MF0011-Mergers & Acquisitions

Summer-2016
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Master of Business Administration - MBA Semester 3
MF0011-Mergers & Acquisitions
(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. Explain the types of mergers and acquisitions (M&A).
Each type carries 2 marks. Explanation of 5 types
Answer. Types of Mergers and Acquisitions
There are many types of mergers and acquisitions that redefine the business world with new
strategic alliances and improved corporate philosophies. From the business structure perspective,
some of the most common and significant types of mergers and acquisitions are listed below:
Horizontal Merger
This kind of merger exists between two companies who compete in the same industry segment.
Q2. Explain basic steps in organizing a merger. Explain financial aspects of mergers.
Explanation of steps in organizing a merger - 7
Explanation of financial aspects of merger - 3
Answer. The steps of integration can vary from company to company based on the nature of the
business and the complexity of the merger. The goal of a merger is business performance
improvement and performance is all about people – collectively and individually. Hence, what
works is to consider this as the top priority while defining the integration plan. Here are five steps
that I have seen worked well for some of the more successful mergers that I have been associated
Q3. Explain about Operating synergy and the role of Industry Lifecycle.
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
Q4. Write Short notes on:
1) Internalization decision
2) Recommendation for effective Cross-border Acquisition
3) Role of government policies in international M&A.
Answer. 1. Internalization decision
Internalization can refer to any process that is handled within a particular entity instead of
directing it to an outside source for completion. In business, internalization is a transaction
conducted within the confines of a corporation rather than in the open market. Internalization
can apply to a multinational corporation shifting assets between subsidiaries across borders.
Q5. Explain the types of takeovers. Explain defenses against takeover bids.
Types of takeovers - 5
Defenses against takeover bids - 5
Answer. Types of takeovers:
There are several different types of takeover. The main types are:

'Friendly Takeover' - the company bidding will approach the directors of the other
company to discuss and agree an offer before proposing it to the shareholders of that
company.
Q6. Explain the factors in Post-merger integration and 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.
Summer-2016
Get solved assignments at nominal price of Rs.125 each.
Mail us at: [email protected] or contact at
09882243490