Mergers_&_Acquisitions

30-14
Cash versus Common Stock
• Overvaluation
– If the target firm shares are too pricey to buy with cash, then go with stock.
• Taxes
– Cash acquisitions usually trigger taxes. – Stock acquisitions are usually tax-free.
Tafrig p rm e a ty o N ufe tiw rv m alue
Nesw hairsessued
OsldharN esesw hairsessued
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
• The main reason why they do not lies in failures to integrate two companies after a merger.
– Intellectual capital often walks out the door when acquisitions aren't handled carefully.
– If two all-equity firms merge, there is no transfer of synergies to bondholders, but if…
• One Firm has Debt
– The value of the levered shareholder’s call option falls.

• Cost Reduction
▫ Replacement of ineffective managers ▫ Economy of scale or scope
• Tax Gains
▫ Net operating losses ▫ Unused debt capacity
• Reduced capital requirements
4
▪ A firm can be acquired by another through selling all of its assets. ▪ The acquired firm may not vanish since its “shell” may be retained. ▪ A formal vote of the target shareholders is needed.
State 1
State 2
Market Value
Probability
.5
.5
Firm A before merger 80
20
50
Firm B before merger 10
40
25
Firm AB after merger 90
60
75
15
▪ Both Firms Have Debt
▪ The value of shareholders falls while that of bonderholders rises. ▪ Suppose firm A has $30 debt and firm B has $15 debt
11
▪Earnings Growth
▪ If there are no synergies or other benefits to the merger, then the growth in EPS is just an artifact of a larger firm and is not true growth (i.e., an accounting illusion).

重庆邮电大学 舒强 博士/副教授
12
第六章 扩张战略
水平一体化战略的实施条件
• • • • •
企业可以在特定地区获得一定程度的垄断； 规模的扩大可以提供很大竞争优势； 企业具有管理更大的组织所需要资金与人才； 市场经济日益发达，生产出现结构性过剩； 改变规模小、产地多、成本高、资源浪费严重、 项目重复建设等现象。
并购后的整合
• 有形整合
• 经营战略整合 • 人力资源整合
• 组织与制度整合
• 资产债务整合 • 财务整合等
• 无形整合
• 文化整合
2019/2/20 重庆邮电大学 舒强 博士/副教授 9
第六章 扩张战略
2、一体化战略 • 纵向 / 垂直一体化（ vertical integration ）
• 前向一体化（forward integration） • 特许经营（franchising） • 后向一体化（backward integration）
• 按是否利用目标公司本身资产支付并购资金划分 • 按照并购出资方式划分
• • • • 出资购买资产式并购 出资购买股权式并购 股票置换资产式并购 股票置换式并购 • 杠杆收购(leveraged buy-out) • 非杠杆收购
• 按照并购操作来划分
• 品牌特许型，托管型，租赁型，承包型，划拨型， 债权债务承担型，管理者收购型和联合收购型等
2019/2/20
重庆邮电大学 舒强 博士/副教授
13
第六章 扩张战略
水平一体化的战略优势 • 规模经济 • 获取无形资产 • 减少竞争对手 • 较容易的生产能力扩张
2019/2/20
重庆邮电大学 舒强 博士/副教授
14
第六章 扩张战略

OR
B acquires shares in A from A’s shareholders in exchange for cash. A, as a subsidiary of B, may subsequently transfer its trade and assets to its new parent company, B (transfer of shares).
Econ 906 Corporate Finance
Mergers and Acquisitions 兼并与收购
Readings: GT Chapter 20 Copeland & Weston Chapter 18 BM Chapter 32 RWJ Chapter 30
1
பைடு நூலகம்
Learning outcomes
6
Agency Problems
• Agency problem arises when managers own only a fraction 分数 of the ownership shares of the firm
• Hence, work less vigorously and consume more perquisites 津贴 at the cost of majority owners
Methods of mergers and acquisitions
Acquisitions - B takes over A- B acquires trade and assets from A for cash. A is then liquidated, and the proceeds 所得款项 received by the old shareholders of A (transfer of assets).