Lecture Business finance (9/e) - Chapter 20: Analysis of takeovers

Chapter 20 Analysis of Takeovers Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 20–1 Prepared by Dr Buly Cardak Learning Objectives • Evaluate suggested reasons for takeovers. • Explain how to estimate the gains and costs of takeovers. • Explain the main differences between cash and share-exchange takeovers. • Outline the regulation and tax effects of takeovers in Australia. Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 20–2 Prepared by Dr Buly Cardak Learning Objectives (cont.) • Outline defence strategies that can be used by target companies. • Identify the various types of corporate restructuring transactions. • Outline the main findings of empirical research on the effects of takeovers on shareholders’ wealth. Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 20–3 Prepared by Dr Buly Cardak Fundamental Concepts • Takeovers typically involve one company purchasing another by acquiring a controlling interest in its voting shares. • Also called ‘acquisitions’ and ‘mergers’. • Market for corporate control – A market in which alternative teams of managers compete for the right to control corporate assets. – Such a market enables the quick redeployment of assets in ways expected to bring economic benefits to shareholders. Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 20–4 Prepared by Dr Buly Cardak Importance of Takeovers in Australia • Important because they involve changes in the ownership and/or control of valuable assets. • Table shows Ernst & Young survey results on acquisitions by Australian listed industrial companies with a total market capitalisation of more than $45m. Table 20.1 Number of acquisitions 311 Value of acquisitions ($m) 11 171 453 401 24 887 20 611 320 349 22 414 20 476 Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 20–5 Prepared by Dr Buly Cardak ... - tailieumienphi.vn