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ACCA P4 AFM Advance Financial Management

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Role and Responsibility of Financial Managers Investment Appraisal Cost of Capital Adjusted Present Value (APV) Financing Decision Dividend Decision International Investment Appraisal International Financing Decision International Dividend Decision Option Pricing Corporate Failure Corporate Reconstruction Corporate Reorganization Risk Management Forwards Contracts Money Market Hedge Future Contract Option Contract Currency Swap Mergers and Acquisitions Business Valuations

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ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com

, P4 Chapter 21 Content



1 Mergers and acquisitions


2 The reasons for growth by acquisition or merger


3 Identifying possible acquistion targets


4 Synergy




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2

, 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.




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3

, 1.Mergers and acquisitions

 Types of merger/ acquisition
• Horizontal integration




• Vertical integration




ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 4

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