Management and Organizational Studies 1023A/B Chapter Notes - Chapter 8: Vertical Integration, Managerial Finance, Net Present Value

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

Document Summary

Chapters mergers and acquisitions and international financial management. Takeover the transfer of control from one ownership group to another. Acquisition the purchase of one firm by another. Merger the combination of two firms into a new legal entity: amalgamation a genuine merger in which both sets of shareholders must approve the transaction. Note: two-thirds of the shareholders of both amalgamating firms have to approve the resolution. Share transaction the acquiring company offers shares or cash & shares to the target company"s shareholders: note: the shareholders of the acquiring company have to give their approval. Vertical merger a merger in which one firm acquires a supplier or another firm that is closer to its existing customers. Vertical integration extends a firm"s competitive scope within same industry: backward into sources of supply (production, forward toward end-users of final product (customers) Can aim at either full or partial integration. Conglomerate merger a merger in which two firms in unrelated businesses combine.