Types of Mergers
Type of merger that occurs between firms competing in the same product and geographic market
What is Horizontal Merger?
The initial document used to provide basic financial and operational information to potential buyers
What is Information Memorandum?
The Clayton Act was passed primarily to prevent the following from forming
What is Monopolies?
The major challenge that occurs when two companies' management styles and values do not align
What is Culture Clash?
The grocery chain that Amazon acquired in 2017 for $13.7 billion
What is Whole Foods?
Type of merger that occurs between firms with a supplier-customer relationship
What is Vertical Merger?
The document that outlines transaction terms before formal negotiation and is non-binding
What is Letter of Intent?
What is Substantially Lessen Competition and Creating Monopolies?
The one strategic problem with the combined rail network in the Penn Central merger
The two major oil companies that merged in 1999
What is Exxon and Mobil?
Type of conglomerate merger involving the expansion into a new geographic region
What is Market Extension Merger?
The stage that includes examining legal, financial, employment and antitrust implications
The law requiring companies to notify the DOJ/FTC before completing large mergers
What is Hart-Scott-Rodino Act (HSR)?
The most common risk that delays or blocks M&A deals from being successful
What is Regulatory/Antitrust Risk?
The two factors that must outweigh risks, finances and integration duty for an M&A to work
The type of merger which helps a firm diversify by acquiring a company in a different product market
What is Product Extension Merger?
The valuation method which measures a firm based on future cash flows discounted back to present value
The two types of agreements associated with Section 3 of the Clayton Act
What is Tying Agreements and Exclusive Dealing Agreements?
One reason why Google & Motorola failed to integrate successfully
What is Culture Clash?
What is Overlapping Projects?
What is Continued Financial Losses?
What is Misaligned Goals?
The requirement the FTS imposed before approving the Exxon-Mobil merger
What is Divestitures (Selling Interests in the Trans-Alaska Pipeline and Valdez Terminal)?
The major threat to competition that can occur when a manufacturer acquires a retail outlet in a vertical merger
What is Foreclosing Competitors?
The legal document filed with the Secretary of State that officially dissolves the old business entity in a merger
What is Articles of Merger?
A key case involving exclusive dealing contracts that helped establish how courts assess effects on commerce
What is Standard Oil Co v. United States (1949)?
or
What is Tampa Electric v. Nashville Coal (1961)?
One financial risk for when a company overpays for a target during an acquisition
What is High Acquisition Costs?
At least three of the pros of pursuing an M&A
What is Synergy/Efficiency Gains?
What is Market Expansion?
What is Increase in Market Power?
What is Access to Talent and Technology?
What is Revenue Growth Opportunities?
What is Financial Strength?