公司理财ppt-30

McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-0CorporateFinanceRossWesterfieldJaffeSixthEditionSixthEdition30ChapterThirtyMergersandAcquisitionsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-1ChapterOutline30.1TheBasicFormsofAcquisitions30.2TheTaxFormsofAcquisitions30.3AccountingforAcquisitions30.4DeterminingtheSynergyfromanAcquisition30.5SourceofSynergyfromAcquisitions30.6CalculatingtheValueoftheFirmafteranAcquisition30.7ACosttoStockholdersfromReductioninRisk30.8TwoBadReasonsforMergers30.9TheNPVofaMerger30.10DefensiveTactics30.11SomeEvidenceonAcquisitions30.12TheJapaneseKeiretsu30.13SummaryandConclusionsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-230.1TheBasicFormsofAcquisitions•Therearethreebasiclegalproceduresthatonefirmcanusetoacquireanotherfirm:–Merger–AcquisitionofStock–AcquisitionofAssetsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-3VarietiesofTakeoversTakeoversAcquisitionProxyContestGoingPrivate(LBO)MergerAcquisitionofStockAcquisitionofAssetsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-430.2TheTaxFormsofAcquisitions•Ifitisataxableacquisition,sellingshareholdersneedtofiguretheircostbasisandpaytaxesonanycapitalgains.•Ifitisnotataxableevent,shareholdersaredeemedtohaveexchangedtheiroldsharesfornewonesofequivalentvalue.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-530.3AccountingforAcquisitions•ThePurchaseMethod–Thesourceofmuch“goodwill”•PoolingofInterests•Poolingofinterestisgenerallyusedwhentheacquiringfirmissuesvotingstockinexchangeforatleast90percentoftheoutstandingvotingstockoftheacquiredfirm.•Purchaseaccountingisgenerallyusedunderotherfinancingarrangements.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-630.4DeterminingtheSynergyfromanAcquisition•Mostacquisitionsfailtocreatevaluefortheacquirer.•Themainreasonwhytheydonotliesinfailurestointegratetwocompaniesafteramerger.–Intellectualcapitaloftenwalksoutthedoorwhenacquisitionsaren'thandledcarefully.–Traditionally,acquisitionsdelivervaluewhentheyallowforscaleeconomiesormarketpower,betterproductsandservicesinthemarket,orlearningfromthenewfirms.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-730.5SourceofSynergyfromAcquisitions•RevenueEnhancement•CostReduction–Includingreplacingineffectivemanagers.•TaxGains–NetOperatingLosses–UnusedDebtCapacity•TheCostofCapital–EconomiesofScaleinUnderwriting.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-830.6CalculatingtheValueoftheFirmafteranAcquisition•AvoidingMistakes–DonotIgnoreMarketValues–EstimateonlyIncrementalCashFlows–UsetheCorrectDiscountRate–Don’tForgetTransactionsCostsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-930.7ACosttoStockholdersfromReductioninRisk•TheBaseCase–Iftwoall-equityfirmsmerge,thereisnotransferofsynergiestobondholders,butif…•OneFirmhasDebt–Thevalueoftheleveredshareholder’scalloptionfalls.•HowCanShareholdersReducetheirLossesfromtheCoinsuranceEffect?–Retiredebtpre-merger.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-1030.8TwoBadReasonsforMergers•EarningsGrowth–Onlyanaccountingillusion.•Diversification–Shareholderswhowishtodiversifycanaccomplishthisatmuchlowercostwithonephonecalltotheirbrokerthancanmanagementwithatakeover.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-1130.9TheNPVofaMerger•Typically,afirmwoulduseNPVanalysiswhenmakingacquisitions.•Theanalysisisstraightforwardwithacashoffer,butgetscomplicatedwhentheconsiderationisstock.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-12TheNPVofaMerger:CashNPVofmergertoacquirer=Synergy–Premium)(SynergyBAABVVVPremium=PricepaidforB-VBNPVofmergertoacquirer=Synergy-Premium]forpaidPrice[)(BBAABVBVVVBBAABVBVVVforpaidPriceBVVAABforpaidPriceMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-13TheNPVofaMerger:CommonStock•Theanalysisgetsmuddiedupbecauseweneedtoconsiderthepost-mergervalueofthoseshareswe’regivingaway.valuefirmNewpayoutfirmTargetissuedsharesNewsharesOldissuedsharesNewMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-14CashversusCommonStock•Overvaluation–Ifthetargetfirmsharesaretoopriceytobuywithcash,thengowithstock.•Taxes–Cashacquisitionsusuallytriggertaxes.–Stockacquisitionsareusuallytax-free.•SharingGainsfromtheMerger–Withacashtransaction,thetargetfirmshareholdersarenotentitledtoanydownstreamsynergies.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.30-1530.10DefensiveTactics•Target-firmmanagersfrequentlyresisttakeoverattempts.•Itcanstartwithpressreleasesandmailingstoshareholdersthatpresentmanagement’sviewpointandescalatetolegalaction.•Managementresistancemayrepresentthepurs