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International Finance: Core Concepts
Introduction to Mergers and Acquisitions (M&A)
An overview of M&A, covering definitions, strategic motivations (synergy, growth), the process flow, types of mergers, and key concepts like due diligence and valuation. ✨
Article Points:
1
M&A refers to the consolidation of companies; merger combines to form new, acquisition is one buying another.
2
Primary motivations include achieving synergy (combined value > sum of parts), accelerating growth, acquiring technology/talent, and eliminating competition.
3
The M&A process involves strategy, target identification, valuation/due diligence, negotiation, closing, and post-merger integration (PMI).
4
Types of mergers: Horizontal (competitors), Vertical (supply chain), Conglomerate (unrelated businesses).
5
Key concepts: Synergy (often overestimated), Due Diligence (critical investigation), Valuation (determining fair value), and PMI (most challenging part).
6
Many deals fail due to poor PMI or overestimation of synergies.
Source:
Introduction to Mergers and Acquisitions (M&A)
Introduction to Mergers and Acquisitions (M&A)
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Source:
Introduction to Mergers and Acquisitions (M&A)
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