and expensive as the size of a company increases, however, this is not always the case as there are many complicated industries which require more attention to detail, regardless of size.^ Company size is required: Company Size: Select One .
  • mergers and acquisitions - Computerworld Blogs 12 January 2010 7:57 UTC blogs.computerworld.com [Source type: General]

 ^ Note: The Cooper Industries case is long and detailed in many places.
  • The Tuck MBA - Managing Mergers and Acquisitions - Syllabus 12 January 2010 7:57 UTC oracle-www.dartmouth.edu [Source type: FILTERED WITH BAYES]

 ^ However, actual mergers don't take place as is always the case that the company that buys another (which are supposedly equal in strength) will proclaim that the action is a merger when in reality and technically an acquisition.

Financing M&A

.Mergers are generally differentiated from acquisitions partly by the way in which they are financed and partly by the relative size of the companies.^ Mergers are generally differentiated from acquisitions partly by the way in which they are financed and partly by the relative size of the companies.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ Q: Why do companies pursue mergers and acquisitions?
  • Mergers & Acquisitions: Strategies and Outcomes 12 January 2010 7:57 UTC www.sun.com [Source type: FILTERED WITH BAYES]

 ^ Why do Companies use Mergers and Acquisitions?
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 Various methods of financing an M&A deal exist:

Cash

Payment by cash. .Such transactions are usually termed acquisitions rather than mergers because the shareholders of the target company are removed from the picture and the target comes under the (indirect) control of the bidder's shareholders.^ Recent merger and acquisition transactions include: .
  • Eckert Seamans : Practices : Corporate : Mergers & Acquisitions 12 January 2010 7:57 UTC www.eckertseamans.com [Source type: FILTERED WITH BAYES]

 ^ When a company is bought with cash, it is usually an acquisition and not a merger.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 ^ The shareholders of the main company are removed from the picture, and the business is in indirect control of the bidder’s shareholders alone.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

Specialist M&A advisory firms

.Although at present the majority of M&A advice is provided by full-service investment banks, recent years have seen a rise in the prominence of specialist M&A advisers, who only provide M&A advice (and not financing).^ Divestitures - Providing clients who are contemplating divestitures with advice regarding data rooms, relevant rules and procedures, information books, and documenting requests for bids.
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.kelleydrye.com [Source type: Reference]

 ^ Quick access to the most experienced and effective dealmakers--with profiles of over 850 major players, including commercial, merchant and investment banks, business brokers, other M & A intermediaries, and service providers to the M & A industry.
  • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

 ^ Investment Advisers Act of 1940 http://www.law.uc.edu/CCL/InvAdvAct/index.html Provides for the regulation of investment advisors.
  • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

 These companies are sometimes referred to as Transition companies, assisting businesses often referred to as "companies in transition." To perform these services in the US, an advisor must be a licensed broker dealer, and subject to SEC (FINRA) regulation. .More information on M&A advisory firms is provided at corporate advisory.^ Read More Corporate advisory .

 ^ Spektor, Sachs and Company   -  http://www.sscib.com/ a Kiev-based firm providing strategic advisory, corporate finance and acquisition advisory services in NIS and Eastern Europe.
  • Google Directory - Business > Business Services > Consulting > Mergers and Acquisitions 12 January 2010 7:57 UTC www.google.com [Source type: News]

 ^ Understanding Mergers, Acquisitions, and Other Corporate Restructuring Terminology The Role of Holding Companies in Mergers and Acquisitions For more information less more Permanent link to this knol: Link DePamphilis, Donald.
  • The Role of Holding Companies in Mergers and Acquisitions - a knol by Donald DePamphilis 12 January 2010 7:57 UTC knol.google.com [Source type: General]

Motives behind M&A

.The dominant rationale used to explain M&A activity is that acquiring firms seek improved financial performance.^ Third, the use of stock means that the acquired firm will share in any gains from merger; if the merger has a negative NPV, however, then the acquired firm will share in the loss.

 ^ Therefore, the acquiring firm should not use its own cost of capital to value the cash flows of another firm.

 ^ Actimize, provider of anti-fraud solutions for financial firms, announced Monday that it has acquired its biggest competitor, Fortent, for $73.5 million.
  • Mergers & Acquisitions - SC Magazine US 12 January 2010 7:57 UTC www.scmagazineus.com [Source type: News]

 The following motives are considered to improve financial performance:
.
  • Economy of scale: This refers to the fact that the combined company can often reduce its fixed costs by removing duplicate departments or operations, lowering the costs of the company relative to the same revenue stream, thus increasing profit margins.
  • Economy of scope: This refers to the efficiencies primarily associated with demand-side changes, such as increasing or decreasing the scope of marketing and distribution, of different types of products.
  • Increased revenue or market share: This assumes that the buyer will be absorbing a major competitor and thus increase its market power (by capturing increased market share) to set prices.
  • Cross-selling: For example, a bank buying a stock broker could then sell its banking products to the stock broker's customers, while the broker can sign up the bank's customers for brokerage accounts.^ In addition, the hope is that combined companies will allow cost savings and economies-of-scale.

     ^ When two companies sell the same product, but are in different markets, this is called a market-extension merger.
    • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]

     ^ Learn how you can increase network efficiency while reducing costs...
    • Mergers/Acquisitions - CIO.com - Business Technology Leadership 12 January 2010 7:57 UTC www.cio.com [Source type: General]

     .Or, a manufacturer can acquire and sell complementary products.
  • Synergy: For example, managerial economies such as the increased opportunity of managerial specialization.^ Or, a manufacturer can acquire and sell complementary products.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ This also increases revenue and market shares, cross selling, synergy, lowers taxes, increases geographical or other diversifications, and allows for transferring of resources.
    • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
    • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

     ^ While there are many reasons a business would consider an M&A transaction (market expansion, acquiring complementary core competencies, creating opportunities for cross-selling), determining when an acquisition makes good business sense is a critical challenge.
    • TRIZ-enabled Mergers and Acquisitions 12 January 2010 7:57 UTC www.triz-journal.com [Source type: Academic]

     .Another example are purchasing economies due to increased order size and associated bulk-buying discounts.
  • Taxation: A profitable company can buy a loss maker to use the target's loss as their advantage by reducing their tax liability.^ Share purchases - in a share purchase the buyer buys the shares of the target company from the shareholders of the target company.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ Taxes: A profitable company can buy a loss maker to use the target's tax write-offs .
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ For example, one tool and die company might purchase another.

