Cover Letter KAVYA

ACQUISITIONS & MERGERS

Submitted By:

RAO KAVYA NAGESH

Project Guidance:

Prof.:- Miss.SUPRIYA TAWDE (BMS FINANCE FACULTY)

In the fulfillment of the requirement for the degree of bachelor of management Studies

UNIVERSITY OF MUMBAI

ACADAMIC YEAR: - 2011-12

Chikitsak Samuha’s

S.S. & L.S. Patkar College of Arts & Science, V.P. Varde College of Commerce & Economics,Goregaon (West), Mumbai- 400 062

Chikitsak Samuha’s

S.S. & L.S. Patkar College of Arts & Science, V.P. Varde College of Commerce & Economics, Goregaon (West), Mumbai- 400 062

CERTIFICATE

This is to certify that RAO KAVYA NAGESH of T.Y.Bachelor of Management Studies (2011-2012) has successfully completed the project on “ACQUISITIONS & MERGERS” under the guidance of Prof. Miss. SUPRIYA TAWDE

Course Co-Ordinator Principal

Project Guide / Internal Examiner

External Examinar

College Seal

ChikitsakSamuha’s

S.S. & L.S. Patkar College of Arts & Science, V.P. Varde College of Commerce & Economics,Goregaon (West), Mumbai- 400 062

Declaration

I am student of Patkar Varde college of T.Y.B.M.S. (Sem. 5) hereby declares that I have completed this project on “ACQUSITIONS AND MERGERS” during the academic year 2011-2012. The information submitted is true and original to the best of my knowledge.

Date:-

Place:- Signature of student:-

Acknowledgement

I wish to express my profound gratitude to Prof. Miss. SUPRIYA TAWDE. (BMS Finance Faculty) for her kind support and valuable guidance, for the completion of this project. I also express my sincere thanks to my Principal and BMS Co-Ordinator who guided, instructed and encouraged me.

EXECUTIVE SUMMERY

There comes a time when organic growth from within your company can only take you so far. You begin to consider potential mergers and acquisitions, yet you know that making a ‘deal’ work is one of the hardest tasks in business. Whether you are going for a full merger or forming an alliance to access new markets or expertise... the odds are against you with only 9% of European mergers rated as completely successful according to a March 2007 study by The Hay Group.

Yet if most mergers and acquisitions are not completely successful, why are more and more taking place? The figures for 2006 show that 11,088 deal announcements were made and US $1.23 trillion was spent on Mergers and Acquisitions in the US alone. (Source: Mergerstat.com)

It’s highly risky and yet more and more companies are planning their expansion this way. How can you reduce the risks and increase the chances of carrying out a successful acquisition or merger?

OBJECTIVES OF THE PROJECT

To know the effect of Acquisitions and Mergers on today’s business world.

To know the importance of Acquisitions and Mergers on today’s business world.

How the concept of Acquisitions and Mergers emerged rapidly.

To understand the role of Acquisitions and Mergers in the company’s prospects.

Some of other major objectives are as follows: Faster growth Improving profitability Gaining market power Leadership Cost reduction etc….

INDEX

SR. NO.

CONTENTS PAGE NO.

1. CONCEPTUAL FRAMEWORK OF ACQUISITION AND MERGERS

1

2. ACQUISITION:- 3

3. MERGERS OR AMALGAMATIONS 6

4.DISTINCTION BETWEEN MERGERS AND ACQUISITIONS

10

5. ADVANTAGES OF MERGERS & ACQUISITIONS 11

6. DISADVANTAGES OF MERGERS AND ACQUISITION

13

7. MERGERS AND ACQUISITIONS: VALUATION MATTERS

14

8. SYNERGY: THE PREMIUM FOR POTENTIAL SUCCESS

15

9. BUSINESS VALUATION 17

10. REGULATIONS FOR MERGERS & ACQUISITIONS 18

11. FINANCING M&A 21

12. MOTIVES BEHIND M&A 23

13. BRAND CONSIDERATIONS 26

14. THE GREAT MERGER MOVEMENT 27

15. MERGERS AND ACQUISITIONS: DOING THE DEAL

31

16. MERGERS AND ACQUISITIONS: BREAK UPS 33

17. MERGERS AND ACQUISITIONS: WHY THEY CAN FAIL

37

18. MAJOR M&A 40

19.

TOP 10 TECH ACQUISITIONS OF 2011

41

20. CASELET 1- MERGER & ACQUISITION (HINDALCO & NOVELIS)

44

21. CASELET 2- TATA CORUS 54

22. CASELET 3- TATA MOTORS AND JLR 64

23. CASELET 4- P & G AND GILLETTE 74

24. CASELET 5- RELIANCE INDUSTRIES LIMITED 76

25. CONCLUSION 82

26. REFERENCES 83

ACQUISITIONS AND MERGERS

Cover Letter KAVYA

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