Results 1 to 2 of 2

Thread: Notes For CA Final - Mergers and Acquisition.

  1. #1
    deepika
    Guest

    Thumbs up Notes For CA Final - Mergers and Acquisition.

    Mergers and Acquisition

    1. A firm can buy another enterprise and integrate with the existing set up. This is referred to as merger. There are three types of merger. They are (a) Horizontal merger (b) Vertical merger (c) Conglomerate.

    2. Horizontal merger represents a merger of firms engaged in the same line of business.

    3. Vertical merger represents a merger of firms engaged at different stages of production in an industry.

    4. Conglomerate merger represents a merger of firms engaged in unrelated lines of activities.

    5. A firm allowing the bought enterprise to co-exist but bringing the management under its control is referred to as acquisition.

    6. Value of the merged enterprise is expected to be greater than the values of the individual enterprises constituting the merger.
    The difference is called as synergy or benefit.

    7. Synergy can be classified into two: (a) Income synergy and (b) Capital synergy.

    8. Fill in the blanks

    a. Smaller company taking over a bigger one is called as………………
    b. Division of a company is made as a separate enterprise is referred to as …………………
    c. Managerial team buying the managing enterprise is referred to as …………………………
    d. Benefit – Cost = ………………
    e. Cost = Purchase consideration paid – Value of ………………. firm.


    You Can Also Download This From PDF Format
    Attached Files Attached Files

  2. #2
    sagarpandurangi
    Guest

    Smile

    Fabulous file! U seem like a finance maestro !
    great job on the other two threads as well !

Tags for this Thread

Bookmarks

Posting Permissions

  • Register / Login to post new threads
  • Register / Login to post replies
  • Register / Login to post attachments
  • You may not edit your posts
  •