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SESSION JUL – AUG 2024
PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER III
COURSE CODE & NAME DFIN302 MERGERS AND ACQUISITIONS

Assignment Set – 1

1. What do you understand by the concept of mergers & acquisitions? Discuss the
different types of mergers & acquisitions with suitable example? 2
Ans 1.
Understanding Mergers & Acquisitions
Mergers and acquisitions (M&A) are strategic moves undertaken by companies to achieve
growth, synergy, market expansion, or diversification. A merger occurs when two companies
combine to form a single entity, while an acquisition involves one company purchasing
another to consolidate its position in the market. Both strategies are key components of
corporate restructuring aimed at enhancing efficiency, gaining competitive advantage, and
maximizing shareholder value.
The process of M&A involves financial, legal, and strategic considerations. Companies adopt
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2.Define Synergy. Explain different types of synergy.
Ans 2.
Synergy and Its Types
The term synergy refers to the enhanced value created when two companies combine their
resources, expertise, and operations. The principle of synergy is that the whole is greater than
the sum of its parts, meaning the combined entity is more efficient, productive, and valuable
than the individual entities operating independently.
Types of Synergy
There are several types of synergy, categorized primarily based on the areas of value
3. Discuss in brief Master Limited Partnership. Explain the characteristics and various
types of MLPs.
Ans 3.
Introduction to Master Limited Partnership (MLP)
A Master Limited Partnership (MLP) is a business structure that combines the tax
advantages of a partnership with the liquidity of publicly traded securities. MLPs are
primarily used in industries such as energy, real estate, and natural resources. They allow
companies to raise capital efficiently while providing investors with regular distributions of
income.
An MLP consists of two key entities: the general partner (GP) and the limited partners (LPs).
Assignment Set – 2
4. Summarize the content which should be included in Public Announcement of Offer.
Ans 4.
Introduction to Public Announcement of Offer
A Public Announcement of Offer is a critical document in mergers and acquisitions
(M&A), particularly during takeovers or tender offers. It is a formal declaration issued by the
acquirer, detailing the terms and conditions of the proposed offer to shareholders of the target
company. This document serves as a primary communication tool, ensuring transparency and
5. Discuss the different basis of valuation in detail with suitable example.
Ans 5.
Introduction to Valuation in M&A
Valuation is a cornerstone of mergers and acquisitions (M&A). It involves determining the
worth of a target company to establish a fair offer price. Different methods of valuation are
used depending on the industry, purpose, and circumstances of the transaction. A robust
valuation ensures that the deal is financially sound and aligns with the strategic goals of the
acquirer.
Basis of Valuation in M&A
Several approaches form the foundation of valuation in M&A. These include:
6.Write a short note on challenges present in mergers & acquisitions. Justify your
answer with suitable examples.
Ans 6.
Introduction to M&A Challenges
Mergers and acquisitions (M&A) are intricate processes that aim to create value through
business consolidation. However, despite their potential benefits, M&A deals often face
numerous challenges that can hinder their success. These challenges can arise from cultural
differences, financial miscalculations, regulatory issues, or operational integration