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Mergers and Acquisitions
Mergers and acquisitions are business strategies that deal with selling, buying, and combining of companies. Mergers occur when two or more companies are joined together. When one company buys another, either through friendly or hostile takeover, it is called acquisition.
593 Questions
What are the problems of merger in banks?
Mergers in banks can lead to several challenges, including regulatory hurdles, integration difficulties, and cultural clashes between merging institutions. These issues can result in operational inefficiencies and a loss of customer trust. Additionally, there may be concerns about reduced competition in the banking sector, potentially leading to higher fees and lower service quality for consumers. Effective management of the merger process is crucial to mitigate these risks.
What is the difference between a financial and an operating merger?
Financial Merger
A merger in which the firms involved will not be operated as a single unit and from which no operating economies are expected. The incremental post-merger cash flows are simply the expected cash flows of the target firm.
Operating Merger
A merger in which, operations of the firms involved are integrated, in the hope of achieving synergistic benefits. In this case forecasting future cash flows is more difficult.
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What are the various factors affecting mergers?
discuss various factors affect percepation with proper ,I llustrations
What is the use of solvency certificate?
A solvency certificate is a basically a representation as to the solvency of the entity which issues it.
Although the solvency certificate has little use against the entity that issues it (either the entity is solvent or it is not - issuing a certificate which wrongly states the position will not change anything), a party relying upon a solvency certificate can sometimes protect themselves against third parties.
For example, in many jurisdictions, if a company enters into an undervalue transaction whilst it is insolvent, the liquidator can subsequently apply to have the transaction set aside. However, if an individual demonstrated that they acted in good faith and did not know that the company was insolvent, the court may not be prepared to set the transaction aside. Showing that they relied upon a solvency certificate is a good way to demonstrate that they made proper inquiries and believed the company to be solvent.
What are the seven principles of internal control?
establish responsibilities, maintain adequate records, insure assets and bond key employees, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls, perform regular and independent reviews
What is the difference between a Stock sale or an asset sale?
In a stock sale, the buyer purchases all or a portion of the stock (or membership interest in the case of an LLC) of a business entity. In most cases, the purchase would be at least for a controlling (majority) interest. The business entity itself continues to exist as before, there is simply a change of ownership. Notably, if the business entity owed people money before the stock sale, it will continue to owe that money after the stock sale, so the new owner effectively assumes all of the obligations of the business.
In an asset sale, the buyer only purchases assets from the business. Unless the buyer agrees to assume specific liabilities (or, in some instances, if there are specific liabilities that follow the assets, by law), the buyer is not responsible for paying the debts of the selling company. After the sale of the assets, the old company continues to have the responsibility to pay its creditors.
What problems should one be aware of when dealing with remote acquisitions?
data transfer speed
access permission over the internet
antivirus, antispyware, and firewall porgrams
all of the above
What is meant by post closing adjustment?
Post-closing adjustment is adjustmet to purchase price of a company (stake) in order to reflect changes that could happen between deal discussion and actual closing of the deal.
It is usually set out in the Share Purchase Agreement (SPA).
The post-closing adjustment amount is usually being determined based mainly on the development of the net working capital of of acquired subjet between certain specified date and the actual closing of the acquisition.
Detailed procedure is stipulated in the SPA.
In New England, growing season was short and the terrain wasn't suitable. That's why many farmers practiced subsistence farming to produce enough for themselves, and sometimes a little extra for trading in town. It was a small scale of farming.
What was the ticker symbol for Exxon Corp before merger with Mobil?
Prior to the merger, the ticker symbol was XON.
What issues should be addressed to make a cross-cultural merger a success?
1.go to bed
have a nice sleep until 24th of march.
1.go to bed
have a nice sleep until 24th of march.
1.go to bed
have a nice sleep until 24th of march.
1.go to bed
have a nice sleep until 24th of march.
How do you calculate swap ratio for a merger?
Swap ratio for a merger is calculated based on the price for each commodity on the agreed upon day. If Company A has a stock value of 10 and Company B has a value of 5, the ratio is 2/1.
It approx 25% ,so for every hundred pounds you get 25 back. That is based on a four year retail cycle.
Reg merger scale 500055006500-10500 what will 1 st ACP?
pre-revised scales of 5000-8000 and 5500-9000 merged given grade pay 4200 and 6500-10500 and 7450-11500 merged given grade pay 4600 so,the question is what is grade pay on 1st ACP ?
The answer is that as on 01-01-2006 whatever ACPS earned will be ignored if earned in pre revised scales thus any one completes 12 years between 01-01-2006 and 31-08-2008 be allwed to get 4600 grade pay if they were recruited in 5000-8000 scale.
Why are mergers and acquisitions strategically important?
There are two kind of buyers:
Strategic Buyer - Companies that want to expand through acquisitions. They are active in managing the companies they acquire.
Financial Buyer - These are private equity funds. They acquire to increase the portfolio of companies they hold. Passive owners of companies they acquire. Usually exits a company after 5 to 7 years.
Acquisitions by their very nature are inherently strategic.
The aim of any acquisition or merger is to increase growth and profitability.
What are the recent examples of joint ventures?
A recent joint venture is the one of AT & T and Chernin Group, a producer of media content. Another recent joint venture is Mondelez, owner of Cadbury chocolate, and D.E Master Blenders 1753 of Amsterdam, known for such brands as Gevalia and Senso.
How does one contact First Nationwide Bank if it has gone through acquisitions?
My name is Jesus Ramirez. I worked for First Nationwide Bank from 02/1976 thru 1990 in the San Francisco, Sacramento area. My question is did First Nationwide Bank issue a retirement account, and if so, how can I obtain it? Thank you.
What are advantages and disadvantages of horizontal merger?
Definition:
A horizontal intergration occours when a firm takes over or merges with another firm in the same stage of production, Producing similar or same products .
+Advantages
+Achieave Greater Economies of Scale
+Increase its market share
+Reduction in average cost as a result of rationalization
-Disadvantages
-Increase in average cost -if the company is too large and experiencing dis economies of scale
-The two companies maybe located some distance apart,although advances in ICT are reducing this problem.
-There is initially likely to be some extra cost involved in seeking to harmonize,for instance,wage rates and accounting systems in the two companies
What are cross border mergers and acquisitions?
- cross-border mergers: Is a transaction in which the assets and operation of two firms belonging to or registered in two different countries are combined to establish a new legal entity.
- cross-border acquisitions: Is the control of assets and operations is transferred from a local to a foreign company, with the former becoming an affiliate of the latter.
Examples of travel and tourism mergers?
p&o and ocean village MyTravel & Thomas Cook First Choice & Thomson
What is the Role of investment banks in mergers and acquisitions?
Investment Banks act as brokers, the owner of a company, no matter the size will commission an investment bank to help gain the attention of potential investors or buyers. The investment bank will also help value the company and review it's financial statements; many times putting together what is known in the industry as a deal book, which is basically a full report on all aspects of the company. There services can vary but all in all there jobs in M&A is to help the business raise capital.