     .In the United States and many other countries, rules are in place to limit the ability of profitable companies to "shop" for loss making companies, limiting the tax motive of an acquiring company.
  • Geographical or other diversification: This is designed to smooth the earnings results of a company, which over the long term smoothens the stock price of a company, giving conservative investors more confidence in investing in the company.^ This helps smooth the earnings results of a company, which over the long term, is rewarded by a higher share price.
    • Mergers And Acquisitions Explained | Daily Markets 12 January 2010 7:57 UTC www.dailymarkets.com [Source type: General]

     ^ Geographical or other diversification: This is designed to smooth the earnings results of a company, which over the long term smoothens the stock price of a company, giving conservative investors more confidence in investing in the company.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     ^ And, they are more willing to acquire stock, which solves the tax issue.

     .However, this does not always deliver value to shareholders (see below).
  • Resource transfer: resources are unevenly distributed across firms (Barney, 1991) and the interaction of target and acquiring firm resources can create value through either overcoming information asymmetry or by combining scarce resources.^ Value through Information .
    • Valuations in Mergers Acquisitions 12 January 2010 7:57 UTC www.exinfm.com [Source type: Reference]

     ^ It’s a function of where we were seeing value being created.
    • Liveblogging OnDC ‘09: Mergers and Acquisitions Panel | Paul Allen (the lesser) 12 January 2010 7:57 UTC www.paulallen.net [Source type: General]

     ^ Resource transfer: resources are unevenly distributed across firms and the interaction of target and acquiring firm resources can create value through either overcoming information asymmetry or by combining scarce resources.
    • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

     [3]
    • .
  • Vertical integration: Vertical integration occurs when an upstream and downstream firm merge (or one acquires the other).^ The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.

     ^ Within one year of the merger, the successor firm was approached by a larger regional firm (Firm I), and the management team elected to merge.

     ^ Either of these companies can acquire the other, but a merger—no,” says one CPA. .

     There are several reasons for this to occur. One reason is to internalise an externality problem. A common example is of such an externality is double marginalization. .Double marginalization occurs when both the upstream and downstream firms have monopoly power, each firm reduces output from the competitive level to the monopoly level, creating two deadweight losses.^ More than two dozen M&A deals have taken place between US PR firms since the beginning of the year, with more than half of those occurring from June on.
    • Mergers And Acquisitions - PRWeek US 12 January 2010 7:57 UTC www.prweekus.com [Source type: News]

     ^ Some experts claimed that these enormous deals would reduce competition by creating highly consolidated industries controlled by a few major players.

     ^ Under these standards, the Board may not approve a proposal that would result in a monopoly or that may substantially lessen competition or tend to create a monopoly in a particular market.
    • FRB: Testimony, Meyer -- Mergers and acquisitions in banking and other financial services -- June 3, 1998 12 January 2010 7:57 UTC www.federalreserve.gov [Source type: FILTERED WITH BAYES]

     .By merging the vertically integrated firm can collect one deadweight loss by setting the upstream firm's output to the competitive level.^ Consequently, one needs to collect every seemingly important speck of the firm capturing story and conclude accordingly as to whether the activities were successfully implemented or not.
    • Mergers and Acquisitions Balanced Scorecard (BSC) Metrics (KPI) Template for Excel 12 January 2010 7:57 UTC www.strategy2act.com [Source type: FILTERED WITH BAYES]

     ^ Within one year of the merger, the successor firm was approached by a larger regional firm (Firm I), and the management team elected to merge.

     ^ November 9, 2009 Two Florida accounting firms — Proctor, Crook & Crowder and Fogal & Associates — have merged to form one of the largest firms on the state’s Treasure Coast.
    • Mergers and Acquisitions 12 January 2010 7:57 UTC www.webcpa.com [Source type: News]
    • Mergers and Acquisitions 12 January 2010 7:57 UTC www.webcpa.com [Source type: News]

     This increases profits and consumer surplus. .A merger that creates a vertically integrated firm can be profitable.^ There is clearly a trade-off between achieving the safety a de-merger clause creates and the risk that the ability to have an out will lead to slow integration of the two firms.

     ^ Vertical mergers are those in which the two firms participate at different stages of the production or value chain.
    • Understanding Mergers, Acquisitions, Restructuring, and Investment Banking Terminology - a knol by Donald DePamphilis 12 January 2010 7:57 UTC knol.google.com [Source type: FILTERED WITH BAYES]

     ^ This year, the firm was involved in the creation of the Nordvand Group by way of merger, and advised the Karsten Ree Group on the sale of Den Blå Avis to eBay.
    • Mergers and acquisitions - Denmark - IFLR1000 12 January 2010 7:57 UTC iflr1000.com [Source type: News]

     [4]
.However, on average and across the most commonly studied variables, acquiring firms' financial performance does not positively change as a function of their acquisition activity.^ Internally, managers of acquiring firms report that only 56% of their acquisitions can be considered successful against the original objectives set for them.” (Cartwright & Schoenberg, 2006 p.
  • The Menace of Mergers and Acquisition (M&A) - a knol by Osman Masahudu Gunu 12 January 2010 7:57 UTC knol.google.com [Source type: Academic]

 ^ Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases and Solutions by Donald DePamphilis Most books on mergers and acquisitions focus on process management, human resource management, or the financial aspects of the deal.
  • Mergers and Acquisitions - Strategy - Management Portal 12 January 2010 7:57 UTC www.themanager.org [Source type: FILTERED WITH BAYES]

 ^ She focuses primarily on mergers and acquisitions, representing public and private companies from various industries as well as investment banks and venture capital firms.
  • Leveraging Section 363 in Mergers and Acquisitions | CLE Webinar/Teleconference | Strafford 12 January 2010 7:57 UTC www.straffordpub.com [Source type: FILTERED WITH BAYES]

 [5] Therefore, additional motives for merger and acquisition that may not add shareholder value include:
  • Diversification: While this may hedge a company against a downturn in an individual industry it fails to deliver value, since it is possible for individual shareholders to achieve the same hedge by diversifying their portfolios at a much lower cost than those associated with a merger.
  • Manager's hubris: manager's overconfidence about expected synergies from M&A which results in overpayment for the target company.
  • Empire-building: Managers have larger companies to manage and hence more power.
  • Manager's compensation: In the past, certain executive management teams had their payout based on the total amount of profit of the company, instead of the profit per share, which would give the team a perverse incentive to buy companies to increase the total profit while decreasing the profit per share (which hurts the owners of the company, the shareholders); although some empirical studies show that compensation is linked to profitability rather than mere profits of the company.

