This document provides an overview of an M&A course, including expectations, approach, topics, and terminology. The course will use a conceptual framework and case studies to cover M&A motives, target valuation, deal structuring, integration, and cross-border transactions. Students will analyze M&As within strategic settings and growth strategies. Key terminology includes mergers, acquisitions, takeovers, and divestitures.

1. MERGERS & ACQUISITIONS
Term V, PGDM, 2011-12
Prof. Raj K. Kovid (kovidrk@ifimbschool.com)
Strategic Management Group
IFIM Business School, Bangaluru, India

2. M&As: The Course
• Students’ expectations
• Depth-seekers
• Approach: Text book, Papers
• Cases, Readings
• Project, Assignments
• Groups
• Data sources:
Prowess, Thompson, mergerindia.com, B
usiness Periodicals
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3. Overview of the Course
• M&As: Conceptual framework
• Regulatory framework of M&As
• Theories of M&A
• M&As Motives: Expansion and diversification, Competence &
financial synergy
• Target appraisal, Valuation
• Divestments
• Deal structuring: Accounting, taxation, methods of payments
• Corporate control: Share repurchase & Exchanges, Takeover
Defences
• Organizational issues of mergers and acquisitions
• Post-merger integration and performance
• Mergers, Strategic Alliances and Joint Ventures
• Cross-Border Transactions M&As
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4. M&As in Strategy Settings
• Corporate Strategy
• Growth Strategy (expansion/diversification)
– Organic
– Inorganic: M&As
• Alternatives to M&As
– SA & JVs
– Franchising
– Others
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5. M&As: Terminology
• Takeover
• Merger
• Acquisition
• Tender offer
• Restructuring
• Sell-off: Divestiture, Liquidation etc
• Hive-off
• LBO
• …
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6. Takeover, Acquisitions, Mergers
• Relative meaning
• Types:
– Horizontal/ Vertical
– Related/unrelated
• Nature: friendly / hostile

7. Mergers and Acquisitions
• Merger
– Two/more firms agree to integrate their operations.
– One firm survives (sometime change name post-
merger)
– Types: related/unrelated; horizontal/vertical
• Acquisition
– One firm buys a controlling, or 100% interest in
another firm with the intent of making the acquired
firm a subsidiary business within its portfolio.
– Types: Hostile/Friendly
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