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 ...
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
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 $12.14. You're not tied to anything after your purchase.