Effects on management

.A study published in the July/August 2008 issue of the Journal of Business Strategy suggests that mergers and acquisitions destroy leadership continuity in target companies’ top management teams for at least a decade following a deal.^ Depending on the business deal, the merger and acquisition can be either complex or straightforward.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 ^ Relevant issues in relation to mergers and acquisitions .
  • Mergers and Acquisitions - International Financial Law Review - India 12 January 2010 7:57 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

 ^ Millimeter July/August 2008 .

 .The study found that target companies lose 21 percent of their executives each year for at least 10 years following an acquisition – more than double the turnover experienced in non-merged firms.^ In a subsidiary merger, an acquirer incorporates an acquisition subsidiary and merges it with the target company.

 ^ In simplest form this leaves the target company as an empty shell, and the cash it receives from the acquisition is then paid back to its shareholders by dividend or through liquidation.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ The survey found that only four of the 50 transactions surveyed haf been initially rejected by the target company's board of directors after offers were made public.
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.hrmguide.com [Source type: News]

 [6]

The Great Merger Movement

.The Great Merger Movement was a predominantly U.S. business phenomenon that happened from 1895 to 1905. During this time, small firms with little market share consolidated with similar firms to form large, powerful institutions that dominated their markets.^ During the years of 1895 and 1905, there were small firms that had little markets that began to consolidate with like firms to form larger, more powerful institutions that dominated their markets.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 ^ Up to the point in the transaction where the papers are signed, the merger and acquisition business is predominantly financial - valuing the assets, determining the price and due diligence.
  • The Impact of Culture on Mergers & Acquisitions 12 January 2010 7:57 UTC www.itapintl.com [Source type: FILTERED WITH BAYES]

 ^ The Firm's attorneys represent clients in friendly and unfriendly tender offers, leveraged buy-outs, stock and asset acquisitions and divestitures, mergers and other forms of business combinations.
  • http://www.balch.com/mergers/ 12 January 2010 7:57 UTC www.balch.com [Source type: Academic]

 .It is estimated that more than 1,800 of these firms disappeared into consolidations, many of which acquired substantial shares of the markets in which they operated.^ "They are suffering more than any other firm."
  • Mergers and acquisitions - Denmark - IFLR1000 12 January 2010 7:57 UTC iflr1000.com [Source type: News]

 ^ "They are suffering more than any other firm....
  • Mergers and acquisitions - Denmark - IFLR1000 12 January 2010 7:57 UTC iflr1000.com [Source type: News]

 ^ To secure their investment, purchasing organizations must quickly take inventory of the acquired companys information assets, gain visibility into where these assets are stored, find out who has access to them and make sure they are secure.
  • How to Protect Data During Financial Mergers and Acquisitions - Security from eWeek 12 January 2010 7:57 UTC www.eweek.com [Source type: General]

 The vehicle used were so-called trusts. .To truly understand how large this movement was—in 1900 the value of firms acquired in mergers was 20% of GDP.^ Resource transfer: resources are unevenly distributed across firms and the interaction of target and acquiring firm resources can create value through either overcoming information asymmetry or by combining scarce resources.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ View all Mergers and Acquisitions professionals Baker Botts has ranked nationally in the top 20 law firms in mergers and acquisitions for more than five years.
  • Baker Botts L.L.P. | Corporate | Mergers and Acquisitions 12 January 2010 7:57 UTC www.bakerbotts.com [Source type: FILTERED WITH BAYES]

 ^ An understanding of pre- and post-merger valuation analysis is required to avoid this pitfall.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 .In 1990 the value was only 3% and from 1998–2000 it was around 10–11% of GDP. Organizations that commanded the greatest share of the market in 1905 saw that command disintegrate by 1929 as smaller competitors joined forces with each other.^ This also increases revenue and market shares, cross selling, synergy, lowers taxes, increases geographical or other diversifications, and allows for transferring of resources.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]

 ^ Improved information sharing can aid executive-level decision making when it comes to commercially sensitive areas such as commercial marketing-and-trading portfolios, performance improvements, and other unregulated business-planning and organizational decisions.
  • Utility Mergers and Acquisitions: Beating the Odds | mThink.com 12 January 2010 7:57 UTC www.mthink.com [Source type: FILTERED WITH BAYES]

 ^ We have a point of view of our market share, we have a point of view about systems and customer service operations, and so what comes out is that the organization who is acquiring the other organization is imposing everything on the company they’re buying.
  • Managing through Mergers and Acquisitions Transcript 12 January 2010 7:57 UTC www.ieconsulting.biz [Source type: General]

 .However, there were companies that merged during this time such as DuPont, US Steel, and General Electric that have been able to keep their dominance in their respected sectors today due to growing technological advances of their products, patents, and brand recognition by their customers.^ Similar problems are being faced by the steel industry due to fragmentation of capacity); and (iv) sectors where the need for high technology is becoming very important (such as the telecommunications and pharmaceutical sectors).
  • Mergers and Acquisitions - International Financial Law Review - India 12 January 2010 7:57 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

 ^ Usually mergers occur in a friendly setting where executives from the respective companies participate in a due diligence process to ensure a successful combination of all parts.

 ^ During the years of 1895 and 1905, there were small firms that had little markets that began to consolidate with like firms to form larger, more powerful institutions that dominated their markets.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 .The companies that merged were mass producers of homogeneous goods that could exploit the efficiencies of large volume production.^ If we can meld the program management and system integration capabilities of these large defense contractors with the new areas of government spending, it could be a good thing for the country.
  • Liveblogging OnDC ‘09: Mergers and Acquisitions Panel | Paul Allen (the lesser) 12 January 2010 7:57 UTC www.paulallen.net [Source type: General]

 ^ When companies are merged, they will be able to grow and combine their abilities for the products or services they provide at a cost that the consumer can afford, benefiting both in the end.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 ^ When two merging companies are of the same industry and produce similar products, this is called a horizontal merger.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 .However more often than not mergers were "quick mergers". These "quick mergers" involved mergers of companies with unrelated technology and different management.^ The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.

