Solved
Assignments for Rs.150 each
08627023490
Fall-2013
Master of
Business Administration- MBA Semester 4
MF0011–MERGERS
& ACQUISITIONS-4 Credits
(Book ID:
1732)
Assignment (60
Marks)
Note: Answers
for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Give the meaning of advantages
and disadvantages of mergers and acquisitions. Explain the types of Mergers and
Acquisitions.
Answer. Advantages and disadvantages
of mergers and acquisitions (M&A) are determined by the short-term and long-term company
strategic outlook of the new and acquiring companies. This is due to a host of
factors including market conditions, differences in business culture,
acquisition costs and changes to financial strength surrounding the corporate
takeover.
1. Operational
and financial
Q2. Write a note on the five-stage
model of mergers and acquisitions.
Answer. Steps:
Step 1: A clear and realistic shared Vision –
In the pre-merger diligence and evaluation phase, the reasons behind why a
merger makes sense for both entities would have emerged. The details from this
phase should be used to create a strong, realistic and well-articulated vision
statement. This is what would drive integration by giving the organization a
strategic direction. It is not easy to create a shared vision but I have seen
that through the endless meetings and details in the pre-merger phase, if we
are able to find an answer for this question – how will the customer benefit in
future from the joint
Q3. What do you understand by
creating synergy? Give the prerequisites for the creation of synergy. Describe
the important forces contributing to mergers and acquisitions.
Answer. Synergy is the interaction of multiple
elements in a system to produce an effect different from or greater than the
sum of their individual effects.
Prerequisites:
Step 1
Identify the
strengths and weaknesses of your team. Evaluate your employees to uncover their
interpersonal skills. Look for leadership qualities and the ability to follow
directions. Check out who’s quiet and diligent
Q4. Demerger results in the transfer
by a company of one or more of its undertakings to another company. Give the
meaning of demerger. What are the characteristics of demerger? Explain the
structure of demerger with an example.
Answer. Demerger:
A business
strategy in which a single business is broken into components, either to
operate on their own, to be sold or to be dissolved. A de-merger allows a large
company, such as a conglomerate, to split off its various brands to invite or
prevent an acquisition, to raise capital by selling off components that are no
longer part of the business's core product line, or to create separate legal
entities to handle
Q5. Explain Employee Stock Ownership
Plans (ESOP). Write down the rules of ESOP and types of ESOP.
Answer. A qualified, defined contribution,
employee benefit (ERISA) plan designed to invest primarily in the stock of the
sponsoring employer. ESOPs are
"qualified" in the sense that the ESOP's sponsoring company, the
selling shareholder and participants receive various tax benefits.
Key Rules:-
1. Vesting:-
This
discussion refers to "vested benefits," a concept that is unfamiliar
to some ESOP participants. Vesting refers to the amount
Q6. Explain the factors in
Post-merger Integration. Write down the five rules of Integration Process.
Answer. Factors:
1. Directors
must get out of the boardroom
It is
critical for executives to be actively involved in the integration. Chief
executives must lead from the front, appear approachable to new staff and
involve themselves actively in the merged company. Senior executives must make
it clear to other managers that the combination process is a priority and
requires their own time and focus.
2. Set
direction for the new business
According to
Solved
Assignments for Rs.150 each
08627023490
No comments:
Post a Comment