Objectives

1. After reading this chapter, students should be able to:

2.  Define the term merger, and list some motives for mergers.

3.  Characterize the different types of mergers.

4. Differentiate between the merger process in hostile versus friendly takeovers.

5. Determine the value of a target firm using discounted cash flow analysis and the appropriate discount rate.

6. Explain the steps for an analysis of a true “merger of equals.”

7. Discuss the roles investment bankers play in merger transactions.

 Specific Topics:

• Rationale for Mergers

• Types of Mergers

• Hostile vs Friendly Takeovers

• Merger Analysis

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