Already have an account? Get multiple benefits of using own account!
Login in your account..!
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Reasons for mergers and acquisitions
The key reasons for mergers and acquisitions, is to maximise shareholder wealth otherwise it wouldn’t be worthwhile.
Economies of scale
Larger capacity results in reduced costs. With vertical integration it's easier to achieve this as duplication is avoided. For conglomerates, combining of some of the departments will achieve this (centralised head office, HR department, Marketing etc.)
Increased market share
Thus increasing profitability and becoming a leader in the market, which improves earnings quality.
Poor management and inefficient operations would be improved.
Reducing the competition
Profitability can be increased if competition was removed. However the implications from the competition commission need to be considered.
Group companies and taxation relief. A company which is not being able to obtain tax relief as it isn't generating profits can merge or acquire a company which generates profits.
Target company may be cash rich and this will improve group's statement of financial position (balance sheet).
Acquiring other entity and then selling off their assets.
This helps reduce risk by attaining businesses in other industries.
(a).At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? (b).b. A
Question: A 10-year deferred life assurance policy with variable benefits is issued to a select life aged 36. The policy provides the following benefits:- Sum assured is
a. Talk about the role of banking in business. b. Set out the precise role played by Investment Banking and the challenges of corporate governance.
Distinguish between Lease and Hire Purchase. What are the circumstances in which each of the system of financing is better than other?
Suppose the supply curve for a good is totally inelastic. If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result? Explain.
Factors Affecting cost of capital are elements in the business environment that cause a company cost of capital to be high and low. Figure below illustrative the various primary fa
Complete the financial reporting for each period and develop recommendations using the templates provided. Procedure 1. Read the case study. 2. Complete the financial reports
Various other types of bonds are- 1. Domestic Bonds 2. Foreign Bonds 3. Euro Bonds 4. Global Bonds 5. Floating Rate-Bonds
1. Of course a swaption will be needed. The major reasons being that Bond A is callable after 3 years and matures in 4 years whereas Bond B matures in 5 years. It is understandable
$7000 are invested at 5% per annum compound interest compounded yearly. What would be the amount after 20 years? Solution Here i = 0.05, P = 7000, and n = 20. Putting it i
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd