Mergers and Acquisitions

175-275 USD depedning on condition

A conglomerate merger is one between two strategically unrelated firms from which economic benefits is not possible for the bidder or the target. The merger between Walt Disney Company and American Broadcasting Company is a conglomerate merger.

In a merger, two or more companies of relitively similar size etc come together to form a larger company or conglomerate. It is often accopanied by a transition period and a rebranding exercise as the companies combine In a takeover, a larger company will absorb a weaker company. This weaker company is often struggling financially and will almost certainly be smaller than the company doing the takeover. The smaller company will effectively disappear although staff may be kept on in a similar roll to their previous jobs.

There are certain benefits that can be derived from merging and acquiring a comany. First off, M&A require a lot less energy and time in getting a company set up as opposed to building a company from the ground up Secondly, it is very expensive to build a company from the ground up so M&A would be less expensive that starting a new company Thirdly, there are trasfers of talents and resources when a company is acquired by another

A buyout is an acquisition of a controlling interest in a business or corporation by outright purchase or by purchase of a majority of issued shares of stock.

the act of acquiring

You may find in in "Introduction to Airline Economics: From Theory to Application" by Bijan Vasigh, Ken Fleming and Thomas Tacker. The publisher is Ashagte.

Mergers are a large part of business. Some of the biggest of all time are Time Warner/American Online, Sprint/Nextel and Facebook/WhatsApp.

Advantages of merger are as follows.

Benefits on account of tax sheilds like carried forward losses or unclaimed depreciation .

Restructuring and strengthening the balance sheet .

Ivestment of surplus cash .

Enhancement of market share .

Reduction of competition .

Growth with the amalgamation of the competitive advantage of both the firms .

Investment of surplus cash .

Easy to acfquire economies of scale .

wouldn't it depend on the size and condition, etc.? i have a 99 28 x 56 palm harbor and its FMV is about $50,000.

What is a management buyout? Private equity firms like the Carlyle Group, Kohlberg Kravis Roberts (KKR) and many others have made huge returns for investors through buyouts. Using financial engineering and a lot of debt these firms buy companies with little money down. While these types of transactions create spectacular returns for investors, they often shortchange the seller and management teams that drive the business. Thankfully, owners and managers can use these same financial tactics to buy and sell their business and have the benefit accrue to them. link How Most Management Buyouts are Done Private equity firms do hundreds of buyouts a year. Their typical approach is to offer to buy a controlling stake in a company using leverage they obtained from banks based on the financials of that company. Often times these firms commit very little of their own money to purchase the business. With little cash invested, these deals create spectacular returns for the buyout firm. Buyout firms also collect large fees up front, as well as additional advisory fees while operating a company they've acquired, and a big share of the investment profits. The average annual management fee to do business with a private equity firm is about 1.5% to 2.5%. The average share of profits is about 20%. While buyout firms give management ownership, it's usually less than 20% of the company. This type of buyout is the most common and is typically called a Sponsored Leveraged Buyout, where the equity player is the "Sponsor." Non-Sponsored Management Buyouts For financially healthy businesses, there is another approach that utilizes the same financing techniques but management gains operating control. In fact, management can end up owning 85% to 100% of the Company depending on the situation. These types of buyouts are called Non-Sponsored Leveraged Buyouts. Keys to Non-Sponsored Buyouts The process of completing a non-sponsored management buyout is pretty much like any other kind of business financing. The key requirements for a successful non-sponsored buyout include: 1. Quality Company and Team - An ideal situation is for the buyer(s) to already be running a profitable business. Common situations would be a CEO that buys a company from a passive owner or a limited partner buying out his or her majority partner(s). The key is for would-be lenders or investors to have confidence in the management team once the owner walks about the door. Our experience encompasses helping managers and minority shareholders execute non-sponsored buyouts that realize control of the business while allowing them to create significant value. 2. Proactive Management - Many prospective buyers never ask for the opportunity to buy their owner's business. Many are reluctant because they are unfamiliar with the process or believe they can't qualify for financing. Interestingly, it's the financials of the company, not the individuals that drive the ability to perform a non-sponsored buyout. The best way to start such discussions is to informally ask if the owner is open to discussing it. Once you get a 'yes' (even a tentative 'yes'), more homework can begin. 3. Agreement on Purchase Price - Agreeing on a purchase price can be as complicated or as simple as both parties want to make it. Still, most small to mid-sized companies are valued at a multiple of between 4 to 7 times cash flow (commonly called 'EBITDA' - for earnings before interest, taxes, depreciation and amortization). As an example a company that makes $2 million a year EBTIDA would be worth $10 million at a 5 multiple (5X). Knowing this, the most direct way to get a price is to ask the owner their price. Any purchase price within a 4 to 7 range will probably work. In fact, our experience has shown buyers will end up owning more through a non-sponsored buyout than a sponsored buyout even if they have to overpay some in order to buy the company. 4. Understanding of Financing Options - Most companies know they can get debt from banks and equity from buyout funds. However, a there are a variety of lesser known funding sources such as subordinated debt lenders, insurance companies, corporate development companies, hedge funds and other specialty lenders that will lend beyond a traditional bank. These are the same institutions that buyout firms use. Depending on the economic climate many of these firms will lend up to and sometimes over 4 times cash flow (EBITDA). Buyout Math: Putting it all together Following the math here, if a buyer purchases a company for $10Million (5X EBITDA) and can borrow $8Million (4X EBITDA) they end up owning 80% of the Company. Owners are satisfied because they get cash up front with no recourse. Buyers like it because they get control. Also, most of these specialty lenders do not require personal guarantees limiting the downside risk to new owners. Over time the owner's remaining interest can be bought out, often at a higher valuation. Most important, the value to all parties is directly driven by the buyer's performance rather than financial engineering by outside investors. Lantern Capital Advisors Management Buyout Services Lantern Capital Advisors works with management teams to evaluate a company's business and potential for a management buyout. If it is believed that the future of the business provides a strong potential for success, Lantern Capital Advisors will work with management to draft a letter of intent (proposal) to purchase the Company from the owner. Often one of the biggest road blocks to executing a management buyout is the owner's belief whether management is a qualified buyer. To gain the confidence of management and the owner, Lantern Capital Advisors pre-qualifies the buyout with multiple potential lenders/investors prior to submitting a proposal to the owners so that both owner and buyer can feel confident a deal can get done. Lantern Capital Advisors can also help management and owner identify an independent valuation firm to justify the purchase price both for the potential buyer and seller. Once an owner accepts the letter of intent, Lantern Capital Advisors will work with management to draft a business plan and financing request to secure the needed capital. Lantern Capital Advisors will arrange meetings with interested lenders and investors and will assist with the negotiations of all financing proposals. The goal is to find financing that optimizes management's ownership potential and long term objectives.

