GROUP 2

MERGERS AND ACQUISITIONS

I.
Overview of Mergers and Acquisitions (6494_Hong Phc)
1.
Definition of Mergers and Acquisitions
a.
Mergers
b.
Acquisitions
2.
Similarities and differences between Mergers and Acquisitions
a.
Similarities
b.
Differences
Vocabulary list
New words
English meaning
Vietnamese
meaning
Acquisition
A company, piece of land, etc. bought by Sp nhp
somebody, especially another company; the act
of buying it
Autonomous
Able to govern itself or control its own affairs
T tr
Connotation
An idea suggested by a word in addition to its ngha b sung
main meaning
Discretion
The freedom or power to decide what should be Quyn nh ot
done in a particular situation
Interchangeably Can be exchanged
C th trao i
Merger
The act of joining two or more organizations or Hp nht
businesses into one
(cng ty)
Methodology
A set of methods and principles used to perform H thng cc
a particular activity
phng php
Stake
Money that somebody invests in a company
C phn
Rationale
The principles or reasons which explain a L lun
particular decision, course of action, belief, etc.
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II.
Motive of M&A ( 526_Anh Th)
1.
Exploitation (synergy motive)
2.
Exploration
3.
Preservation & Survival
4.
Managers self-interest and prestige
Vocabulary list

New words

English meaning

Vietnamese
meaning

Welfare

The general benefit

Li ch

Perspective

A way of thinking about something

Quan im

Expense of
acquirer
shareholders

Chi ph ca c
The devaluation of the shareholder value
ng cng ty
because of cost paid to the M&A activity
thu tm
An idea, a designthat somebody has created
and that the law prevents other people from Ti sn tr tu
copying
Hp l, chnh
Conforming to the law or to rules
ng

Intellectual
property
Legitimate
Rational
managerial

Logical management of the company

Synergies

The interaction or cooperation of two agents to

S hip lc/Sc
produce a combined effect greater than the sum
mnh tng hp
of their separate effects

Qun l hp l

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III. Classifications of M&A ( 6494_Kim Phng)
1.
Horizontal M&A
2.
Vertical M&A
3.
Conglomerate M&A
Vocabulary list
New words
English meaning
Vietnamese
meaning
Anticompetitive Tending to suppress economic competition
Khng mang tnh
cnh tranh
Complementary
Conglomerate
M&A

Combining in such a way as to enhance or B, b sung

emphasize the qualities of each other or another
Mua li v sp
nhp theo kiu
tp on

Consolidate
Horizontal
M&A

Monopolize

Vertical M&A

Strengthen (ones position or power)

Cng c
Mua li v sp
nhp theo chiu
ngang

Obtain exclusive possession or control of (a Gi c quyn

trade, commodity, or service)
Mua li v sp
nhp theo chiu
dc

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IV. M&A Procedure ( 6250_Hong Tun)
1. General analysis
a. Strategic goals:
+ Enhance synergy
+ Increase market power
+ Avoid saturation stage
b. Target company
+ Make potential acquires list
+ Analyze primary information
+ Evaluate the target
c. Pricing mechanism
2. Letter of intent
3. Management Presentation
4. Closing
a. Pre-closing
b. Closing
c. Post-closing
Vocabulary list
New words
English meaning
Vietnamese
meaning
Collateral
Property that you promise to give to somebody Ti sn th chp
if you cannot pay back money that you borrow
Due diligence
A process of evaluating details before making a Thm tra, thm
business decision
nh

Escrow
agreements

Document issued by a bank to certify that

the securities or other assets listed in it are
on deposit with the bank

Hp ng k qu

Fledgling

New and without experience

Non tr

Peers

Same industry

Cc cng ty cng
ngnh

Saturation

The state or process that happens when no more S bo ha

of something can be accepted or added because
there is already too much of it or too many of
them

Shrinking

To become smaller

Sole entitlement

Thu hp
Quyn duy nht

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V.
Benefits and risks of M&A ( 6188_Ch Thanh)
1.
Benefits:
a. For companies:
+ Economies of scale
+ Brand and resources
+ Diversification
b. For shareholder:
+ Reaping higher shareholder value than the sum of the wealth of the companies involved
before the merger
+ Substantial benefits for shareholders of the acquired company.
2.
Risks:
a. For companies:
+ Legal surprises
+ Return on Investment
+ Diseconomies of scale
+ Corporate integration
b. For shareholder:
+ Benefits are not clear for the buyers shareholder.
+ Shareholders can be "screwed over" by management of M&A.
Vocabulary list

New words

English meaning

Vietnamese
meaning

Amalgamate

Combine or unite to form one organization or

Hp nht
structure

Eventual

Occurring or existing at the end of or as a result

Cui cng
of a process or period of time

Integration
Inverse
Tangible
Tough times
Weather

Combination (one thing) with another to form a

Hi nhp
whole
Opposite or contrary in position, direction,
T l nghch
order, or effect
Clear and definite; reality.

Hu hnh

Strong enough to withstand adverse conditions Thi im kh

or rough handling
khn
Wear away or change the appearance or texture
of (something) by long exposure to the Thay i
atmosphere.

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VI. How to have a successful M&A case? ( 6213_Lam Thy)
1.
Things to do
2.
Things not to do
Vocabulary list
New words
English meaning
Vietnamese
meaning
Buy-in
To agree with; to accept an idea as worthwhile
Li cam kt hon
thnh mc tiu
chung
Halfway-house Something that combines the features of two S tha hip
very different things
Intention
Aim
Mc ch
Preoccupied

Absorbed in thought

Bn tm

Transparent

Allowing you to see through it

Minh bch

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VII. Mergers and Acquisitions Trends ( 6555 _ Thy Vn)

1.
The global M&A picture
a.
General trends
b.
Sectors
2.
Vietnam M&A trends
a.
General trends
b.
Sectors
Vocabulary list
New words
English meaning
Bailout
Cash hoard

Vietnamese
meaning
An act of giving financial assistance to a failing S cu tr ti
business or economy to save it from collapse
chnh
Cash reserve
Tin mt d tr

Emerging
market
Know-how

New and developing market

Practical knowledge or skill; expertise

Th trng mi
ni
B quyt

Meager

Lacking in quantity/ quality

t i

Sought-after

Much in demand; generally desired

C nhu cu rt
ln

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VIII. M&A Case study ( 6556 _ Thanh Vn)
1.
Company Overview
2.
M&A and the reasons
3.
Results after M&A
Vocabulary list
New words
English meaning

Vietnamese
meaning

Fiasco

A complete failure

S thm bi, tht

bi hon ton

Oatmeal

A cooked breakfast food made from oats

Cho yn mch

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