8/18/2019 Cf Praveen

1/6

CONTENTINTRODUCTION

MEANING

MOTIVES BEHIND M&ATYPES OF M&A.

8/18/2019 Cf Praveen

2/6

INTRODUCTIONThe great merger movemet !a" a #re$om%at' U.S

 ()"%e"" #heomeo that ha##ee$ *rom +,- to +-/.

% +-// the va)e o* *%rm" a01)%re$ % merger" !a"

2/3 o* GDP. I +--/ the va)e !a" o' 435 ()t +--,6

2/// %t !a" aro)$ +/6++3o* GDP eve %0rea"e.

  "ome 0a"e" to$a' 5 $)e to gro!%g te0hoog%e"

a$va0e" o* the%r #ro$)0t"5 #atet"5 a$ (ra$ (' the%r

0)"tomer".

8/18/2019 Cf Praveen

3/6

Meaning of M&AMERGERS: %t" re*er" to the o* 0or#orate "trateg'5

0or#orate *%a0e a$ maagemet $ea%g !%th the

7()'%g5 "e%g5 $%v%$%g a$ 0om(%%g o* $%**eret

0om#a%e" a$ "%m%ar et%t%e".E89tata6$o0omo5 heroho$a5 mar)th%"):);%5 m%0roma8.

Acquisition9 %" the #)r0ha"e o* oe ()"%e"" or 0om#a' orother ()"%e"" et%t'. A01)%"%t%o are $%v%$e$ %to #r%vate

a$ #)(%0 a01)%"%t%o.

E89 ()'er" ()'" the a""et"5 0om#a'

8/18/2019 Cf Praveen

4/6

Motives behind of M&AM&A activity is that acquiring r!s see" i!#roved

nancia$ #er*orma0e %

 econo!y of sca$e%

Econo!y of sco#e

Cross se$$ing

Resource transfer'eogra#hica$ or other diversication%

8/18/2019 Cf Praveen

5/6

 Ty#es of M&A

There are ma>or 4 t'#e" are g%ve (eo!5A hor%:ota merger 

A vert%0a merger 

Cogomerate M&A.

  += A horizontal merger: (et!ee t!o 0om#a%e" % the "ame ()"%e"" "e0tor.

E89 heath 0are" "'"tem ()'" aother heath 0are "'"tem.

2)A vertical mergers: The vert%0a ()'%g %" a%me$ at re$)0%g

overhea$ 0o"t o* o#rat%o" a$ e0oom' "0ae.E89 heath 0are "'"tem ()'" the am()a0e.

3)Conglomerate M&A: M&A  #ro0e"" the merger" (et!ee t!o

%rreevet 0om#a%e".

E89 $%"%tere"te$ $%re0tor"5 a$ "to0;ho$er".

8/18/2019 Cf Praveen

6/6

 T HA N K  I N G 

 Y O U