Mergers- types of merger– theories of mergers- operating, financial and managerial synergy of mergers – value creation in horizontal, vertical and conglomerate mergers – internal and external change forces contributing to M & A activities- Impact of M & A on stakeholders.
M & A – A strategic perspective- industry life cycle and product life cycle analysis in M&A decision, strategic approaches to M&A- SWOT analysis, BCG matrix.
Corporate restructuring – significance - forms of restructuring – joint ventures – sell off and spin off – divestitures – equity carve out – leveraged buy outs (LBO) – management buy outs – master limited partnership– Limited Liability Partnership (LLP) in India: Nature and 91 incorporation of LLP-De merger- strategic alliance- buyback of shares.
Merger Process: Dynamics of M&A process - identification of targets – negotiation - closing the deal. Five-stage model – Due diligence– Types - due diligence strategy and process - due diligence challenges. Process of merger integration – organizational and human aspects – managerial challenges of M & A.
Methods of financing mergers – cash offer, share exchange ratio – mergers as a capital budgeting decision Synergies from M&A: Operating and Financial synergy Accounting for amalgamation – amalgamation in the nature of merger and amalgamation in the nature of purchase- pooling of interest method, purchase method – procedure laid down under Indian companies act of 1956
Takeovers, types, takeover strategies, - Takeover defences – financial defensive measures – methods of resistance – anti-takeover amendments – poison pills
Legal aspects of Mergers/amalgamations and acquisitions/takeovers- Combination and Competition Act- Competition Commission of India (CCI), The SEBI Substantial Acquisition of Shares and Takeover code
Practical component: