PPT on merger & acuqisitions

PRESENTATION
BY

Shipra Sharma
MBA

CONTENTS
1. Historical phase
2. Introduction
3. Types & diffrences
4. Objectives & benefits
5. Problems & Solutions
6. Comparitive analysis
7. Examples with analysis
8. Recent tech mahindra merge
9. Conclusions.

History
• The concept of merger and acquisition in India was not
popular until the year 1988. During that period a very
small percentage of businesses in the country used to
come together.
• The key factor contributing to fewer companies involved
in the merger is the regulatory and prohibitory provisions
of MRTP Act, 1969.
• According to this Act, a company or a firm has to follow a
pressurized and burdensome procedure to get approval
for merger and acquisitions.

*The year 1999 tnessed one of the oldest business acquisitions or
company mergers in India. It is the well-known ineffective
unfriendly takeover bid by Swaraj Paul to overpower DCM Ltd.
and Escorts Ltd

Volume is tremendously increasing with an estimated deal of
worth more than $ 100 billions in the year 2007.

This is known to be two times more than that of 2006 and four
times more than that of the deal in 2006

As for mow the scenario has completely changed with increasing
competition and globalization of business. It is believed that at
present India has now emerged as one of the top countries
entering into merger and acquisitions

MERGER
It refers to the aspect of corporate strategy,
corporate finance and management dealing with
the buying, selling, dividing and combining of
different companiess and similar entitiess

Through it can help an enterprise grow rapidly in
its sector or location of origin, or a new field or
new location, without creating a subsidiary, other
child entity or using a joint venture.

Acquisition
Acquisition-It is the purchase of
one business or company by
another company or other
business entity. Acquisitions are
divided into "private" and "public“.
Acquisitions, depending on
whether the acquire or merging
company (also termed a target) is
or is not listed on public stock
market.

DIFFERENCES

MERGER ACQUISITIONS
• Retain name & brand. • It can’t retain
• Mutual benefits *Saving from the loss
• NO loss of cooperate • Usually loses
culture. cooperate culture.
• Nothing altered the • Negative
employes behaviour. consequences on the
• Responsibilities can employee.
assign but leadership • Payroll &
problems. responsibilites equally
not distributed.

OBJECTIVES & BENEFITS
ECONOMIES MARKET PATENT
OF SCALE SHARE RIGHTS

ELIMINATION
DESIRED
OF
TO ENJOY
COMPITIOTION
MONOPOLY

ADAPTION OF M&A
MODERN
ECONOMY
TECHNOLOGY
OF SCOPE

EFFECT OF
OTHERS
TRADING
SYNERGY

TYPES OF MERGING

1. Vertical Merger.
2. Conglomerate
Merger
3. Horizontal Merger

EXAMPLES OF DIFFERENT TYPES

• VERTICAL-
ex- Time Warner Incorporated, a major
cable operation, and the Turner Corporation,
which produces CNN.
• HORIZONTAL-
ex-bank of Mathura with icici &
Lipton India & Brokebond.
• CONGLOMERATE-
ex-Walt Disney with abc

PROCESS

Business Proposal
Planning
Valuation Phase
Exit

Operating Stage of Structuring
the Venture Integration Business
Deal

STRATEGIES
• PLAN DRIVERS
• UNDERSTANDING
MARKET
• ACCESSING THE
MARKET
• INTEGRATION
PROCESS
• RESTRUCTURING
PLANS
• TAKE STEPS

COST CALCULATIONS
1.REPLACEMENT COST METHOD
2.DISCOUNTED CASH FLOW METHOD

THE FAMOUS MERGERS OF
INDIA
• TATA with COROUS group steel manufacturer of 12000
mil.
• VIDEOCON with DEWAOU electronics of 729 mil.
• Energy HPCL Kenya Petroleum Refinery
Ltd.Kenya500Oil Gas
• Ranbaxy Labs Terapia SA Romania 345mil
• Pharmaceutical Tata Steel Nat steel Singapore 293
Videocon Thomson SA France 290Electronics
• Kenya Petroleum Refinery Ltd of Kenya .

PROBLEMS WITH MERGERS
&ACQUISITION
1.Integration difference-
ex-intel acquiring dec’s semiconductor
2.Inadequate evolution of target-
ex-spencers acquisition of book stores.
3.Large extraordinary debts
ex -agri biotech acquisition with dozens of
small firms
4.Inability to achieve synergy
5.Overly diversified

TECH MAHINDRA WITH SATYAM
• While Satyam has settled most lawsuits against it that
cropped up in the wake of the scam, there is still a
pending class action suit from the Aberdeen group, one
of the largest institutiona.
• l investors, prior to the fraud
• Joining the Big Boys Club- earning huge bamount of
shares from many stakholders.

TECH MAHINDRA-SATYAM

• The merger ratio, at 17 shares of Mahindra Satyam for
two Tech Mahindra shares, was along expected lines,
valuing the former Satyam at $1.8 billion (Rs 9,000
crore).
• CP Gurnani, the chief executive of Mahindra Satyam
who oversaw the difficult transition of a fraud-hit firm to
normalcy, will be the head of the combined entity.
• While Satyam has settled most lawsuits against it that
cropped up in the wake of the scam.
• there is still a pending class action suit from the
Aberdeen group, or to the fraud

.
But Gurnani said his aim is not to create a 'me-too' company
challenging the top-tier firms across the spectrum of IT services.
Instead, the focus will be on chosen verticals and service offerings

COMPARITIVE ANALYSIS
INDIA INTERNATIONAL

CONCLUSION
• When an company acquire or merge it
depends upon its planning & strategies
whether they will profited or in losses.
• India have many cases trough which they
proved its not lagging in this aspect of
M&A from worldwide.

PPT on merger & acuqisitions

More Related Content

What's hot

Viewers also liked

Similar to PPT on merger & acuqisitions

Recently uploaded

PPT on merger & acuqisitions