UNIT 12
A. What do you understand by these terms?
1. a takeover/acquisition
An acquisition is when one company buys another to gain control. It can involve purchasing
shares, assets, or the entire business to expand operations, enter new markets, or gain a
competitive edge
(Mua lại là khi một công ty mua một công ty khác để giành quyền kiểm soát. Nó có thể bao gồm việc mua cổ phiếu, tài sản hoặc
toàn bộ doanh nghiệp để mở rộng hoạt động, thâm nhập thị trường mới hoặc giành được lợi thế cạnh tranh)
2. A merger
A merger involves two companies or organisations coming together to form a larger one
(Một vụ sáp nhập liên quan đến việc hai công ty hoặc tổ chức hợp lại với nhau để thành lập một công ty hoặc tổ
chức lớn hơn)
3. A joint venture
A joint venture involves two quite separate companies co-operating for a limited time, or in
a particular project
(Một liên doanh bao gồm hai công ty hoàn toàn riêng biệt hợp tác trong một thời gian giới hạn, hoặc trong một
dự án cụ thể)
B. Fff
C. Think of three reasons why one company might wish to take over another company.
First reason:
Expand Market Share and Growth – Acquire a tool to help expand the market, increase
revenue and strengthen market position
(Mở rộng thị phần và tăng trưởng – Mua lại một công ty đối thủ giúp mở rộng thị phần, tăng doanh thu và củng
cố vị thế trên thị trường)
Second reason:
Eliminate competitors – A company can acquire a competitor to reduce competitive
pressure, increase market share, and control prices in the industry.
(Loại bỏ đối thủ cạnh tranh – Một công ty có thể mua lại đối thủ để giảm áp lực cạnh tranh, tăng thị phần và kiểm
soát giá cả trong ngành.)
Third reason:
Increase profits and shareholder value – If the target company is undervalued compared to
its true potential, the acquiring company can take advantage of the opportunity to increase
asset value and profits.
(Tăng lợi nhuận và giá trị cổ đông – Nếu công ty mục tiêu đang bị định giá thấp hơn tiềm năng thực sự, công ty
mua lại có thể tận dụng cơ hội để tăng giá trị tài sản và lợi nhuận.)
D. What do you think the advantages and disadvantages of acquisitions maybe for a
company's:
Employees:
Ad: Employees may gain access to new roles, career paths, and professional development
opportunities within the larger organization.
DisAd: Uncertainty & Stress – Employees may feel anxious about changes in job roles,
company culture, or management style.
Customers:
Ad: Expanded Offerings – Customers might gain access to a wider range of products or
services from the merged company.
DisAd: Loss of Familiarity – If the acquired company had a unique brand, product, or
customer experience, loyal customers might feel disconnected or dissatisfied with changes.
Suppliers:
Each company involved in the merger or acquisition may have had different suppliers, so
some suppliers may be worried that they will be eliminated. Those that remain, however,
can expect more work from the bigger business
Shareholders:
Acquisitions can benefit shareholders by increasing stock value, boosting dividends, and
expanding market presence. However, they also pose risks such as stock volatility, high
costs, and potential integration failures.
Products & services:
Acquisitions can improve products and services by enhancing quality, expanding offerings,
and integrating new technologies. However, there is also a risk of price increases, reduced
uniqueness, or service disruptions if the transition is not well managed.
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Exercise A
1e 2d 3b 4f 5c 6a
Exercise B
1. a stake
(to invest or acquire an ownership interest, usually in a company or business)
2. a bid
(means to offer a specific amount of money in order to purchase something, typically in an
auction or a business transaction)
3. a bid
(start the process of offering a price to purchase something, usually a company, asset, or project)
4. a company
(focus on or aim at acquiring, investing in, or competing with a specific company)
5. a joint venture
(create a new business entity formed by two or more companies that agree to collaborate and
share resources, risks, and profits)
6. an acquisition
( to purchase or gain control of another company or its assets)
7. a bid
( refuse an offer made by someone, typically in the context of a business transaction or
acquisition)
8. a stake
(sell an ownership interest or share in a company or investment)
Exercise C
1 merger
2 joint venture; acquisition
3 takeover bid
4 stake
114/
A. Listen to Professor Scott Moeller, Director of the Mergers & Acquisitions Research
Centre at Cass Business School. What three reasons does Scott give for the lack of success
of some mergers and acquisitions?
1. inadequate planning
(the lack of thorough preparation, strategy, or foresight in a project or process)
2. due diligence done too quickly
(to rushing the process of thoroughly investigating and evaluating a company or asset before
making a business decision, such as an acquisition or investment)
3. lack of planning for post-merger integration period
(the failure to adequately prepare for the challenges and processes)
B. Listen to the second part of the interview and answer these questions.
1a) To understand the company better or if you want it to operate as a separate subsidiary
1b) So as not to lose customers or employees, or if there is a time-critical element
2) Whether you want to impose your own culture and way of operations on that company, or
keep that company's own culture separate
3) Are you going to appoint somebody from the company itself to run that division, or do you
want to bring in new management, either from the acquirer's own management, or from the
outside?
C. Listen to the final part and take notes on why the merger between Bank of New York
and Mellon Bank was eventually successful.
- made sure the approach was friendly
- put together a team of senior people from both sides
- identified who was going to be running the firm
- CEO and Chairman deeply engaged in deal strategy
D. How would you go about making sure that the staff of a company that you have just
acquired feel valued and welcomed?
Transparent & Open Communication
- Clearly announce the acquisition, explaining its purpose and impact on employees.
- Address concerns early through Q&A sessions or meetings to reassure staff about job
security and future plans.
- Provide a transition roadmap to keep employees informed about upcoming changes and
timelines.
