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explain the advantagesand disadvantages of mboadvantages of mbodisadvantages of mbosale can be arranged quickly management will be highly
determine the management buy-outs management buy-outs mbosthe management of company buy out the shareholders management will usually require
benefits of going private companya public company has its shares purchased by a small group of people and ceases to be listed on stock exchange this
what is the de-mergerthis is splitting up of a group into two or more separate bodies the group is split into separate entities but the shareholders
potential drawbacks of divestment- there may be some loss of economies of scale fixed overheads would have a lower capacity to recover them- cash
what is the benefits of divestmentcedil releases cash tied up to finance more promising opportunitiescedil reduces diversification and complexity of
divestment of company re-organisationsadisinvestment or divestment is selling part of the business or subsidiary to another third partyreasons and
failure of mergers and takeoversfailure of mergers and takeoverspoor strategic plan will result in slow or failed integration integration
explain the post-acquisition integration planpost-acquisition integration plankeep all channels of communications open by
peter drucker gave five rules for acquisitions to be more successful contribution eg the acquirer can add value to the target organisation other than
how howan acquisition should be implemented1 directors of the target company must be approached first and a firm offer of a price made on condition
post-acquisition integrationin order to have constructive discussions between organisations its strongly recommended that all participants in process
what theoretical share price share for share exchangeestablish what theoretical share price may be after the merger in a share for share exchange
post-merger eps and post-mergershare pricean estimated post-merger eps can be calculated bycombined earnings total shares after mergeran estimated
post-acquisition effect on epsif the consideration is completely in shares one of the effects would be a dilution in eps suffered by predator company
define the both cash and share exchangegenerally both cash and share exchange are used to make the offer more attractive other forms of consideration
earn out arrangements consideration could be delayed and paid only upon achievement of certain criteria for illustration the predator company
what is share exchange predator company offers their shares in exchange for target companys shares so target shareholders become part of
define the term- cash purchases shareholders of the target company are bought out completely and have no further stake in business this
explain the meaning of - purchase considerationthe type of offer made to target companys shareholders would
define the general principles of the city codegeneral principles of the city code information available to all shareholders and should be free
state about the investigate of competition directorate competition directorate will generally investigate the below areasi mergers and
explain the role of commission authoritiescompetition directorate is one of the independent public bodies which help ensure healthy competition
regulation of mergers and acquisitions mergers and acquisitions are regulated bycompetition commissionif office of fair trading thinks that merger
what are the predator shareholderspredator companys shareholders maynt approve the bid for various reasonsreduction in epsif consideration is in