FALL-2015
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assignments at nominal price of Rs.125 each.
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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. Elaborate on the basic steps in
organizing a merger and explain on the five stage model of mergers and
acquisitions.
Answer. Steps in a Merger
There are
three major steps in a merger transaction: planning, resolution and
implementation.
Planning, which is the most complex part of the
merger process, entails the analysis, the action plan, and the negotiations
between the parties involved. The planning stage may last any length of time,
but once it is complete, the merger process is well on the way.
More in
detail, the planning
Q2. Synergy is the additional value
that is generated by the combination of two or more than two firms creating
opportunities. Explain the role of industry life cycle and pre requisites for
creation of synergy.
Answer. Role of industry life Cycle
In the
introduction stage of the life cycle, an industry is in its infancy. Perhaps a
new, unique product offering has been developed and patented, thus beginning a
new industry. Some analysts even add an embryonic stage before introduction. At
the introduction stage, the firm may be alone in the industry. It may be a
small entrepreneurial company or a proven company which used research and
development funds and expertise to develop something new. Marketing refers to
Q3. Corporate restructuring is a
broad based business initiative that results in major change of size,
ownership, control and/or management. Write down the characteristics of
corporate restructuring and explain the types of corporate restructuring.
Answer. MEANING & NEED FOR
CORPORATE RESTRUCTURING
Corporate
restructuring is the process of redesigning one or more aspects of a company.
The process of reorganizing a company may be implemented due to a number of
different factors, such as positioning the company to be more competitive,
survive a currently adverse economic climate, or poise the corporation to move
in an entirely new direction. Here are some examples of why corporate
restructuring may take place and what it can mean for the company.
Restructuring a corporate entity is often a necessity when the company has
grown to the point that the original structure can no longer efficiently
Q4. Leveraged Buyouts (LBO) is a
financing technique of purchasing a private company with the help of borrowed
or debt capital. Explain the modes of LBO financing and governance aspects of
LBOs.
Answer. The acquisition of another company
using a significant amount of borrowed money (bonds or loans) to meet the cost
of acquisition. Often, the assets of the company being acquired are used as
collateral for the loans in addition to the assets of the acquiring company.
The purpose of leveraged buyouts is to allow companies to make large
acquisitions without having to commit a lot of capital.
Q5. Joint Ventures (JV) have become
an important strategic option for many businesses. Give the meaning of JV with
example. Explain the characteristics of Joint Ventures. Also explain the
Rationale for Joint Ventures and alternatives to JV’s as expansion strategy
options with example.
Answer. Joint Venture
A joint
venture (JV) is a business agreement in which the parties agree to develop, for
a finite time, a new entity and new assets by contributing equity. They
exercise control over the enterprise and consequently share revenues, expenses
and assets. There are other types of companies such as JV limited by guarantee,
joint ventures limited by guarantee with partners holding shares.
Q6. Amalgamation is the nature of
merger is an amalgamation/consolidation which satisfies/ meets the following
conditions. Explain the two methods of amalgamation. Explain the treatment of
Goodwill arising on Amalgamation and treatment of reserves of amalgamation.
Answer. Methods of Amalgamation:
Pooling of interest Method:
Steps
involved:
1. The
assets, liabilities and reserves are recorded by the transferee company at the
current value.
2. The net
profit/net loss of the transferor company is aggregated with that of the
transferee company or transferred to the General Reserve, if any.
FALL-2015
Get solved
assignments at nominal price of Rs.125 each.
Any issues
mail us at: subjects4u@gmail.com or contact at
09882243490
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