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CONTENTS

Mergers & Acquisitions
• Differential Efficiency & Financial Synergy: Theory of Mergers
• Operating Synergy & Pure Diversification: Theory of mergers
• Costs and Benefits of Merger
• Evaluation of Merger as a Capital Budgeting Decision
• Calculation of Exchange Ratio

Mergers & Acquisitions
When two or more companies agree to combine their operations, where one company survives and the other loses its corporate existence, a merger is affected. The surviving company acquires all the assets and liabilities of the merged company. The company that survives is generally the buyer and it either retains its identity or the merged company is provided with a new name.
Types of Mergers
1. Horizontal Mergers
2. Vertical Mergers
3. Conglomerate Mergers
Horizontal Mergers
This type of merger involves two firms that operate and compete in a similar kind of business. The merger is based on the assumption that it will provide economies of scale from the larger......

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Approximate Word Count: 3519
Approximate Pages: 15 (250 words per double-spaced page)

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