Sikkim manipal Solved MBA Assignments, SMU MBA, Solved assignments, 1st sem, 2nd sem, 3rd sem, 4th sem, SMU MBA PROJECTS

Email Us

MF0011—Mergers and Acquisitions-4 Credits


Master of Business Administration- MBA Semester 4

MF0011—Mergers and Acquisitions-4 Credits

(Book ID: 1759)

Assignment (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60

Q1. Write the types of mergers and acquisitions. Explain the steps to a successful merger.

Answer. There are five commonly-referred to types of business combinations known as mergers:

1. Conglomerate

A merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed.

2. Horizontal Merger

A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service.


Q2. Explain the process of merger. Write down the goals of a merger.

Answer. Steps in a Merger Process:-

1. Planning, which is the most complex part of the merger process, entails the analysis, the action plan, and the negotiations between the parties involved. More in detail, the planning stage also includes:

  • Signing of the letter of intent which starts off the negotiations;
  • The appointing of advisors who play the role of consultants, examining the strengths, weaknesses, opportunities, and threats of the merger;
  • Expert report on the consistency of the share exchange ratio, for all of the companies involved.


Q3. What is creating synergy? Explain the prerequisites for the creation of synergy.

Answer. Teamwork problems are inevitable because every individual that comprises a team has different ways of doing one thing. A Team Peak performance can be achieved if every team member knows their roles and responsibilities, takes upon them what is their share of the load, works at their best and furthermore collaboratively sees the whole process through to completion. I’d like to share with you the basic fundamentals in creating a positive Synergy:




Q4. Give the meaning of Divesture. List and explain the reasons for divesture.(Meaning of divesture 2marks; Listing of reasons for divesture 3marks; Explanation of reasons for divesture 5marks)10 marks

Answer. For a business, divestiture is the removal of assets from the books. Businesses divest by the selling of ownership stakes, the closure of subsidiaries, the bankruptcy of divisions, and so on. In personal finance, investors selling shares of a business can be said to be divesting their interests in the company being sold.

The partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy. Divestiture can be done slowly and systematically over a long period of time, or in large lots over a short time period.


Q5.Explain the key rules of Employee Stock Ownership Plans. Discuss the two types of ESOPs.

Answer. Key Rules:-

1. Vesting:-

This discussion refers to “vested benefits,” a concept that is unfamiliar to some ESOP participants. Vesting refers to the amount of time an employee must work before acquiring a non-forfeitable entitlement to his or her benefit. Employees who leave the company before being fully vested will forfeit their benefits to the extent they are not vested in them. An ESOP must comply with one of the following two minimum schedules for vesting (plans may provide different standards if they are more generous to participants):


Q6.Explain the following with examples:

Exchange rates, External advantages in different products, Role of government policies.

Answer. Exchange rates

An exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. For example, an interbank exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥91 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥91.

Leave a Reply

You must be logged in to post a comment.