 ^ View all Mergers and Acquisitions professionals Baker Botts has ranked nationally in the top 20 law firms in mergers and acquisitions for more than five years.
  • Baker Botts L.L.P. | Corporate | Mergers and Acquisitions 12 January 2010 7:57 UTC www.bakerbotts.com [Source type: FILTERED WITH BAYES]

 ^ It must be understood that the main aim and purpose of all mergers and acquisition is to create and make the value of the combined companies greater than the sum of the two parts.

 .As a result, the efficiency gains associated with mergers were not present.^ Since mergers and acquisitions are so complex, however, it can be very difficult to evaluate the transaction, define the associated costs and benefits, and handle the resulting tax and legal issues.

 ^ The gain from the merger is the present value of this difference in cash flows.

 .The new and bigger company would actually face higher costs than competitors because of these technological and managerial differences.^ Acquisitions are slightly different from mergers in the sense that there is no exchange of stock or consolidation as a new company.

 ^ At the end of the day, a company is acquired because it owns a particular asset, whether it’s market share, a new product, distribution channels, etc.
  • Mergers and Acquisitions (Part 1) 12 January 2010 7:57 UTC www.investmentu.com [Source type: General]

 ^ They should also avoid deals that require new state-level legislation, because too much time will be required to negotiate and close these complex deals.
  • Utility Mergers and Acquisitions: Beating the Odds | mThink.com 12 January 2010 7:57 UTC www.mthink.com [Source type: FILTERED WITH BAYES]

 .Thus, the mergers were not done to see large efficiency gains, they were in fact done because that was the trend at the time.^ They should also avoid deals that require new state-level legislation, because too much time will be required to negotiate and close these complex deals.
  • Utility Mergers and Acquisitions: Beating the Odds | mThink.com 12 January 2010 7:57 UTC www.mthink.com [Source type: FILTERED WITH BAYES]

 ^ While these mergers may increase national or state concentration, they do not tend to increase concentration in local banking markets and thus do not reduce competition.
  • FRB: Testimony, Meyer -- Mergers and acquisitions in banking and other financial services -- June 3, 1998 12 January 2010 7:57 UTC www.federalreserve.gov [Source type: FILTERED WITH BAYES]

 ^ So the coaching really has to acknowledge the fact that yes change occurs for different people at different times and some people are going to get stuck in company A and they don’t want to leave.
  • Managing through Mergers and Acquisitions Transcript 12 January 2010 7:57 UTC www.ieconsulting.biz [Source type: General]

 .Companies which had specific fine products, like fine writing paper, earned their profits on high margin rather than volume and took no part in Great Merger Movement.^ Also, companies are being forced to slash prices on computers and related equipment to compete with cheaper products being produced in low-cost economies like China.
  • Technology Mergers and Acquisitions: Coming Back to Life - TIME 12 January 2010 7:57 UTC www.time.com [Source type: News]

 ^ Usually mergers occur in a friendly setting where executives from the respective companies participate in a due diligence process to ensure a successful combination of all parts.

 ^ Profit margins, rather than the needs and aspirations of groups and individuals, determine what is produced and exhibited.
  • MERGERS AND ACQUISITIONS - The Museum of Broadcast Communications 12 January 2010 7:57 UTC museum.tv [Source type: General]

 [citation needed]

Short-run factors

.One of the major short run factors that sparked in The Great Merger Movement was the desire to keep prices high.^ To compete successfully, you must keep up with current movements of mergers and acquisitions advisors and the news they make.
  • Mergers and Acquisitions (M&A): Companies and Services | Business.com 12 January 2010 7:57 UTC www.business.com [Source type: News]

 ^ With the accretive merger, the company with a high price to earnings ratio (P/E) acquires one with a low P/E. When a company that has a low P/E acquires a company with a high P/E, this is called a dilutive merger and the company's EPS decreases.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.ffsc-chamber.com [Source type: News]

 ^ Trade Takeover Stocks With Merger Arbitrage - This high-risk strategy attempts to profit from price discrepancies that arise during acquisitions.
  • Mergers And Acquisitions (M&A) 12 January 2010 7:57 UTC www.investopedia.com [Source type: General]

 .That is, with many firms in a market, supply of the product remains high.^ First, many mergers are between firms operating primarily in different local banking markets.
  • FRB: Testimony, Meyer -- Mergers and acquisitions in banking and other financial services -- June 3, 1998 12 January 2010 7:57 UTC www.federalreserve.gov [Source type: FILTERED WITH BAYES]

 ^ The market was booming and many firms were completely focused on lucrative M&A deals.
  • Mergers and acquisitions - Denmark - IFLR1000 12 January 2010 7:57 UTC iflr1000.com [Source type: News]

 ^ Many of the firms involved were likely limited in their ability to access, consolidate and certify data across the high volume of information firm-wide.
  • Dealmakers: The CIO Role in Mergers and Acquisitions - Accounting and Finance 12 January 2010 7:57 UTC www.cioinsight.com [Source type: General]

 During the panic of 1893, the demand declined. When demand for the good falls, as illustrated by the classic supply and demand model, prices are driven down. .To avoid this decline in prices, firms found it profitable to collude and manipulate supply to counter any changes in demand for the good.^ Companies should also integrate supply chain capabilities that can adapt to demand changes or supply disruptions that may occur as a result of the merger.
  • Unleashing supply chain value in mergers and acquisitions - 2007-01-01 07:00:00 | Logistics Management 12 January 2010 7:57 UTC www.logisticsmgmt.com [Source type: FILTERED WITH BAYES]

 This type of cooperation led to widespread horizontal integration amongst firms of the era. .Focusing on mass production allowed firms to reduce unit costs to a much lower rate.^ Acquisitions can be justified in terms of the competitive advantages they produce (for example, marketing positions may be strengthened or production costs reduced).
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ My take : American Express purchased a platform they hope will allow it to get various new features/products to market faster and at lower costs to help head off total online-POS domination by PayPal.
  • NetBanker: Mergers & Acquisitions Archives 12 January 2010 7:57 UTC www.netbanker.com [Source type: News]

 ^ Conservative estimates of the cost reductions resulting from synergies are made to reduce the risk of giving away too much in regulatory negotiations.
  • Utility Mergers and Acquisitions: Beating the Odds | mThink.com 12 January 2010 7:57 UTC www.mthink.com [Source type: FILTERED WITH BAYES]

 .These firms usually were capital-intensive and had high fixed costs.^ Acquiring firms may be able to more efficiently utilize working capital and fixed assets in the target firm, thereby reducing capital requirements and enhancing profitability.

