Management and Organizational Studies 1023A/B Lecture Notes - Lecture 8: Vertical Integration, Net Present Value, Country Risk

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Acquisition: the purchase of one firm by another, takeover. Merger: the combination of two firms into a new legal entity, two equal size companies. Amalgamation (merger: a genuine merger in which both sets of shareholders must, canadian term approve the transaction. Combining the related activities of separate businesses into a single operation to lower costs. Exploiting common use of a well-known brand name. Favorable reputation: vertical integration extends a firm"s competitive scope within the same industry. Forward toward end-user"s final product: can aim at either full or partial integration, activities, costs, and margins of suppliers . Activities, costs, and margins of forward channel. Allies and strategic partners : buyer/user of delivering excellent financial performance, favors capitalizing on a portfolio of businesses that are capable, entails hinting to acquire companies. Buy cheap and sell for more later. With high growth potential but are short on investment capital. Motivations for mergers and acquisitions: creation of synergy motive for m&as.