Merger & Acquisition - A Win-win Situation or a Paradox

Abstract

This quote would definitely now have two schools of thought. With the world witnessing such a variety of mergers and acquisitions, this dissertation is aimed at showcasing different types of mergers and acquisitions, their synergies, and what led to their success or led them into a deeper mess. The chapters would be containing detailed case studies that show how a few factors play a major role in the success or failure of mergers and acquisitions. A merger is defined as the combination of two or more companies into a single company where one survives and the other loses its corporate existence. The survivor acquires the assets as well as liabilities of the merged company or companies. Whereas, Acquisition/ Takeover refers to purchase of majority stake (controlling interest) in the share capital of an existing company by another company. It may be noted that in the case of takeover although there is change in management, both the companies retain their separate legal identity. A merger occurs when two separate entities combine forces to create a new, joint organization. Meanwhile, an acquisition refers to the takeover of one entity by another. Considering the above background, the present study is watchfully carried out to appraise the significance of how a merger and acquisition could either do wonders or lead to the very end of the company. In this report I’ll be covering the Basics of Mergers and Acquisition right from the meaning to the various types of Mergers and Acquisition available in the market. The need for Mergers and Acquisition, the aftermath and the case studies of a variety of Mergers and Acquisition.