国际商务管理概论与结算英文版课件修订版朱文忠 9787 81134 803 329.pptVIP

By Zhu Wenzhong LEARNING GOALS Explain the difference between mergers and takeovers State the motives for merger or integration Explain horizontal integration, forward vertical integration, backward vertical integration, lateral integration and diversification by giving some examples State hostile and friendly takeovers Explain the difference between merger and joint venture Mergers and takeovers Merger: Two or more businesses join together and operate as one organization with shared management. Mergers and takeovers Takeover: One business acquires or controls another in management through buying over 51% of the shares. Motives of mergers and takeovers Quick way of expansion Cheaper than internal growth Costs saving by cross selling Cash available Economy of scale Consolidating market position Control Globalization Diversification … Types of merger or integration Figure Types of mergers and integration Two or more firms which are exactly in the same line of business and the same stage of production join together. Types of mergers and integration Two or more firms in the different stage of production join together. Backward integration(merging with raw materials or component firms Forward integration (distribution firms) Types of mergers and integration Two or more firms with related goods which do not completely compete with each other join together. Types of mergers and integration Two or more firms in completely different lines of business join together. Also called conglomerate merger Hostile and friendly takeovers Hostile takeover : The targeted company tries to resist the bid. The targeted firm may take some measures to resist, such as asking another firm’ s bid, forming management team, or announcing new dividend plans, etc. Friendly takeover : The targeted company is willing to be acquired or invite the bid. Reasons may include the firm has met with problems or it thinks it is better under the control of another. Joint ven