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3rd Period

The document outlines the fundamentals of mergers and acquisitions (M&A), defining them as strategies for companies to combine or acquire others to enhance competitive advantage and growth. It discusses various types of mergers, including horizontal, vertical, conglomerate, and market extension mergers, as well as the differences between friendly and hostile takeovers. Additionally, it highlights the role of investment bankers in M&A processes and touches on corporate alliances and private equity investments.

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urayamajhi2059
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40 views11 pages

3rd Period

The document outlines the fundamentals of mergers and acquisitions (M&A), defining them as strategies for companies to combine or acquire others to enhance competitive advantage and growth. It discusses various types of mergers, including horizontal, vertical, conglomerate, and market extension mergers, as well as the differences between friendly and hostile takeovers. Additionally, it highlights the role of investment bankers in M&A processes and touches on corporate alliances and private equity investments.

Uploaded by

urayamajhi2059
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Merger &

Acquistion
Fundamentals of
Corporate Finance
THE TEAM

SANDIP GIRI ANKIT PARAJULI UMESH RAYA SAHIL SHRIWASTAV

2
Defination
A merger and acquisition (M&A) is a business strategy where
two companies combine (merger) or one company purchases
another (acquisition) to enhance competitive advantage,
expand operations, or achieve growth.

3
Synergy
Rationale Combining resources to create greater efficiency and
value than individual companies.
for Mergers
Market Expansion
Entering new markets or regions to increase
customer base and revenue..

Cost Efficiency
Achieving economies of scale to reduce operational
costs.

Diversification
Reducing risk by expanding into different industries
or sectors.
Competitive Advantage
Strengthening market position to better compete with
companies.
4
TYPES OF MERGERS

Horizontal Vertical Conglomerate Market


Mergers Mergers Mergers Extension
Mergers

A horizontal merger is a A vertical merger is a A conglomerate merger is a A market extension merger


combination of two combination of two combination of two is a merger between two
companies that operate in companies that operate at companies that operate in companies that sell similar
the same industry and are different stages of the completely unrelated products or services but
direct competitors, offering same supply chain, such business activities, typically operate in different
similar products or services, as a manufacturer done to diversify business geographical markets,
with the goal of increasing merging with a supplier or operations and reduce overall aiming to expand their
market share and reducing distributor, to improve risk. reach and customer base.
competition. efficiency and control over
production and
distribution.

UASS
Hostile Versus Friendly Takeovers
Friendly Takeover Hostile Takeover
A friendly takeover takes place when the acquiring A hostile takeover occurs when the acquiring company tries to take
company makes an offer that is accepted and control of the target company without its management’s consent,
supported by the target company’s management and often by directly approaching shareholders or fighting to replace
board of directors. management.

6
Role of
Investment Bankers
Deal Advisory

Valuation

Negotiation
Due Diligence

Financing

7
Corporate
Alliances
Corporate alliances are strategic
partnerships formed between
companies to leverage each other's
strengths, such as resources,
technology, or market access. These
collaborations enable firms to achieve
shared goals, like expanding into new
markets, reducing costs, or enhancing
innovation. Unlike mergers or
acquisitions, the companies involved
maintain their independence while
working together for mutual benefit.

8
Private equity
Of Investment
Private equity investment refers
to the acquisition of equity
ownership in private companies
(or public companies that are
taken private) by investors or
investment firms, typically to
improve the company’s financial
performance and then sell it for a
profit. This investment often
involves active management,
restructuring, and growth
strategies to increase value before
an exit, such as a sale or IPO.

9
Merger Activities
in Nepal

Banking

Consolidation

Regulation

Expansion

10
THANK YOU!

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