Name : Bidesh guin

Subject: MF0011- MERGERS AND ACQUISITIONS

Semester: III

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Question 1: Explain the types of mergers and acquisitions (M&A).

Answer: Types of Mergers and Acquisitions :Mergers and acquisitions can take several forms.
1. Horizontal: It is a merger of two competing firms engaged in the production of similar
products or providing similar services. The acquiring firm belongs to the same industry as
the target company. The main purpose of such mergers is to obtain economies of scale in
production by eliminating duplication of facilities, widening the product line, reduction in
Question 2: Explain basic steps in organizing a merger. Explain the owners decision
to sell the business
Answer: Basics Steps in Organising a Merger :-Mergers and
acquisitions are normally decided after thorough examination of all facts
and aspects. Like capital budgeting decisions, these are difficult to
reverse once they are put through, and so the organisation has to be
Question 3: Explain about Operating synergy and the role of Industry Lifecycle
Answer: Operating synergy
Synergies that enable companies to raise their operating income from existing assets,
increased growth or both are referred to as operating synergies. They are of four types:
1. Economies of scale: It may result from the merger, enabling the combined firm to become
Question 4: Write Short notes on :
1) Internalization decision
2) Recommendation for effective Cross-border Acquisition
3) Role of government policies in international M&A
Answer: The internalisation decision
1

Name : Bidesh guin

Subject: MF0011- MERGERS AND ACQUISITIONS
Semester: III
The internalisation decision is similar to a make-or-buy decision. The transaction and
coordination costs of internalisation have to be compared with costs of an external
relationship like a joint venture. These costs are the potential for holdup, loss of control over
Question 5: Explain the types of takeovers. Explain defenses against takeover bids.
Answer : Types of Takeovers
Takeovers are of different types.
1. Bailout takeovers
Bailout takeover refers to a substantial acquisition of shares in a financially weak company
in pursuance to a scheme of rehabilitation approved by a public financial institution or a
scheduled bank. The lead institutions would be responsible for ensuring compliance with the
Question 6: Explain the factors in Post-merger integration and Five rules of Integration
Process.
Answer: Factors in Post-merger Integration
Some important factors that can decide the success or failure of a merger or acquisition are:
Due diligence: Thorough due diligence involves comprehensive analysis of the financial
position, management capabilities, physical assets and intangible assets of the target
company. However, it can result in failure of the project if done badly.

Smu Assignments
Full Assignments (whole subjects)
Rs. 2500/Contact Devendra kachhi (8602695861)