1. Definition & Classification
   1. Definition
      1. Acquisition
      2. Merge
   2. Classification
      1. Forms of Integration
         1. Statutory
         2. Subsidairy
         3. Consolidation
      2. Types of Mergers
         1. Horizontal
         2. Vertical
         3. Conglomerate
2. Motives
   1. Synergy
      1. Reducing cost - pure horizontal merger
      2. Increasing Revenue
         1. Cross-selling products
         2. increasing market share
         3. raising price - due to less competition
   2. Growth
   3. Increasing Market Power
      1. Vertical - control key input
         1. price influence
         2. output control
   4. Unique Capabilities and Resources
   5. Diversification
   6. Bootstrapping Earning
      1. Higher P/E trade for Low P/E, 1:x (x>1) higher EPS for acquirer
   7. Manager's Personal Incentives
   8. Tax Considerations
   9. Unlocking Hidden Value
   10. Cross-Border Motivations
       1. take advantage of market inefficiency
       2. Working around disadvantage government policy
       3. Use technology in new markets
       4. Products differenciation
       5. Support existing MNC
3. Transaction Characteristics
   1. Form of acquisition
      1. Stock purchase
         1. Shareholder receive compensation,NOT company
         2. Shareholder pay capital gain TAX, not corporate
         3. Entire company, including liability
      2. Asset purchase
         1. more than 50% need shareholder's approval
         2. Corporate level capital gain tax
         3. No liabilities assumed
   2. Method of Payment
      1. Securities Offering
      2. Cash Offering
   3. Mind-Set of Target Management
      1. Friendly
         1. Due dilligence on FS
         2. definitive merger agreement signed
         3. endorsement from mgt & Board of Directors
         4. proxy statement by the target
      2. Hostile
         1. bear hug
            1. tender offer
            2. proxy battle
4. Takeovers
   1. Defense mechanism
      1. Pre-offer
         1. Poison Pill
            1. flip-in
            2. flip-out
         2. Poison Put
         3. Reincorporate in a juristiction with strict anti-takeover law
         4. Staggered board: at least 2 year for proxy battle
         5. Restricted voting rights
         6. Supermajority voting provision
         7. Fair-price amendment
         8. Golden Parachutes
      2. Post-offer
5. Regulation
   1. Anti-trust
      1. U.S
         1. 1980: The Sherman Antitrust Act
         2. 1914: The Clayton Antitrust Act
            1. Details of illegal business practice
            2. Federal Trade Commission
         3. 1950: The Celler-Kefauver Act
            1. Address asset purchase
            2. vertical & conglomerate mergers
         4. 1976: The Hart-Scott-Rodino
            1. All potential mergers to be apporved of FTC & Dpt of Justice
      2. E.U.
         1. European Commission
   2. Security Law
6. Merge Analysis
   1. Target Company Valuation
      1. Discounted Cash Flow
      2. Comparable Company
      3. Comparable Transaction
   2. Bid Evaluation
7. Distribution of Benefits
8. Corporate Restructuring
   1. divestitures
   2. equity carve-outs
   3. spin-offs
   4. split-offs
   5. liquidation