Takeovers and mergers

Some cash offers can see an immediate upfront payment, with the rest being deferred and paid months or years after the transaction has been completed.

If they back a deal then they will recommend the offer to shareholders, effectively signing the bid off as the option that gives investors the best value.

mergers acquisition and takeover strategies

The Panel on Takeovers and Mergers is an independent body established in The two will then battle for shareholder votes, arguing whether the company is better off being bought or staying as an independent business. Halliburton did have the same idea but was unsuccessful in its attempts to strike a deal with Baker Hughes.

Then there is an all-share deal, where no cash consideration is involved. Expanding the business organically is still the main method used to grow, but acquiring another a business essentially the same as a takeover can accelerate its efforts. This could be because the target offers a product or service that would enhance its portfolio, or operates in geographical locations that the other firm wants to break into.

Mergers of a certain size and stature attract the attention of numerous authorities which are tasked with overseeing the deals: some to protect competition in the market, some to protect shareholder interests, and those concerned with national interests. An all-cash deal is straightforward: offering a cash sum on a per share basis.

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UK takeovers and mergers: everything you need to know