Description

The Introduction provides the foundation for understanding takeovers, mergers, corporate restructuring, and corporate governance. The book examines these topics as important strategic and financial decisions faced by companies.

1. What are mergers and acquisitions?

A merger occurs when two companies combine their operations, while an acquisition/takeover occurs when one company obtains control of another.

Companies may pursue these transactions to:

• Increase market share
• Enter new markets
• Obtain technology or resources
• Achieve economies of scale
• Improve efficiency
• Create shareholder value