Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 125 views

    Takeovers

    Uploaded by

    Cuong Huy Nguyen
    Companies take over other companies for several reasons: to find ways to use profits, acquire existing products and customers from competitors (horizontal integration), and achieve cost savings by acquiring businesses in their supply chain (vertical integration). There are two main ways companies are taken over: through a raid, where stocks are bought on the stock market, or a takeover bid, where stockholders are offered to buy their stocks at a premium price. A merger combines two companies to form a single new one.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Takeovers

    Uploaded by

    Cuong Huy Nguyen
    125 views10 pages
    Companies take over other companies for several reasons: to find ways to use profits, acquire existing products and customers from competitors (horizontal integration), and achieve cost savings by acquiring businesses in their supply chain (vertical integration). There are two main ways companies are taken over: through a raid, where stocks are bought on the stock market, or a takeover bid, where stockholders are offered to buy their stocks at a premium price. A merger combines two companies to form a single new one.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Companies take over other companies for several reasons: to find ways to use profits, acquire existing products and customers from competitors (horizontal integration), and achieve cost savings by acquiring businesses in their supply chain (vertical integration). There are two main ways companies are taken over: through a raid, where stocks are bought on the stock market, or a takeover bid, where stockholders are offered to buy their stocks at a premium price. A merger combines two companies to form a single new one.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    125 views10 pages

    Takeovers

    Uploaded by

    Cuong Huy Nguyen
    Companies take over other companies for several reasons: to find ways to use profits, acquire existing products and customers from competitors (horizontal integration), and achieve cost savings by acquiring businesses in their supply chain (vertical integration). There are two main ways companies are taken over: through a raid, where stocks are bought on the stock market, or a takeover bid, where stockholders are offered to buy their stocks at a premium price. A merger combines two companies to form a single new one.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Takeovers

    Discussion
    1. Why do companies take over other companies?
    2. How do companies take over other companies?
    3. What is a merger?
    4. Have there been any big takeovers or mergers in the news recently?
    Find the answers to the following questions in the Reading
    1. Why do companies take over other companies?
    2. How do companies take over other companies?
    3. What is a merger?
    Comprehension
    Explain the following in your own words:
    1. The difference between horizontal and vertical integration
    2. The difference between backward and forward integration
    3. The difference between a raid and a takeover bid
    4. The difference between a friendly and a hostile bid
    5. Asset-stripping
    Why do companies take over other companies?
    • Successful companies have to find ways of using their profits.
    • … sometimes it’s easier to take over other companies with existing products and
    customers. Acquiring a competitor in the same field of activity (horizontal integration)
    gives a company a larger market share and reduces competition.
    • Companies can also acquire businesses involved in other parts of their supply chain
    (vertical integration), generally to achieve cost savings.

    How do companies take over other companies?


    • … a raid, which simply involves buying as many of a company’s stocks as possible on the
    stock market.
    • … a takeover bid: a public offer to a company’s stockholders to buy their stocks at a
    certain price (above the current market price) during a limited period of time.

    What is a merger?
    • To combine the two companies to form a single new one.
    Reading
    Why do companies take over other companies?
    • Successful companies have to find ways of using their profits.
    • … sometimes it’s easier to take over other companies with existing products and customers. Acquiring
    a competitor in the same field of activity (horizontal integration) gives a company a larger market
    share and reduces competition.
    • Companies can also acquire businesses involved in other parts of their supply chain (vertical
    integration), generally to achieve cost savings.

    How do companies take over other companies?


    • … a raid, which simply involves buying as many of a company’s stocks as possible on the stock market.
    • … a takeover bid: a public offer to a company’s stockholders to buy their stocks at a certain price
    (above the current market price) during a limited period of time.

    What is a merger?
    • To combine the two companies to form a single new one.
    1. Diversify
    2. Retail outlets
    3. Controlling interest
    4. Listed companies
    5. Fees
    6. Conglomerates
    7. Synergy
    8. Market capitalization
    9. Subsidiaries
    10.Pension fun
    1. Horizontal integration means buying competitors in the same
    field of activity; vertical integration means buying companies
    involves in other parts of the supply chain.
    2. Backward integration means buying suppliers of raw materials
    or components; forward integration means buying distributors
    or retailers.
    3. A raid means buying a company’s stocks on the stock market; a
    takeover bid means making an offer to a company’s
    stockholders to buy their stocks.
    4. A friendly bid is when the directors of a company agree to a
    takeover; a hostile bid is when they do not.
    5. Asset-stripping means buying a company in order to sell its
    profitable parts, or to close the company and sell its assets at a
    profit.
    forward integration means
    buying distributors or retailers
    Vertical: buying
    companies
    involves in
    other parts of
    the supply chain

    Horizontal

    Backward integration means


    buying suppliers of raw materials
    or components

    Horizontal: buying competitors in


    the same field of activity

    You might also like