MERGERS & ACQUISITIONS

MERGERS & ACQUISITIONS

MERGER
A merger is a combination of two corporations in which only one corporation survive and the merged corporation goes out of existence.

ACQUISITION
A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm.

TYPES OF MERGERS

TYPES OF MERGER
Horizontal merger melibatkan dua perusahaan yang beropera si dan berkompetisi di jenis aktivitas bisnis yang sama.

Vertical merger terjadi antara dua perusahaan yang memiliki tahap produksi yang berbeda dalam operasional perusahaannya.

Conglomerate merger melibatkan dua perusahaan yang memiliki aktivitas yang benar-benar berbeda.

REASONS FOR MERGERS & ACQUISITION

Sinergi (Synergy)

Dengan melakukan sinergi, mereka berharap bisa memperoleh banyak manfaat sbb:
1. Penghematan biaya,

2. Perluasan pasar,
3. Penguasaan teknologi, 4. Akses dana yang lebih besar, dll.

MERGER
ADVANTAGE
Pengurangan tenaga kerja Economies of scale

DISADVANTAGE
Pengambilan keputusan perlu proses yang lama

Penguasaan teknologi baru

Meningkatkan jangkauan pasar perusahaan Peluang memperoleh pembiayaan yang lebih besar

MERGER FINANCING
Mergers may be paid for in several ways 1. Use all cash 2. Use all securities 3. Combination

MERGER PROFESSIONALS
When a company decides it wants to acquire or merge with another firm, it typically does so using the services of attorneys, accountants, and valuation experts

MERGER NEGOTIATIONS
Most M&As are negotiated in a friendly environment. The process usually begins when the management of one firm contacts the target companys management, often through the investment bankers of each firm. The management of both firms keeps the respective boards of directors up to date on the progress of the negotiations because mergers usually require the boards approval. Sometimes this process works smoothly and leads to a quick merger agreement.

MERGER APPROVAL PROCEDURES

Special Committees of the Board of Directors
Fairness Opinions Voting Approval

SPECIAL COMMITTEES OF THE BOARD OF DIRECTORS

Directors who might personally benefit from the merger, such as when the buyout proposal contains provisions that management directors may potentially profit from the deal, should not be members of this committee. This committee should seek legal counsel to guide it on legal issues such as the fairness of the transaction, the business judgment rule, and numerous other legal issues.

FAIRNESS OPINIONS
It is common for the board to retain an outside valuation firm, such as an investment bank or a firm that specializes in valuations, to evaluate the transactions terms and price.

VOTING APPROVAL
The exact percentage necessary for stockholder approval depends on the articles of incorporation, which in turn are regulated by the prevailing state corporation laws.

ASSIGNMENTS
1. Cari contoh perusahaan yang melakukan merger dan akuisisi. 2. Jelaskan termasuk jenis merger apa yang telah dilakukan perusahaan tersebut dan uraikan: Mengapa perusahaan tersebut melakukan merger / akuisisi? Dampak apa yang terjadi setelah perusahaan tersebut melakukan merger & akuisisi Strategy apa yang digunakan?

THANK YOU