Summary |
The introductory chapter of this book discusses global M&A trends and focuses on the emergence of M&A wave in India. The next chapter explains the significance of economic, financial and strategic perspectives of M&A. The third chapter focuses on economic theories that have provided many possible reasons for why mergers might occur: efficiency-related reasons that often involve economies of scale, attempts to create market power, market discipline, diversification etc. The next chapter discusses various types and characteristics of M&A. The following chapters highlight the importance of due diligence, negotitation, deal structuring and methods of payment in M&A. The chapter on valuation highlights the various valuation models used for M&A process. The eighth chapter focuses on accounting issues for mergers; the chapter on corporate restructuring deals with the various types of restructuring activities. The next chapter discusses the various corporate control mechanisms and types of takeovers. The chapter on ‘Post-merger Integration’ attempts to understand different aspects related to the integration process. The regulatory and the legal framework of M&A is discussed in the following chapter. Empirical research on M&A has revealed a great deal about their trends and characteristics in the last century. Event studies have demonstrated that mergers create shareholder value, with most of the gains accruing to the target company. The chapter on M&A successes reviews research studies based on these business activities.
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