MF0011–Mergers & Acquisitions

SUMMER-2015

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Master of Business Administration-MBA Semester 3

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 advantages of mergers and acquisitions

The operational and financial advantages of mergers and acquisitions are widely documented and may also present the

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

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

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

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 of time an employee must work before acquiring a non-forfeitable

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

SUMMER-2015

Get solved assignments at nominal price of Rs.120 each.

Mail us at: subjects4u@gmail.com or contact at

09882243490