...to pour into an expanding number of domestic and international PE funds. Investment in P.E. firms adds value and managerial capacity in companies that are in need of rejuvenation and intend to compete in the global environment. Value addition is the main feature of investment. What is Private Equity? In finance, private equity is an asset class consisting of equity investments in companies that are not traded on a public stock exchange. Investments typically involve a transformational, value added, active management strategy. Private equity is medium to long-term finance provided in return for an equity stake in potentially high growth unquoted companies. Private equity provides long-term, committed share capital, to help unquoted companies grow and succeed. Private equity is a broad term which commonly refers to any type of non-public Ownership Equity securities that are not listed on a public exchange. At the start of a business, owners put some funding into the business to finance assets. Businesses can be considered for accounting purposes to be sums of liabilities and assets (also known as the accounting equation). After liabilities have been accounted for, the positive remainder is deemed the owner's interest in the business. Thus, in accounting terms, ownership equity is the remaining interest in all assets after all liabilities are paid. Obtaining private equity is very different from raising debt or a loan from a lender, such as a bank. Lenders have...
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... | |Mergers & Acquisitions: An Introduction | |Prof. Ian Giddy, New York University | |[pic] | | | |INTRODUCTION | |This is an introduction to the subject of mergers, acquisitions, buyouts and divestitures as covered in my Mergers & Acquisitions course. The purpose is to delineate how and why a merger | |decision should be made. The course focuses on mergers and acquisitions in the context of private as well as publicly traded companies. Acquisitions of private companies account for the | |majority of transactions. To properly assess a potential merger we need to perform...
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...Mergers and Acquisitions CHAPTER 21 OPENING CASE I n April 2007, Netherlands-based ABN AMRO and U.K.-based Barclays announced a merger that would create the world’s largest asset manager as well as one of the world’s five largest banks. The value of the deal was about €67 billion ($91.07 billion). Under the terms of the merger, Barclays would offer 3.225 shares of the new company for each share held by ABN AMRO shareholders. Also, ABN AMRO agreed to sell LaSalle Bank to Bank of America for $21 billion, which would result in a €12 billion distribution to shareholders. How do companies like ABN AMRO and Barclays determine whether a merger is a good idea? This chapter explores reasons that mergers should take place, and, just as important, reasons why they should not. There is no more dramatic or controversial activity in corporate finance than the acquisition of one firm by another or the merger of two firms. It is the stuff of headlines in the financial press, and it is occasionally an embarrassing source of scandal. The acquisition of one firm by another is, of course, an investment made under uncertainty, and the basic principles of valuation apply. One firm should acquire another only if doing so generates a positive net present value for the shareholders of the acquiring firm. However, because the NPV of an acquisition candidate can be difficult to determine, mergers and acquisitions, or M&A activities, are interesting topics in their own right. Some of the special...
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...A PROJECT TO STUDY Acquisition OF TATA AND CORUS 0BY Jigar Gandhi Roll No- 11 PGDM - 4TH semester INTRODUCTION –( MERGERS AND ACQUISITION ) In this changed business paradigm only those organization rule who visualize the possibilities before they appear as plausible. Present Business environment, characterized by the globalization and liberalization, accommodates organization that are coming up with innovative strategies to survive and flourish. Companies in the global economies climate are thriving to each the pinnacle of the successes seeking competitive edge of over their rivals. While the waves liberalization and deregulation have been shaking the corporate shore around the global the domestic organizations are falling prey to the fierce competition and unprecedented challenges carried by this emerging business scenario. The recessionary trend consequents to the wall Street tsunami has made for the organization a maze with no exit . Drowning in the luxury of producing goods only to keep life simple is suicidal, rather an un quenched thirst must always prevailing that makes the quest for the value sustainable. Existence of keen competition with number and volume also made the texture of the competitor stronger shock absorber both finally and strategically creating a wide exposure for the business enterprises to build armour for protecting themselves from the threats lying in and forthcoming from the environment. Thus, organizations are left with...
