100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary ch.1-4 - FinMan 354 summaries $12.52   Add to cart

Summary

Summary ch.1-4 - FinMan 354 summaries

 23 views  0 purchase
  • Course
  • Institution

I am a third year Bcom Economic student that has a passion for finance. I would love to do my honours in Financial management and that is why I work hard not only in class but after hours as well. I like making notes that is easy to read in my handwriting. Having good notes makes a huge difference ...

[Show more]

Preview 4 out of 48  pages

  • September 30, 2024
  • 48
  • 2024/2025
  • Summary
avatar-seller
Chapter 1

Strategic objective Type of transaction


1 Expanding growing in same industry Horizontal congeneric MBA
Joint venture
strategic alliance


2 Expanding into unrelated
industry Conglometric MYA
Joint venture
strategic alliance


3 Gaining control over the supply chain Vertical MRA

4 Seeking operating h financial synergies Horizontal
vertical
congeneric
Conglomerate MBA

5 Accessing new technologies patents Horizontal
licences skills capabilities vertical
congeneric
Conglomerate MYA
Joint Venture
strategic alliances


6Restructuring an entity's organisational Diversities
structure

7 Restructuring an entity's ownership Equity carve outs
and or capital structure spinoffs
Rights issues
Tracking stocks
share repurchase
leveraged recapitalisation
Leveraged buyouts LBO's
management buyouts MBO's
Exchange offers
Dual class recapitalisation

, Mergers




note the term entity is used as mergers are not restricted to
private public listed companies

note an entity's name often reflects the fact that it came into
existence due to a merger

mergers can be
horizontal vertical conglomerate congeneric


1 Horizontal

merger between rivals operating in the same industry

Why




one dissolves into the other entity
entity
small larger

, 2 Vertical mergers

Merger between companies operating different levels
in a supply chain




Why



As lower levels
of competition in a industry can also disadvantage consumers

by other stakeholders vertical mergers beyond a certain transaction size are also
subject to regulatory approval




3 Conglomerate merger


merger between companies operating in different industries



Why




note its very
difficult to manage widely divergent businesses effectively




a congeneric merger

merger between companies that are 1 not producers of the same product

, 2 not in a supplier producer
distruber relationship


As entities are allied in nature they could already share distribution
channels or use overlapping technologies or production systems

why

note
Acquisitions




Most aquisitions A B A Target
becomes
subsidiary of the aquirer
Regulations are NB_

Types horizontal vertical conglomerate congeneric


1 Friendly aquisitions

The target's board considers the aquisitions offer bid
as fair he agrees that the deal would be
mulally beneficial
The target's board hence calls on shareholders to approve proposal


example Absa Nestle



2 Hostile acquisition

Target's board

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller margitgilliland. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.52. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

73918 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.52
  • (0)
  Add to cart