Introduction to Merger, Acquisition, and Corporate Restructuring

Abstract

This chapter covers the basics of M&A and terminologies related to mergers and acquisition. Various forms of corporate restructuring which includes mergers, acquisitions, reverse mergers, demerger, strategic alliance, franchising, divestiture, etc., are covered with suitable examples. It also talks about the M&A waves and trends in the USA and in India with the number of M&A activities that have taken place in absolute volume and value terms, over the past decade. In the USA, six merger waves have been identified while in India merger activity is divided into three phases. The first phase was pre-liberalization period in which a small number of mergers took place. The second phase has been identified as post-liberalization period from 1991 to 2010. In the post-liberalization phase, the period of 1991–2000 saw only slow growth of M&A while the period from 2000 to 2007 is known as rapid growth phase of M&A which was followed by the global recession in 2008. The ongoing phase of Indian M&A begins from the year 2011.