Lecture Fundamentals of corporate finance - Chapter 23: Mergers and acquisitions
Lecture Fundamentals of corporate finance - Chapter 23: Mergers and acquisitions
This chapter describes the corporate finance of mergers and acquisitions. It shows that the acquisition of one firm by another is essentially a capital budgeting decision, and the NPV framework still applies. Tax, legal, and accounting aspects of mergers are discussed along with more recent developments in areas such as takeover defenses.