 ^ Therefore, the acquiring firm should not use its own cost of capital to value the cash flows of another firm.

 .Because new machines were mostly financed through bonds, interest payments on bonds were high followed by the panic of 1893, yet no firm was willing to accept quantity reduction during that period.^ Moreover, the firm has adopted techniques used in other contexts for new purposes, including interest rate swaps for long-term financing of leased facilities and employee stock ownership plans (ESOPs) for acquisitions and financings.
  • Eckert Seamans : Practices : Corporate : Mergers & Acquisitions 12 January 2010 7:57 UTC www.eckertseamans.com [Source type: FILTERED WITH BAYES]

 ^ Moreover, because most of the major participants in the giant new merged media corporations also have international interests, critics point to the possibility of a reduction in cultural diversity, forms of expression, and dissemination of information on a global scale.
  • MERGERS AND ACQUISITIONS - The Museum of Broadcast Communications 12 January 2010 7:57 UTC museum.tv [Source type: General]

 ^ While the use of financial leverage produces tax benefits, debt also increases the likelihood of financial distress in the event that the acquiring firm cannot meet its interest payments on the acquisition debt.

 [citation needed]

Long-run factors

.In the long run, due to the desire to keep costs low, it was advantageous for firms to merge and reduce their transportation costs thus producing and transporting from one location rather than various sites of different companies as in the past.^ The cost of debt can often be reduced when two firms merge.

 ^ The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.

 ^ Exxon’s been long rumored to be in the market for a natural gas company, hoping to take advantage of currently low prices, the Wall Street Journal reports.
  • mergers and acquisitions – News Stories About mergers and acquisitions - Page 1 | Newser 12 January 2010 7:57 UTC www.newser.com [Source type: General]

 This resulted in shipment directly to market from this one location. .In addition, technological changes prior to the merger movement within companies increased the efficient size of plants with capital intensive assembly lines allowing for economies of scale.^ Economies of scale: This refers to the fact that the combined company can often reduce duplicate departments or operations, lowering the costs of the company relative to theoretically the same revenue stream, thus increasing profit.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ A merger of equals is a merger framework usually applied whenever the merger participants are comparable in size, competitive position, profitability, and market capitalization.
  • Understanding Mergers, Acquisitions, Restructuring, and Investment Banking Terminology - a knol by Donald DePamphilis 12 January 2010 7:57 UTC knol.google.com [Source type: FILTERED WITH BAYES]

 ^ The deals could extend the companies' triumphant runs: more likely, the great increase in size and the complications of any acquisition will offset some, if not all, of the benefits.

 Thus improved technology and transportation were forerunners to the Great Merger Movement. .In part due to competitors as mentioned above, and in part due to the government, however, many of these initially successful mergers were eventually dismantled.^ With the market as hot as ever, successful firms share their best practices for pre-merger due diligence Read more .
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.webcpa.com [Source type: News]
  • Mergers and Acquisitions 12 January 2010 7:57 UTC www.webcpa.com [Source type: News]

 ^ Usually mergers occur in a friendly setting where executives from the respective companies participate in a due diligence process to ensure a successful combination of all parts.

 ^ These are examples of changes that, if implemented too soon after a merger, can hurt its overall success.

 The U.S. government passed the Sherman Act in 1890, setting rules against price fixing and monopolies. .Starting in the 1890s with such cases as U.S. versus Addyston Pipe and Steel Co., the courts attacked large companies for strategizing with others or within their own companies to maximize profits.^ In some cases, the revival plan may include the merger of the sick company with any other company or vice versa.
  • Mergers and Acquisitions - International Financial Law Review - India 12 January 2010 7:57 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

 ^ Also critical to the assessment are the noneconomic aspects of the deal, such as headquarters sharing, potential loss of key personnel and potential paralysis of the company (for example, when a merger or acquisition freezes a company's ability to pursue M&A and other large initiatives for two years).
  • Utility Mergers and Acquisitions: Beating the Odds | mThink.com 12 January 2010 7:57 UTC www.mthink.com [Source type: FILTERED WITH BAYES]

 ^ Timelines, rankings, strategies, and deal profiles will allow you to maximize the benefits and growth opportunities of a deal: Understand the M&A environment Learn what is driving the acquisition strategies of top companies - and how other organizations are seeking suitors for their own sales.
  • Pharmaceutical Mergers and Acquisitions 12 January 2010 7:57 UTC www.bharatbook.com [Source type: News]
  • Pharmaceutical Mergers and Acquisitions - Business Market Research Reports 12 January 2010 7:57 UTC www.aarkstore.com [Source type: News]

 .Price fixing with competitors created a greater incentive for companies to unite and merge under one name so that they were not competitors anymore and technically not price fixing.^ Mergers are those forms of business transactions where there is a combination of two or more companies, and in the process one or more such companies lose their corporate existence because they merge with the surviving entity.
  • Mergers and Acquisitions - International Financial Law Review - India 12 January 2010 7:57 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

 ^ It must be understood that the main aim and purpose of all mergers and acquisition is to create and make the value of the combined companies greater than the sum of the two parts.

