Mergers and Acquisitions Basics

Negotiations form the heart of mergers and acquisitions efforts, for their conclusions contain both anticipated and unforeseen implications. Don DePamphilis presents a summary of negotiating and deal structuring that captures its dynamic process, showing readers how brokers, bankers, accountants, attorneys, tax experts, managers, investors, and others must work together and what happens when they don't. Writtten for those who seek a broadly-based view of M&A and understand their own roles in the process, this book treads a middle ground between highly technical and dumbed-down descriptions of complex events. It mixes theory with case studies so the text is current and useful. Unique and practical, this book can add hard-won insights to anybody's list of M&A titles. .

- Presents negotiation as a team effort

- Includes all participants, from investment bankers to accountants and business managers

- Emphasizes the interactive natures of decisions about assets, payments, and appropriate legal structures

- Written for those who seek summarizing, non-technical information

1;Front Cover;1 2;Mergers and Acquisitions Basics;2 3;Copyright Page;3 4;Table of Contents;4 5;Preface;10 6;Acknowledgments;14 7;Chapter 1. Introduction to Negotiating Mergers and Acquisitions;16 7.1;Key Participants in Negotiating Mergers and Acquisitions;17 7.2;Prenegotiation: Profiling the Target Market and Firm;20 7.3;Prenegotiation: First Contact;28 7.4;Negotiation;30 7.5;A Case in Point: Pfizer Acquires Wyeth in an Attempt to Kick-Start Growth;43 8;Chapter 2. Selecting the Form of Acquisition Vehicle and Postclosing Organization;46 8.1;Alternative Acquisition Vehicle and Postclosing Organizational Structures;48 8.2;Choosing the Appropriate Acquisition Vehicle;62 8.3;Choosing the Appropriate Postclosing Organization;64 8.4;A Case in Point: Vivendi Universal and GE Combine Entertainment Assets to Form NBC Universal;67 9;Chapter 3. Selecting the Form of Payment;70 9.1;Form of Payment or Total Consideration;70 9.2;Managing Risk and Closing the Gap on Price;74 9.3;Using Collar Arrangements to Preserve Shareholder Value;81 9.4;Calculating Share Exchange Ratios;87 9.5;A Case in Point: Boston Scientific Overcomes Johnson & Johnson to Acquire Guidant: A Lesson in Bidding Strategies;88 10;Chapter 4. Selecting the Form of Acquisition;92 10.1;Form of Acquisition;92 10.2;Acquisition Agreements;108 10.3;A Case in Point: Teva Pharmaceuticals Buys Barr Pharmaceuticals to Create a Global Generic Drugs Powerhouse;110 11;Chapter 5. Tax Structures and Strategies;114 11.1;Taxable Transactions;115 11.2;Tax-Free Transactions;119 11.3;Other Tax Considerations Affecting Corporate Restructuring Activities;132 11.4;Legal Form of Selling Entity;138 11.5;A Case in Point: "Grave Dancer" Takes Tribune Company Private in an Ill-Fated Transaction;139 12;Chapter 6. Accounting Considerations;144 12.1;Limitations of Financial Data;145 12.2;Financial Reporting of Business Combinations;146 12.3;Impact of Purchase Accounting on Financial Statements;152 12.4;International Accounting Standards;159 12
.5;Recapitalization Accounting;159 12.6;A Case in Point: JDS Uniphase-SDL Merger Results in Huge Write-off;160 13;Chapter 7. Financing Structures and Strategies;164 13.1;Why Financing Structures Matter;165 13.2;Financing Strategies: Borrowing;166 13.3;Financing Strategies: Equity and Hybrid Securities;173 13.4;Financing Strategies: Seller Financing;174 13.5;Financing Strategies: Selling Discretionary Assets;176 13.6;Highly Leveraged Transactions;178 13.7;Common Forms of Leveraged Buyout Deal Structures;181 13.8;Estimating the Impact of Alternative Financing Structures;184 13.9;A Case in Point: Financing LBOsThe SunGard Transaction;188 14;Chapter 8. The Role of Takeover Tactics and Defenses in the Negotiation Process;192 14.1;Alternative Takeover Tactics in the Corporate Takeover Market;193 14.2;Developing a Bidding or Takeover Strategy;200 14.3;Alternative Takeover Defenses in the Corporate Takeover MarketPre-offer and Post-offer Defenses;203 14.4;A Case in Point: Mittal Acquires Arcelor in a Battle of Global Titans;216 15;Glossary;220 15.1;A;220 15.2;B;220 15.3;C;220 15.4;D;221 15.5;E;221 15.6;F;222 15.7;G;222 15.8;H;223 15.9;I;223 15.10;J;223 15.11;L;223 15.12;M;223 15.13;N;223 15.14;O;224 15.15;P;224 15.16;R;224 15.17;S;225 15.18;T;225 15.19;V;226 15.20;W;226 16;References;228 17;Index;232 17.1;A;232 17.2;B;232 17.3;C;233 17.4;D;233 17.5;E;234 17.6;F;234 17.7;G;235 17.8;H;235 17.9;I;235 17.10;J;236 17.11;K;236 17.12;L;236 17.13;M;236 17.14;N;237 17.15;O;237 17.16;P;237 17.17;R;238 17.18;S;238 17.19;T;239 17.20;U;240 17.21;V;240 17.22;W;240 17.23;Y;240