M&A's

Question 1

List motives for mergers and acquisitions.

Answer 1

Economies of scale (reducing costs), economies of scope (diversifying offerings), synergy (achieving greater value through combination), technological + regulatory change.

Question 2

What is diversification (in the context of M&A)?

Answer 2

Expanding into new technologies or adapting to regulatory changes.

Question 3

Key elements (Paul Druckers 5 principles)

Answer 3

-Acqn must contribute to clear strategic purpose
-Acqn should be a good fit
-target companies should be based on strengths
-Acqn value should be assessed accurately
-Intergration requires active management