Mereger and Aquisition

Assignment

On

Merger and Acquisition

Submitted to :- Submitted by:-

Prof. Raj Rani Bhalla Prateek Mishra

11 BSP0715

Section ‘C’

INTRODUCTION

Mergers and acquisitions (M&A) and corporate restructuring are a big part of the

corporate finance world. Every day, Wall Street investment bankers arrange M&A

transactions, which bring separate companies together to form larger ones.

When they're not creating big companies from smaller ones, corporate finance

deals do the reverse and break up companies through spinoffs, carve-outs or

tracking stocks.

Not surprisingly, these actions often make the news. Deals can be worth

hundreds of millions, or even billions, of dollars. They can dictate the fortunes of

the companies involved for years to come. For a CEO, leading an M&A can

represent the highlight of a whole career. And it is no wonder we hear about so

many of these transactions; they happen all the time. Next time you flip open the

newspaper’s business section, odds are good that at least one headline will

announce some kind of M&A transaction.

Sure, M&A deals grab headlines, but what does this all mean to investors? To

answer this question, this tutorial discusses the forces that drive companies to

buy or merge with others, or to split-off or sell parts of their own businesses.

Once you know the different ways in which these deals are executed, you'll havea better idea of whether you should cheer or weep when a company you own

buys another company - or is bought by one. You will also be aware of the tax

consequences for companies and for investors.

Defining Merger and Acquisition

The Main Idea

One plus one makes three: this equation is the special alchemy of a merger or an...