Organizational development final assignment Merger and Acquisitions

Résumé du document

In this assignment, we will study eight different mergers that will help us understand them in the economic and financial context of the companies that are merging. For each merger, we will have to answer the following questions:
Did historical results justify the deal? Was the merger unavoidable to obtain EPS growth?
Were the bid / merger consistent with the corporate development principles?
Did the bidder or senior merger partner practice top down or bottom up management?
Was the timing right? Do the subsequent results justify the bid/merger? If not, why not?
We will find answers to the questions in this assignment.

Extraits

[...] So, we can say that those two banks have good reasons to merge but they also have similarities. They both had approximately the same EBIT in 1998, but they did not have the same critical size. They did not have the same market, and their merger could create a leader in Europe. Their activities are also different, thus, it could be interesting to merge those two entities in order to diversify and to catch new markets. Furthermore, as we saw, the banking market in the 90's showed high competition and a market under pressure. [...]

[...] Organizational development final assignment Merger and Acquisitions Introduction All along this assignment, we will study 8 different mergers that will help us to understand economic and financial context. For each merger, we will have to answer those questions: Did historical results justify the deal? Was the merger unavoidable to obtain EPS growth? Was the bid / merger consistent with the corporate development principles? Was the management style of the: Bidder or senior merger partner? Top down or bottom up? Was the timing right? [...]

[...] This acquisition is recent, so we can hope that future results would better reflected the success of the marriage of those two leaders Sanofi Aventis merger Sanofi - Synthélabo is a French pharmaceutical company, which resulted from a merger between Sanofi and Synthélabo in 199910. Sanofi Aventis resulted from a merger between Sanofi-Synthélabo and Aventis in 2004. Aventis was formed in 1999 when Rhone-Poulenc merged with Hoechst Marion Roussel. In 2004, Sanofi–Synthélabo made a hostile takeover bid on Aventis. They suggest 47.8 to Aventis, but this one rejected the offer because of the price. [...]

[...] Rossignol is specialized in snow sports and Quiksilver in sea sports. Quicksilver is worldwide known and internationally present. This American historical leader of the outdoor sector possessed an important brand portfolio (13 brands) and important brand awareness in its sector. Quiksilver is established into the clothes markets of extreme sports, especially board sports, and also into golf market but on a second plan. Quicksilver is mostly known into the surf market, which is more represented into the board market. Their turnover is mostly done thanks to the surf market, and all of the products that are linked to. [...]

[...] This bid was determinant for BNP and Paribas in order to be a benchmark group in bank activities. The BNP Paribas' share price, as we can observe on the chart below, constantly grows since 2002, starting from in 2002 to reach in mid-2007, so 3 times more. The merger between BNP and Paribas was obviously a success, regarding to earning profits and earning capacity growing in their results. The earning per share ( BNA in the figure below) shows that forecast are positive and BNP Paribas is one of the sure value of the banking industry The acquisition of Allied Domecq by Pernod Ricard Pernod Ricard is a French company that produces alcoholic beverages, and is worldwide known as a conglomerate. [...]