 ^ US clinical trial review groups Independent Review Consulting (IRC) and Ethical Review Committee (ERC) are to merge and operate under the name Ethical and Independent Review Services (E&I).
  • Mergers & Acquisitions News - Congoo 12 January 2010 7:57 UTC www.congoo.com [Source type: News]

Merger waves

The economic history has been divided into Merger Waves based on the merger activities in the business world as:
Period Name Facet
1889 - 1904 First Wave Horizontal mergers
1916 - 1929 Second Wave Vertical mergers
1965 - 1989 Third Wave Diversified conglomerate mergers
1992 - 1998 Fourth Wave Congeneric mergers; Hostile takeovers; Corporate Raiding
2000 - Fifth Wave Cross-border mergers

Cross-border M&A

.In a study conducted in 2000 by Lehman Brothers, it was found that, on average, large M&A deals cause the domestic currency of the target corporation to appreciate by 1% relative to the acquirers.^ In 2000, Lehman Brothers did a study, and they found that the corporation appreciated by 1% after the mergers.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 ^ We find that merged banks experience a statistically significant 16 percentage point average increase in profit-efficiency rank relative to other large banks.
  • Mergers and Acquisitions - Strategy - Management Portal 12 January 2010 7:57 UTC www.themanager.org [Source type: FILTERED WITH BAYES]

 ^ A collection of case studies on approximately 293 "high profile" corporate acquisitions, buyouts, mergers, and takeovers from 1868 to early 2000.
  • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]
.The rise of globalization has exponentially increased the market for cross border M&A. In 1997 alone there were over 2333 cross border transactions worth a total of approximately $298 billion.^ Cross-border transactions.
  • The Tuck MBA - Structuring Mergers and Acquisitions - Syllabus 12 January 2010 7:57 UTC oracle-www.dartmouth.edu [Source type: FILTERED WITH BAYES]

 ^ This also increases revenue and market shares, cross selling, synergy, lowers taxes, increases geographical or other diversifications, and allows for transferring of resources.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 ^ While there are many reasons a business would consider an M&A transaction (market expansion, acquiring complementary core competencies, creating opportunities for cross-selling), determining when an acquisition makes good business sense is a critical challenge.
  • TRIZ-enabled Mergers and Acquisitions 12 January 2010 7:57 UTC www.triz-journal.com [Source type: Academic]

 .This rapid increase has taken many M&A firms by surprise because the majority of them never had to consider acquiring Due to the complicated nature of cross border M&A, the vast majority of cross border actions have unsuccessful anies seek to expand their global footprint and become more agile at creating high-performing businesses and cultures across national boundaries.^ We guide domestic and foreign clients in leveraged buyouts, spinoffs, cross-border transactions, deals involving troubled businesses and related-party transactions.
  • Mergers & Acquisitions - Davis Wright Tremaine 12 January 2010 7:57 UTC www.dwt.com [Source type: News]

 ^ Control of concentrations: a transferor company was considered to have acquired joint control of the transferred company because of specific rights and close commercial agreements ...
  • The Legal 500 2009: Europe, Middle East & Africa > France > Mergers and acquisitions recommended Law firms, Lawyers 12 January 2010 7:57 UTC www.legal500.com [Source type: News]
  • The Legal 500 2009: Europe, Middle East & Africa > France > Mergers and acquisitions recommended Law firms, Lawyers 12 January 2010 7:57 UTC www.legal500.com [Source type: News]

 ^ This database contains data collected by the United Nations Conference on Trade and Development (UNCTAD) on cross-border M&A's.
  • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

 [7]
.Even mergers of companies with headquarters in the same country are very much of this type (cross-border Mergers).^ Macroeconomic Aspects of Global M&A Financing "The "purely" domestic deal?involving two companies located entirely in the same country and financed entirely by local sources?is becoming an anachronism.
  • Financial Considerations of Mergers and Acquisitions,mergers acquisitions,shareholder value,due diligence,acquisition risks,acquisition search,financial projections,financing needs,leveraged buyouts 12 January 2010 7:57 UTC www.financeandprofitabilitybooks.com [Source type: News]

 ^ Diversification: While this may hedge a company against a downturn in an individual industry it fails to deliver value, since it is possible for individual shareholders to achieve the same hedge by diversifying their portfolios at a much lower cost than those associated with a merger.
  • Giddy | Introduction to Mergers & Acquisitions 12 January 2010 7:57 UTC pages.stern.nyu.edu [Source type: FILTERED WITH BAYES]

 ^ When two merging companies are of the same industry and produce similar products, this is called a horizontal merger.
  • Mergers And Acquisitions - mergers and acquisitions, M&A, business acquisitions, merger and acquisition, business mergers and acquisitions, merger & acquisition, mergers & acquisitions 12 January 2010 7:57 UTC guides.wkbw.com [Source type: News]

 .After all,when Boeing acquires McDonnell Douglas, the two American companies must integrate operations in dozens of countries around the world.^ Macroeconomic Aspects of Global M&A Financing "The "purely" domestic deal?involving two companies located entirely in the same country and financed entirely by local sources?is becoming an anachronism.
  • Financial Considerations of Mergers and Acquisitions,mergers acquisitions,shareholder value,due diligence,acquisition risks,acquisition search,financial projections,financing needs,leveraged buyouts 12 January 2010 7:57 UTC www.financeandprofitabilitybooks.com [Source type: News]

 ^ Covers current deals in every sector, from all around the world.
  • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

 ^ The company declined to disclose the number of cardholders, but mentioned that each of its dozen marketing partnerships had brought in two or three thousand good cardholders.
  • NetBanker: Mergers & Acquisitions Archives 12 January 2010 7:57 UTC www.netbanker.com [Source type: News]

 .This is just as true for other supposedly "single country" mergers, such as the $29 billion dollar merger of Swiss drug makers Sandoz and Ciba-Geigy (now Novartis).^ A merger on the other hand happens when two firms unite into a single company.

