Provided by
ACCA Research Institute
ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang
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, P4 Chapter 21 Content
1 Mergers and acquisitions
2 The reasons for growth by acquisition or merger
3 Identifying possible acquistion targets
4 Synergy
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, 1.Mergers and acquisitions
Terminology
• “Merger” is usually used to describe the joining together of two
or more entities
• If one entity acquires a majority shareholding in another, the
second is said to have been acquired by the first.
• If the two entities join together to submerge their separate
identities into a new entity, the process is described as a
merger.
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, 1.Mergers and acquisitions
Types of merger/ acquisition
• Horizontal integration
• Vertical integration
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