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...investment strategy for a pension fund, this book cannot help but clarify your thinking.” (Benefits & Compensation International) “This book stakes Fraser-Sampson’s claim to be recognised as one of the great thinkers on portfolio theory, ranking alongside Markowitz and Swensen.” (Rebecca Meijlink, AlphaBet Capital) “I somehow expected another version of Swensen’s “Pioneering Portfolio Management”. However, this is in my eyes a huge improvement and a surprisingly entertaining and satisfying read.” (Thomas Meyer, EIF, author: Beyond the J-Curve) Private Equity as an Asset Class For other titles in the Wiley Finance Series please see www.wiley.com/finance Private Equity as an Asset Class Guy Fraser-Sampson Copyright © 2007 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on www.wiley.com All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or...
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...Mergers and Acquisitions Basics Mergers and Acquisitions Basics All You Need To Know Donald DePamphilis Amsterdam • Boston • Heidelberg • London New York • Oxford • Paris • San Diego San Francisco • Singapore • Sydney • Tokyo Academic Press is an imprint of Elsevier Academic Press is an imprint of Elsevier 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Elsevier, The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB, UK Copyright © 2011 Elsevier Inc. All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary. Practitioners and researchers must always rely on their own experience and knowledge...
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...Private Equity (PE) companies of Bangladesh have increased their investments significantly. Easy access to capital, as well as inexpensive leverage, has led to an increase in activity of PE buy-outs of market leaders with strong cash flow. The competition for objects that are for sale has amplified, which has resulted in price increases of the objects. The higher prices offered by the PE companies also affects the number of initial public offerings (IPO) on the Dhaka and Chittagong Stock Exchanges. One reason for the small number of current IPOs is that the objects simply have been valued higher by PE companies than they would do in an IPO. PURPOSE: The purpose with this thesis is, from a shareholder’s point of view, to analyze and describe the reasons of making an IPO instead of selling to a PE company. METHODOLOGY: Since the research is based on gathering and understanding information regarding specific persons’ choices and motives, a qualitative approach has been conducted. CONCLUSION: All the main motives of the IPO could have been achieved by selling to PE Company, except the motive of attaining share liquidity. One of the attractive reasons for share liquidity is that shareholders easily can choose between reducing ownership, increasing ownership or remain with existing shares. Another attractive reason is that financial institutions normally become shareholders, which in turn increases the credibility of the company. Eight out of the ten companies had parallel plans...
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...A Blueprint for Corporate Governance Fred R. Kaen AMACOM AMERICAN MANAGEMENT ASSOCIATION A Blueprint for Corporate Governance This Page Intentionally Left Blank A Blueprint for Corporate Governance Strategy, Accountability, and the Preservation of Shareholder Value Fred R. Kaen American Management Association New York • Atlanta • Brussels • Buenos Aires • Chicago • London • Mexico City San Francisco • Shanghai • Tokyo • Toronto • Washington, D. C. Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Kaen, Fred R. A blueprint for corporate governance : strategy, accountability, and the preservation of shareholder value / Fred R. Kaen. p. cm. Includes bibliographical references and index. ISBN 0-8144-0586-X 1. Corporate governance. 2. Corporate governance—United...
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...Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL FOREWORD BY JOSEPH R. PERELLA Investment Banking Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, please visit our Web site at www.WileyFinance.com. Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL John Wiley & Sons, Inc. Copyright C 2009 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976...
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...countries in the field of venture financing 23 2.2. Current situation and peculiarities of the development of venture capital industry in Russia 28 2.3 The role of state in the system of Russian venture financing 34 Chapter 3: Analysis of venture financing company and recommendations for it development on the example of JSC "Solar-Optic" 45 3.1. Analysis of key financial and economic indicators of JSC "Solar-Optic Ltd" 45 3.2. Analysis of the process of financing of Innovation Company of JSC "Solar-Optic” 55 3.3. Analysis of the sources of funding and recommendations for attraction of potential investor 62 Conclusion 71 Used Material 76 Appendixes 80 Introduction Diversification of the economy, and shift from primary industries to high-tech industry, is not only one of the major challenges facing the Russian economy at that moment, but also largely depends on the pace of development of technology-based entrepreneurship. World experience shows that small and medium-sized innovative companies as economic actors most motivated and flexible in achieving output of scientific and technical products to the market and play an important role in the development of new promising niches. However, high-tech companies in the early phase of its development in the majority cases are not attractive to foreign and Russian investors. Not receiving financial support, they stagnate or close its infancy. Choice of financial instruments and to attract the required...