 ^ True to the most optional form of this type of transaction, the merger agreement caps Mars’ maximum liability at $1 billion and bars specific performance.
  • Above the Law - A Legal Tabloid - News, Gossip, and Colorful Commentary on Law Firms and the Legal Profession - Mergers and Acquisitions 12 January 2010 7:57 UTC abovethelaw.com [Source type: News]

 ^ In case you've had your head in a cave all winter, the retail industry is spitting billion-dollar mergers, and more may be coming.
  • Mergers and Acquisitions: News & Videos about Mergers and Acquisitions - CNN.com 12 January 2010 7:57 UTC topics.cnn.com [Source type: News]

Major M&A in the 1990s

.Top 10 M&A deals worldwide by value (in mil.^ Canadian firm in Worldwide Completed Deals by deal value No.
  • Mergers & Acquisitions 12 January 2010 7:57 UTC www.blakes.com [Source type: FILTERED WITH BAYES]

 ^ Canadian firm in Worldwide Announced Deals by deal value No.
  • Mergers & Acquisitions 12 January 2010 7:57 UTC www.blakes.com [Source type: FILTERED WITH BAYES]

 ^ Terms are disclosed but according to a person familiar with the matter, deal was valued at an estimated MYR #.## (USD #.###) per share, or a total value of MYR ##.### mil (USD ##.### mil).
  • TF Mergers & Acquisitions - M&A Database - Most Recent Research - AlacraStore.com 12 January 2010 7:57 UTC www.alacrastore.com [Source type: Reference]

 USD) from 1990 to 1999:
Rank Year Purchaser Purchased Transaction value (in mil. USD)
1 1999 Vodafone Airtouch PLC[8] Mannesmann 183,000
2 1999 Pfizer[9] Warner-Lambert 90,000
3 1998 Exxon[10][11] Mobil 77,200
4 1998 Citicorp Travelers Group 73,000
5 1999 SBC Communications Ameritech Corporation 63,000
6 1999 Vodafone Group AirTouch Communications 60,000
7 1998 Bell Atlantic[12] GTE 53,360
8 1998 BP[13] Amoco 53,000
9 1999 Qwest Communications US WEST 48,000
10 1997 Worldcom MCI Communications 42,000

Major M&A in the 2000s

.Top 10 M&A deals worldwide by value (in mil.^ Canadian firm in Worldwide Completed Deals by deal value No.
  • Mergers & Acquisitions 12 January 2010 7:57 UTC www.blakes.com [Source type: FILTERED WITH BAYES]

 ^ Canadian firm in Worldwide Announced Deals by deal value No.
  • Mergers & Acquisitions 12 January 2010 7:57 UTC www.blakes.com [Source type: FILTERED WITH BAYES]

 ^ Terms are disclosed but according to a person familiar with the matter, deal was valued at an estimated MYR #.## (USD #.###) per share, or a total value of MYR ##.### mil (USD ##.### mil).
  • TF Mergers & Acquisitions - M&A Database - Most Recent Research - AlacraStore.com 12 January 2010 7:57 UTC www.alacrastore.com [Source type: Reference]

 USD) from 2000 to 2009:
Rank Year Purchaser Purchased Transaction value (in mil. USD)
1 2000 Fusion: America Online Inc. (AOL)[14][15] Time Warner 164,747
2 2000 Glaxo Wellcome Plc. SmithKline Beecham Plc. 75,961
3 2004 Royal Dutch Petroleum Co. Shell Transport & Trading Co 74,559
4 2006 AT&T Inc.[16][17] BellSouth Corporation 72,671
5 2001 Comcast Corporation AT&T Broadband & Internet Svcs 72,041
6 2009 Pfizer Inc. Wyeth 68,000
7 2000 Spin-off: Nortel Networks Corporation 59,974
8 2002 Pfizer Inc. Pharmacia Corporation 59,515
9 2004 JP Morgan Chase & Co[18] Bank One Corp 58,761
10 2008 Inbev Inc. Anheuser-Busch Companies, Inc 52,000

See also

References

  1. ^ "Mergers and acquisitions explained". http://www.m-and-a-explained.com/. Retrieved 2009-06-30. 
  2. ^ DePamphilis, D. Understanding Mergers, Acquisitions, and Other Corporate Restructuring Terminology
  3. ^ King, D. R.; Slotegraaf, R.; Kesner, I. (2008). "Performance implications of firm resource interactions in the acquisition of R&D-intensive firms". Organization Science 19 (2): 327–340. doi:10.1287/orsc.1070.0313. 
  4. ^ Maddigan, Ruth; Zaima, Janis (1985). "The Profitability of Vertical Integration". Managerial and Decision Economics 6 (3): 178–179. doi:10.1002/mde.4090060310. 
  5. ^ King, D. R.; Dalton, D. R.; Daily, C. M.; Covin, J. G. (2004). "Meta-analyses of Post-acquisition Performance: Indications of Unidentified Moderators". Strategic Management Journal 25 (2): 187–200. doi:10.1002/smj.371. 
  6. ^ Mergers and Acquisitions Lead to Long-Term Management Turmoil Newswise, Retrieved on July 14, 2008.
  7. ^ M&A Agility for Global Organizations
  8. ^ Mannesmann to accept bid - February 3, 2000
  9. ^ Pfizer and Warner-Lambert agree to $90 billion merger creating the world's fastest-growing major pharmaceutical company
  10. ^ Exxon, Mobil mate for $80B - December 1, 1998
  11. ^ Finance: Exxon-Mobil Merger Could Poison The Well
  12. ^ Fool.com: Bell Atlantic and GTE Agree to Merge (Feature) July 28, 1998
  13. ^ http://www.eia.doe.gov/emeu/finance/fdi/ad2000.html
  14. ^ Online NewsHour: AOL/Time Warner Merger
  15. ^ AOL and Time Warner to merge - January 10, 2000
  16. ^ AT&T To Buy BellSouth For $67 Billion, Apparent Bid For Total Control Of Joint Venture Cingular - CBS News
  17. ^ AT&T- News Room
  18. ^ "J.P. Morgan to buy Bank One for $58 billion". CNNMoney.com. 2004-01-15. http://money.cnn.com/2004/01/14/news/deals/jpmorgan_bankone/. 

