Mergers and Acquisitions: Strategies, Types, and Valuation

MERGERS AND
ACQUISITIONS

EXECUTIVE SUMMARY
The report consist of the mergers and the acquisition which include the strategy, type and
the valuation as well. It includes the offensive and the defensive strategies as well. It also has the
bid which is included in the process of the mergers and the acquisition. The hypothetical merger
and the acquisition is discussed in the report as well.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Mergers and acquisitions.............................................................................................................4
TASK 2............................................................................................................................................7
Hypothetical mergers and acquisitions between the two listed companies ...............................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Mergers and the acquisitions is the process in which the company would acquire the
business and the shareholding of the other company. The merger and the acquisition include the
strategies and the types by which the companies acquire the other companies. The report consist
of the mergers and the acquisition. Mergers and the acquisition consist of the offensive and the
defensive strategies and also valuation techniques and methods are described in the report. The
report consist of the hypothetical merger and the acquisition between the two listed companies as
well. The mergers and the acquisition would include the bid and the process which must be
followed by the company in the mergers and the acquisition process. Aim of these report is to
provide the knowledge to the students about the critical aspects of the mergers and the
acquisition. Two companies focused on in this assignment is AT&T and BellSouth.
TASK 1
Mergers and acquisitions
Mergers and acquisitions is the term used by the companies for consolidation or it can be
said that the companies merge with the other companies including the assets and liabilities,
assets and transactions as well. The companies take over the business of the other company. The
stock of the other company which is merging with the other company looses his identity and
stock of the other company is traded in the market. Acquisition is the acquiring the stake of the
company where the name of the company and the legal structure of the company is not changed
effectively. There are various types of the mergers and the acquisitions.
Consolidation is the process in which the new company is created and the both the
companies are approving the consolidation process. These companies have common equity
shares and also common assets and liabilities as well. The companies prepare financial
statements as the consolidated balance sheets (Feito-Ruiz, Fernández, and Menéndez-Requej
2015).
Tender offer company is giving the offers to purchase the stock the company at the price.
The buyer company is communicating with the share holders of the company and the other board
members of the company as well. In some cases the company does not lose identity while in
some cases the company loses it identity and merge with the other company.
In the process of acquisition of the assets the company is acquiring the assets of the other
company. The company which is selling the assets need to take the approval of the share holders