| Author | Dhawan, Arun |
| Call Number | AIT RSPR no.ESM-99-14 |
| Subject(s) | Consolidation and merger of corporations
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| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | Mergers and Acquisition is a useful technique to fulfill the firms overall orientation towards growth. Though, there can be various possible motives that firms might engage in Mergers and Acquisition activity. One of the most common is expansion. Acquiring the company in a particular product line and geographical area can be a quicker way to expand than internal expansion. An acquisition may provide some synergistic benefit for the acquirer such as where two lines of business complement each other. This benefit may come in the form of economies of scale, efficient production, increased market share, reduced competition and better use of resources. This increase in efficiency and profitability will lead to a value creation of the firm. Considering these advantages, use of mergers and acquisition has been increasing sharply during the past several years. Continued growth is very likely because it serves numerous corporate needs and growth motivation. The process of valuation in an acquisition is complicated and involves many players. From the buyer perspective, the process might involve the following interrelated stages: Strategy formulation, identification and screening of candidates, valuation of the target, negotiation, and implementation. This study covers the strategic motives of mergers and acquisition, their valuation and the post acquisition integration. The study was done through literature review and a case study of the recent acquisition. The purpose of this case research was to understand the strategic motives and valuation techniques through interviews and interactions with the experts on the subject. The case study also helped to understand the strategic motives and valuation models used in an acquisition. |
| Year | 1999 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Academic Program/FoS | Master of Business Administration (Executive)-(EMBA) (Publication code = ESM) |
| Chairperson(s) | Gupta, Joyti P. |
| Examination Committee(s) | Johri, Lalit M.;Swierczek, Fredric W. |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999 |