MF0011 & MERGERS AND ACQUISITIONS

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DRIVE Fall 2014

PROGRAM/SEMESTER MBADS (SEM 3/SEM 5)

MBAFLEX/ MBAN2 (SEM 3)

PGDFMN (SEM 1)

SUBJECT CODE &

NAME

MF0011 & MERGERS AND ACQUISITIONS

Q1. Explain the five stage model of mergers and acquisitions.

Answer:

The Five Stage Model

To examine the issues that possibly contribute to acquisition failure and value destruction, the author, Sudi Sudarsanam, develops a five stage model of mergers and acquisitions, which advocates a view of M&A as a process rather than a transaction. The five stages comprise:

·         Corporate strategy

·         Organizing for acquisitions

·         Deal structuring and negotiations

·         Post-acquisition integration; and

·         Post-acquisition audit and organizational learning.

Stage 1: Corporate strategy development

Q2. What do you understand by demerger? Write about the tax implications of demergers.

Explain the characteristics of demerger.

(Meaning of demerger, Tax implications of demergers, Characteristics of demerger.)

Answer:

Meaning of Demerger

Large entities sometimes hinder entrepreneurial initiative, sideline core activities, reduce accountability and promote investment in non-core activities. There is an increasing realization among companies that demerger may allow them to strengthen their core competence and realize the true value of their business.

Q3. Explain about Employee Stock Ownership Plans (ESOP). Write down about the rules

of ESOP and types of ESOPS.

(Explanation of ESOP, Rules of ESOP,Types of ESOP)

Answer:

Employee Stock Ownership Plans(ESOP)

Employee-owned corporations are corporations owned in whole or in part by their employees. Employees are usually given a share of the corporation after a certain length of employment or they can buy shares at any time. Corporation owned entirely by its employees (a worker cooperative) will not, the reform, have

Q4.Write Short notes on:

·         Exchange rates

·         External advantages in differential products

·         Political and economic stability

(Exchange rates, External advantages in differential products., Political and economic stability)

Answer.

Exchange rates- In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate ) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥91 will be

Q5. Give the meaning of buyback of shares. Explain the objectives and guidelines for buyback of shares.

·         Meaning of buyback of shares

·         Objectives of buy back of shares

·         Guidelines for buyback of shares

(Meaning of buyback of shares, Objectives of buy back of shares, Guidelines for buyback of shares)

Answer:

Meaning of buyback of shares

The buyback of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing

Q6. Explain the methods of accounting of amalgamation with example.

·         Pooling of interests method

·         Purchase method

·         Lump sum method

·         Net asset method

·         Net payment method

·         Intrinsic method

 (Pooling of interests method, Purchase method, Lump sum method, Net asset method

Net payment method, Intrinsic method)

Answer:

Pooling of interests method

Pooling of interests refers to uniting of interest. Two companies operating in  the same line of business may come together to achieve greater market share. Independently these two companies may be smaller but when they unite, they may become the big company capable of becomin

Dear students get fully solved  SMU MBA Fall 2014 assignments

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or

Call us at : 08263069601

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