2b. Merger and Acquisition Flashcards
Increase shareholder value, and ensure culture fit
1
Q
- Will be asked for a recommendation
A
Be clear and state recommendation.
2
Q
- Private Equity firm Purchase A
A
Why does PE firm want to buy the Co?
3
Q
- Private Equity firm Purchase B
A
What else does it own?
4
Q
- Private Equity firm Purchase C
A
What does it plan to do with it? (hold it, flip it, break apart?)
5
Q
- Company Purchase A
A
Why? What other products do they sell?
6
Q
- Other Reasons to Purchase A
A
Increase market access, boost brand and increase market share
7
Q
- Other Reasons to Purchase B
A
Diversify co holdings
8
Q
- Other Reasons to Purchase C
A
Pre-empt the competition from acquiring the co
9
Q
- Other Reasons to Purchase D
A
Inherit management talent
10
Q
- Other Reasons to Purchase E
A
Obtain patents or licenses
11
Q
- Other Reasons to Purchase F
A
Gain from synergies, cost savings, cultural integration, and expansion of dis channels
12
Q
- Other Reasons to Purchase G
A
Gain tax advantages
13
Q
- Other Reasons to Purchase H
A
Increase shareholder value
14
Q
- Due Diligence: Research Co and Industry A
A
What kind of shape is the co you’re looking at in?
15
Q
- Due Diligence: Research Co and Industry B
A
How secure are its markets, customers, and suppliers?
