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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 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.

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 are the financial aspects of Mergers and Acquisitions?

The financial aspects of mergers and acquisitions (M&A) encompass valuation, financing, and integration costs. Valuation involves assessing the worth of the target company through methods like discounted cash flow analysis or comparable company analysis. Financing can come from various sources, including cash reserves, debt issuance, or equity financing. Additionally, integration costs may arise as companies merge operations, necessitating careful financial planning to ensure a successful transition and realization of synergies.

Why is subsistence important?

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 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.

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.

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.

How do employees react to mergers and acquisitions?

Employees experience and act in the following manners: * Uncertainties * Fear * Employees may start looking for other oppertunities outside the organisation bue to their fears and uncertainties. People cant afford to be without a job for very long. * Shrinkage may increase: Again due to the uncertainties and fears you may find that employy theft is on the increase. * Employees may become angry about the processes that was followed. * Unhappy employees will lead to a decline in production. But on the other hand, if the processes is handled correctly: * employees are invloved in the process * there is no hidden agenda's etc, the employees may still feel uncomfortable but you will control some of the employees reactions.

Mergers are beneficial for the us economy?

Some mergers are beneficial to the United States economy. However, when a merger reduces the amount of competition in an industry it isn't good for the economy.

What are examples of mergers by companies?

Companies often merge due to reasons such as cost savings, some examples of this are:

The recent merger of Continental Airlines and United Airlines to create United-Continental which is predicted to bring savings to the companies of $1 billion and will create a company with a combined revenue of $29 billion.

Other major mergers include:

Time Warner/AOL, Daimler Benz/Chrysler, Exxon-ExxonMobile. There is a huge number and they constantly occur but this answer should give you a few.

Do people who hold old monsanto stock now own pfizer stock?

yes, Monsanto MTC was merged with Upjohn Pharmacia which eventyally merged with Pfizer PFE. It is very complicated to track it, but I'll try to help..

My dates may be off, in my work I didn't need the exact dates but I know the range, exact dates are out on the web if you look for them.. my research goes back to 1991

Key Events;

-4 for 1 split sometime between 93 - 96

-MTC spins out Solutia in 9/97; New basis 91.45% to MTC, 8.55% to Solutia

-4/2000 MTC mergers with Upjohn Phamacia; MTC gets 1 for 1 of Pharmacia

-6/02; Pharmacia spins off new Monsanto (MON); new basis 93.9% to Pharm, 6.1% to MON

-4/03 Pharmacia mergers with PFE, Pharmacia holder get 1.4 shares for 1 of PFE... hope this helps

What is effect of corporate action on balance sheet?

The effect of corporate action on Balance sheet is:

Stock Split: The number of shares outstanding increases.

The face value of stock decreases(Equals Value divided by the stock split factor)

No Cash Comes to the company.

Retained Earnings and Share Capital remains the same

Bonus Issue: The number of shares outstanding increases.

The face value of shares remains same

No cash comes to the company

Share capital and paid up capital increases but retained earnings

decrease.