Further reading

  • DePamphilis, Donald (2008). .Mergers, Acquisitions, and Other Restructuring Activities.^ The Role of Mergers and Acquisitions in Creating Shareholder Value "The basic objective of making acquisitions is identical to any other investment associated with a company's overall strategy, namely, to add value."
    • Financial Considerations of Mergers and Acquisitions,mergers acquisitions,shareholder value,due diligence,acquisition risks,acquisition search,financial projections,financing needs,leveraged buyouts 12 January 2010 7:57 UTC www.financeandprofitabilitybooks.com [Source type: News]

     ^ Overview of what mergers, acquisitions, and other such activities are all about, why they are attractive and potentially dangerous, and how to assess the risks and prepare an organization to deal with them.
    • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

     ^ Intersections: Global transportation & logistics mergers and acquisitions analysis Intersections: Global transportation & logistics mergers and acquisitions analysis Intersections is a quarterly analysis of global merger and acquisition activity in the transportation & logistics industry.
    • Mergers and acquisitions industry insights 12 January 2010 7:57 UTC www.pwc.com [Source type: General]

     .New York: Elsevier, Academic Press.^ New York, N.Y. : Foundation Press, 2000.
    • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

     pp. 740. ISBN 978-0-12-374012-0.     
  • Cartwright, Susan; Schoenberg, Richard (2006). ."Thirty Years of Mergers and Acquisitions Research: Recent Advances and Future Opportunities". British Journal of Management 17 (S1): S1–S5. doi:10.1111/j.1467-8551.2006.00475.x. 
  • Harwood, I. A. (2006).^ Deal management and client service are key components of our Mergers and Acquisitions practice.

     ^ Message (optional): Categories: Intuit , Mergers & Acquisitions , Metrics & Market Research , Mint , PayTrust , Personal Financial Management .
    • NetBanker: Mergers & Acquisitions Archives 12 January 2010 7:57 UTC www.netbanker.com [Source type: News]

     ^ A prominent mergers-and-acquisitions lawyer, Mr. Fox is leaving after more than 20 years with the firm, founded in 1948.
    • Above the Law - A Legal Tabloid - News, Gossip, and Colorful Commentary on Law Firms and the Legal Profession - Mergers and Acquisitions 12 January 2010 7:57 UTC abovethelaw.com [Source type: News]

     ."Confidentiality constraints within mergers and acquisitions: gaining insights through a 'bubble' metaphor". British Journal of Management 17 (4): 347–359. doi:10.1111/j.1467-8551.2005.00440.x. 
  • Rosenbaum, Joshua; Joshua Pearl (2009).^ Deal management and client service are key components of our Mergers and Acquisitions practice.

     ^ Managing through Mergers and Acquisitions Transcript IEC Home > > Programs > > Insight on Coaching > > Archive > > Managing Through Mergers & Acquisitions > > Managing through Mergers and Acquisitions Transcript .
    • Managing through Mergers and Acquisitions Transcript 12 January 2010 7:57 UTC www.ieconsulting.biz [Source type: General]

     ^ Privacy Policy   The 10 biggest tech mergers and acquisitions of 2009 .
    • The 10 biggest tech mergers and acquisitions of 2009 12 January 2010 7:57 UTC www.computerworld.com [Source type: News]
    • The 10 biggest tech mergers and acquisitions of 2009 12 January 2010 7:57 UTC www.computerworld.com [Source type: News]

     .Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions.^ The Art of M&A : A Merger Acquisition Buyout Guide Stanley Foster Reed, Alexandra Reed Lajoux.
    • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

     ^ Mergers, Acquisitions, and Leveraged Buyouts Robert Lawrence Kuhn, editor-in-chief.
    • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

     ^ H Financial Modeling Provides customized strategy consulting and investment banking advisory services for Projections, Merger, and Buyouts.
    • Mergers and Acquisitions (M&A): Companies and Services | Business.com 12 January 2010 7:57 UTC www.business.com [Source type: News]

     .Hoboken, NJ: John Wiley & Sons.^ From: M & A ; Jeffrey Hooke; 1997 John Wiley & Sons, Inc.
    • Financial Considerations of Mergers and Acquisitions,mergers acquisitions,shareholder value,due diligence,acquisition risks,acquisition search,financial projections,financing needs,leveraged buyouts 12 January 2010 7:57 UTC www.financeandprofitabilitybooks.com [Source type: News]

     ^ This Book Summary contains Concept Extracts from : Winning at Mergers and Acquisitions Mark Clemente David Greenspan John Wiley & Sons, Inc.
    • Winning at Mergers and Acquisitions, The Guide to Market-Focused Planning and Integration,Mark Clemente,David Greenspan,mergers acquisitions,postmerger integration,planning integration,target company 12 January 2010 7:57 UTC www.financeandprofitabilitybooks.com [Source type: News]

     ^ New York : John Wiley & Sons , c2000.
    • Mergers, Acquisitions, and Joint Ventures (Business Reference Services, Library of Congress) 12 January 2010 7:57 UTC www.loc.gov [Source type: Academic]

     ISBN 0-470-44220-4. 
  • Straub, Thomas (2007). .Reasons for frequent failure in Mergers and Acquisitions: A comprehensive analysis.^ The mergers and acquisitions industry regularly faces changes that shape the reasons companies decide to reorganize and merge.
    • Mergers and Acquisitions (M&A): Companies and Services | Business.com 12 January 2010 7:57 UTC www.business.com [Source type: News]

     ^ Merger and Acquisition Analysis .
    • Mergers and Acquisitions (M&A): Companies and Services | Business.com 12 January 2010 7:57 UTC www.business.com [Source type: News]

     Wiesbaden: Deutscher Universitätsverlag. ISBN 978-3-8350-0844-1.     
  • Scott, Andy (2008). .China Briefing: Mergers and Acquisitions in China (2nd ed.^ Get our Mergers & acquisitions daily Briefing .
    • Mergers & Acquisitions News - Congoo 12 January 2010 7:57 UTC www.congoo.com [Source type: News]

     ^ The required textbook is Structuring Mergers & Acquisitions Peter A. Hunt, 3rd ed., Aspen Publishers, 2007 (below Hunt).
    • The Tuck MBA - Structuring Mergers and Acquisitions - Syllabus 12 January 2010 7:57 UTC oracle-www.dartmouth.edu [Source type: FILTERED WITH BAYES]

     ^ Supplementary readings The legal side of takeovers is covered in great detail in Takeovers: A strategic guide to mergers and acquisitions by M.M. Brown, R.C. Ferrara, P.S. Bird, G.W. Kubek and W.D. Regner, 2nd ed., Aspen Publishers, 2004.
    • The Tuck MBA - Structuring Mergers and Acquisitions - Syllabus 12 January 2010 7:57 UTC oracle-www.dartmouth.edu [Source type: FILTERED WITH BAYES]

     ).     
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