When a bicycle company and a manufacturer of inner tubes merge.

The one company is different from the other; however it's product is part of the other. Depending on their relative size, a rubber company could also buy the bicycle company as an end user of their products.

Another one you might like: a mattress manufacturer buys companies that make all the parts for the mattresses, a trucking company, a chain of furniture stores and a bank. Now they can make the raw materials, turn them into mattresses, ship them to their own stores and loan people money to buy them. In reality the government would break this up, but that's a vertical merger.

Basically, a joint venture is when two or more companies make an agreement to do business in one specific area. They can share the insurance, shipping and liability costs and produce higher profits. It is usually a short lived collaboration. A merger is when two companies come together to form a single company. They combine their respective resources. Sometimes there are losses of jobs, but not all. Those decisions are specified in the merger contract well in advance of the deal. An acquisition is when one company is buying and taking over another. If it is friendly, often the seller can stipulate who keeps their job and so forth. If it is unfriendly, the company taking over gets to make all the final decisions. They cannot take away benefits already earned.

The ticker symbol for Applera Corp-Applied Biosystems Group is ABI and it is traded on the New York Stock Exchange. It is a division of the company formerly known as Perkin-Elmer (formerly NYSE ticker: PKN) before it acquired Applied Biosystems (formerly NASDAQ ticker: ABIO) and Celera Genomics which is a publicly-traded subsidiary of the parent company now called Applera Corp-Celera Group (NYSE ticker: CRA).

The easiest way I can think of to describe a merger is equate it to a recipe. In cooking, when you want to merge two ingredients you mix them. In business it is the same way. You take two businesses and mix them together in to one, larger business. Sometimes, like mixing oil and water, it doesn't work real well. When that happens the business leader has to come up with a solution. It may be the need for a third party. It might mean parts may need to separated. On the other hand, sometimes, like mixing milk and an egg the result is magic. Frankly, without a great deal of study and hard work, merging two companies can be a crap shoot.

The disadvantages of mergers and acquisitions are listed below:

Diseconomies of scale if business becomes too large, which leads to higher unit costs.

Clashes of culture between different types of businesses can occur, reducing the effectiveness of the integration.

May need to make some workers redundant, especially at management levels - this may have an effect on motivation.

May be a conflict of objectives between different businesses, meaning decisions are more difficult to make and causing disruption in the running of the business.

Exxon Mobile

BMW and Roles Royce

Yes, Florida used to be one of Spain's colonies, but it was acquired by the US in 1819.

The announcement was made about a combined merger; to become the largest airline in the world. It will run under the name of "United" and will be run by the CEO of Continental.

Singapore merged with Malaysia in 1963 and the official date is 16 September 1963

air deccan with king fisher

sahara with jet airways

1. Business economics is a branch of economics which applies microeconomics analysis tro decision methods of business or other management units where as economics is the science which studies how the scarce resources are employed for the satisfaction of needs of men living in the society.

2. Business economics is micro in nature whereas economics is macro in nature.