文档介绍：MBA – Mergers & Acquisitions Part I
MBA – Mergers & Acquisitions
Eric De Keuleneer
Part I
2012
Types of M & A
Mergers :
Real mergers “mergers of equals”3>. Rare.
Mergers with dominant partner
Acquisitions technically merger
Acquisitions :
For cash
For shares, or mix
Mergers technically acquisitions
2012
Types of M & A
Industrial :
Vertical
Horizontal : - size, market power, …
- diversity, product range, cross selling
Financial : - P/E
- leveraging – diversification
Market power : - intended, not announced
2012
Types of M & A-Industrial
Industrial :
- theory of the firm : Chandler: the visible hand of mgmt
- Is creativity better in markets? – firms?
- Is investment easier in markets? – firms?
- Is stability-security higher in markets? – firms?
- What is the scarce resource?
2012
Industrial - Vertical
Absorb suppliers, absorb transformers, absorb distributors, “capturing the value chain”
Security of supplies, of outlet.
Importance of make-or-buy decision. Opportunity costing
Own your real estate airplanes, ships, …?
Own your suppliers, distributors What are core suppliers, distributors?
2012
Opportunity costing
You own a house, and run a restaurant in it. It makes a month. What is the profitability of the restaurant?
A bank pays on average 1 % on its clients deposits (50% current accounts, remuneration 0,5 % - 50 % saving deposits, remuneration %) it charges 4 % on its mortgage loans. What is the gross profitability of mortgage lending?
2012
Industrial - Vertical
What are your core activities,? (billing, ICT,…).
Evolution :
- Integration by necessity (autarcy), tax systems, …
- Coca-Cola bottling Co’s
- Airline reservation systems
- banking : - traveller checks, credit card – fund management - broking
- back offices
- ICT, accounting, call centers
2012
Industrial – Horizontal
Size : production efficiency
Purchasing power
Production economies of scale (-