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...(Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating Stakeholder Claims (Chapter 2) Competing with Microsoft (Chapter 3) Analyzing Competitive Advantage (Chapter 4) How to Keep the Salsa Hot (Chapter 5) Developing a Global Strategy (Chapter 6) Comparing Vertical Integration Strategies (Chapter 7) ● Identifying News Corp’s Strategies (Chapter 8) ● Speeding Up Product Development (Chapter 9) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●...
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...(Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating Stakeholder Claims (Chapter 2) Competing with Microsoft (Chapter 3) Analyzing Competitive Advantage (Chapter 4) How to Keep the Salsa Hot (Chapter 5) Developing a Global Strategy (Chapter 6) Comparing Vertical Integration Strategies (Chapter 7) ● Identifying News Corp’s Strategies (Chapter 8) ● Speeding Up Product Development (Chapter 9) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●...
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...T BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content for the ACCA qualification. In this, the only Paper P3 Practice and Revision Kit to be reviewed by the examiner We discuss the best strategies for revising and taking your ACCA exams We show you how to be well prepared for your exam We give you lots of great guidance on tackling questions We show you how you can build your own exams We provide you with three mock exams including the December 2012 exam We provide the ACCA examiner's answers as well as our own to the June and December 2012 exams as an additional revision aid FOR EXAMS UP TO JUNE 2014 First edition 2007 Seventh edition January 2013 ISBN 9781 4453 6653 1 (previous ISBN 9781 4453 8002 5) e-ISBN 9781 4453 6956 3 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library All our rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd. Published by BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA www.bpp.com/learningmedia We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The answers to past examination questions have been prepared by BPP Learning Media Ltd. Printed in...
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...the Second Edition of Mergers & Acquisitions from A to Z ‘‘Sherman and Hart have done a terrific job assembling and synthesizing the basic, yet critical, issues to be aware of before/during/ after the deal. A well-rounded, up-to-date primer filled with pragmatic information that will serve as an excellent reference regardless of the reader’s M&A experience.’’ —Edward J. Hayes, Jr. Executive Vice President and Chief Financial Officer Quantum Corporation ‘‘After reading Andrew’s book, it became clear that his insight and processes assist entrepreneurs looking to expand their businesses. Andrew’s book offers guidance for non–U.S.-based businesses considering mergers and acquisitions in the United States.’’ —Nancye Miller, CEO, EO The Entrepreneurs’ Organization ................. 11539$ $$FM 10-19-05 09:48:09 PS PAGE i This page intentionally left blank PAGE ii MERGERS & ACQUISITIONS F ROM A SECOND TO Z EDITION Andrew J. Sherman and Milledge A. Hart American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. ................. 11539$ $$FM 10-19-05 09:48:11 PS PAGE iii Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New...
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...Contents IntroductionDay 1MarketingDay 2Ethics Day 3AccountingDay 4Organizational BehaviorDay 5Quantitative AnalysisDay 6 FinanceDay 7OperationsDay 8Economics Day 9StrategyDay 10MBA Mini-Courses ResearchPublic SpeakingNegotiating International BusinessBusiness LawTenDay MBA DiplomaAppendix: Quantitative Analysis TablesBibliographyMBA Abbreviation LexiconIndex AcknowledgmentsAbout the AuthorPraise for the Ten-Day MBACopyrightAbout the Publisher Introduction After I earned my MBA, I had a chance to reflect on the two most exhausting and fulfilling years of my life. As I reviewed my course notes, I realized that the basics of an MBA education were quite simple and could easily be understood by a wider audience. Thousands of Ten-Day MBA readers have proven it! Readers are applying their MBA knowledge every day to their own business situations. Not only useful in the United States, The Ten-Day MBA has been translated into many languages around the world. So many people are curious about business education, including doctors, lawyers, businesspeople, and aspiring MBAs. This book answers their questions. The Ten-Day MBA really delivers useful information quickly and easily. Current MBA students have written me that they even use the book to review for exams. Ten-Day MBAs are “walking the walk and talking the talk” of MBAs every business day. It’s proven that this book can work for you. Written for the impatient student, The Ten-Day MBA allows readers to really grasp the fundamentals...
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