Merger and Acquisition in Corporate Finance

Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student
Name of the University
Authors Note

CORPORATE FINANCE
1
Executive summary
The study topic deals with the effective changes related to the merger and acquisitions
technique in different contexts related to the process along with a suitable conclusion at the
end.

CORPORATE FINANCE
2
Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................3
Industry anticipation over the merger and acquisition...............................................3
Mode of payments in merger and acquisitions..........................................................5
Choice of exchange medium of merger and acquisitions..........................................5
Corporate control and the investment financing........................................................5
Acquiring the firm characteristics and the exchange process....................................6
Payment forms related to the preferencial tax treatment...........................................7
Wealth effects of corporate control activities............................................................7
Corporate control contest...........................................................................................8
Higher takeover premiums paid in cash transactions than in stock transactions.......9
Other security holders fare in takeovers.....................................................................9
Structuring the stakeholder of the CEO for any targeting firm................................10
Impact on the bondholders.......................................................................................10
Conclusion....................................................................................................................11
References....................................................................................................................12

CORPORATE FINANCE
3
Introduction
The study topic discusses with the merger and acquisition concept related to the
industry viewpoint. The report also analyses the payment mood of the company stakeholders
of the target firm who will be responsible for the merger or acquisition of the surviving firm
as a whole. On the other hand the wealth effects of the corporate control activities related to
the process of stockholder as well as the preferencial stakeholders. Lastly the subject topic
have also shared their views related to the aspect of the impact of the company stakeholders
at the time of acquisition or the post-merger effect of the targeted firm along with a suitable
conclusion at the end.
Discussion
Industry anticipation over the merger and acquisition
The merger and acquisition concept over the same industry will be in need of
absorbing resources to meet the essential requirements of the competitive advantage and the
firm probability. Hence the probability of the occurrence of the process related the merger
and acquisition between the firms related to the same industry can effectively change the
process of the business environment for the surviving firms of the market. For example the
increase in the market consideration and the general rent expectation value is considered to be
effective for the company. Hence the customers of the targeted firms due to the reduced
number of competitors may look to experience a whole new level of market supplier related
to the process and thus to provide an impactful opportunity for the targeted firms. Thus the
process will be looking to affect the industry commonality and the process of takeover effect
of the operation of different industries suggest that those firms are normally related to the
poor industry performance. Hence this is the only reason why the big companies are going
towards either merger or acquisition in order to expand the business are to increase the