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peter drucker gave five rules for acquisitions to be more successful contribution eg the acquirer can add value to the target organisation other than
how howan acquisition should be implemented1 directors of the target company must be approached first and a firm offer of a price made on condition
post-acquisition integrationin order to have constructive discussions between organisations its strongly recommended that all participants in process
what theoretical share price share for share exchangeestablish what theoretical share price may be after the merger in a share for share exchange
post-merger eps and post-mergershare pricean estimated post-merger eps can be calculated bycombined earnings total shares after mergeran estimated
post-acquisition effect on epsif the consideration is completely in shares one of the effects would be a dilution in eps suffered by predator company
define the both cash and share exchangegenerally both cash and share exchange are used to make the offer more attractive other forms of consideration
earn out arrangements consideration could be delayed and paid only upon achievement of certain criteria for illustration the predator company
what is share exchange predator company offers their shares in exchange for target companys shares so target shareholders become part of
define the term- cash purchases shareholders of the target company are bought out completely and have no further stake in business this
explain the meaning of - purchase considerationthe type of offer made to target companys shareholders would
define the general principles of the city codegeneral principles of the city code information available to all shareholders and should be free
state about the investigate of competition directorate competition directorate will generally investigate the below areasi mergers and
explain the role of commission authoritiescompetition directorate is one of the independent public bodies which help ensure healthy competition
regulation of mergers and acquisitions mergers and acquisitions are regulated bycompetition commissionif office of fair trading thinks that merger
what are the predator shareholderspredator companys shareholders maynt approve the bid for various reasonsreduction in epsif consideration is in
after the bidtactics can be undertaken by directors to ensure that their shareholders dont accept the bid if that is what they
tactics can be used by company to protect itselfbefore the bidtypes of shareholderhaving the right shareholders on board who can be influenced by
factors to consider in a takeover mergerbefore a company decides to merge or acquire the following considerations should be takenrejection of bid
diversificationa strategy which tends to move into new products and new markets in which organisation is
market developmenta strategy which seeks to sell existing products in new geographical markets or new market segments a strategy to find new uses for
product developmenta strategy which tends to increase sales by the development of new services or products to the same market for example an entirely
explain the term- market penetrationa strategy which pursues to increase sales of existing services or products to the same market price reduction
a useful matrix for acquisitions is ansoff matrix business strategy knowledgeansoff productmarket growth strategies model is a framework for the
determine about the synergistic effectwhen two or more companies join together there must be a synergistic effect synergy is when 2 2 5 net present