Mergersandacquisitions Flashcards
What is the first step that we must consider in mergers and acquisitions
The first step when having a merging and acquisition case is to determine the goals and objectives of this merge or acquisition? Why are we buying this business ? Is there a better alternative? Is it to increase market access? or to diversify the holding of the company?
Moreover is it to pre-empt (go ahead) the competition? or are we using it to gain tax advantages
What is the second step used in mergers and acquisition
The second step in mergers and acquisitions is to see how much are they paying? is the price fair? and how are they going to pay for it? Also can they afford it? Furthermore, if the economy sours can they still pay their debt?
What is the third step in mergers and acquisition case analysis
The third step in merger and acquisition case analysis is to research company profile and industry.
We can ask the following questions about the company ? What kind if shape is the company in? and How secure are its markets and customers?
Moreover, how is the industry doing overall and how is this company doing compared to the industry? Furthermore, how will our competitors respond to the merge/ acquisition step? Are there any legal reasons we cant acquire/merge?
what is the Fourth step in acquisition and merge policy
The fourth step in merge and acquisition is to investigate the exit strategy and how long are they planning to keep the merge/acquisition?
Did they buy it to break it up and sell off parts of it?
