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Merger, Acquisition and Consolidation: Presented by

Mergers, acquisitions, and consolidations allow companies to combine operations. A merger combines two companies into a single new entity, an acquisition occurs when one company purchases over 50% of another to take control of it, and consolidation dissolves existing companies to form a single new corporation, with no original firms remaining separate. These transactions allow companies to expand reach, gain market share, and achieve economies of scale through combined infrastructure and assets.

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Febin.Simon1820 MBA
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44 views

Merger, Acquisition and Consolidation: Presented by

Mergers, acquisitions, and consolidations allow companies to combine operations. A merger combines two companies into a single new entity, an acquisition occurs when one company purchases over 50% of another to take control of it, and consolidation dissolves existing companies to form a single new corporation, with no original firms remaining separate. These transactions allow companies to expand reach, gain market share, and achieve economies of scale through combined infrastructure and assets.

Uploaded by

Febin.Simon1820 MBA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MERGER, ACQUISITION

AND CONSOLIDATION

Presented By
GROUP 2
MERGER
A merger is an agreement that unites two existing
companies into one new company.

Mergers and acquisitions are commonly done to


expand a company’s reach, expand into new
segments, or gain market

 Combined infrastructure, technology, intangible


assets, etc.

Eg. Vodafone-Idea merger


Types of Mergers
• Conglomerate
A merger between firms that are involved in totally
unrelated business activities.Eg. A leading manufacturer
of athletic shoes, merges with a soft drink firm.

• Horizontal Merger
A merger occurring between companies in the same
industry. Eg. like Coca-Cola and the Pepsi
Types of Mergers
• Market Extension Mergers
A market extension merger takes place between two companies
that deal in the same products but in separate markets.Eg. Eagle
Bancshares Inc by the RBC Centura
• Product Extension Mergers
A product extension merger takes place between two business
organizations that deal in products that are related to each other
and operate in the same market.Eg. Mobilink Telecom Inc. by
Broadcom
• Vertical Merger
A merger between two companies producing different
goods or services for one specific finished product.Eg.
An automobile company joining with a parts supplier.
ACQUISITION
• An acquisition is a situation whereby one company
purchases most or all of another company's shares in
order to take control.
• An acquisition occurs when a buying company
obtains more than 50% ownership in a target
company.
• Resons are economies of scale, greater market share,
increased synergy, cost reductions etc

• Eg. Flipkart’s acquisition of eBay India


ACQUISITION
• Friendly acquisitions
Friendly acquisitions often work towards a mutual benefit for
both the acquiring and target companies.
Product B

• Unfriendly acquisitions
Unfriendly acquisitions, commonly referred to as hostile
takeovers, occur when the target company does not consent to
the acquisition. In this case, the acquiring company must
• Feature 3
gather a majority stake to force the acquisition • Feature 2
• Feature 1
CONSOLIDATION
 Consolidation the unification of two or more
corporations by dissolution of existing ones and creation
of a single new corporation.

No original firm continue to exist as separate entity

Eg; Hero cycles and Honda

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