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Introduction to Risk Management of Mergers and Acquisitions . . . . Some Facts:Between 51 and 89% of all mergers failSeveral RisksEasier, Anti-Trust Laws Much Less Strict. . Risk management in mergers and acquisitions.Mergers and acquisitions with insurance companies. Several Other Topic Areas .
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1. By
Ryan T. Evans
November 2001
Dr. Gasper
3. Risk management in mergers and acquisitions.
Mergers and acquisitions with insurance companies.
Several Other Topic Areas
4. Risk Management with M&A Before The Merger
During The Merger
After The Merger
5. Risk Management Teams Before(What do we hope the M or A will Accomplish?) Assets – More Money to Manage
Liabilities – More Debt to Deal With
Laws/Accounting Principles – How to Document the Money
Dealing With Rumors
IS IT WORTH IT?
6. Risk Management Teams During The Value of the Company’s Stock
Insider Trading
Keeping the Company Moving Smoothly
A Smooth Transition
7. Management Changes – Political
Change in 401K
Keeping Customers
8. What to Consider Single Industry – What will this do to competition(Formica and Intl Paper).
Cross-Industry – Will This be feasible (General Electric)
International – What are the Legalities
9. Single Industry Reducing competition is the Main Issue.
Is the Industry large Enough to Sustain a Merger or Acquisition
What Exactly Will Be Gained
CASH MANAGEMENT
10. Cross-Industry
Different Types of Competition
Management, Management, Management
Must Prepare for the Merger
11. International M&A Different Regulations
Competition
Knowledge
Exchange Rates
12. EXAMPLES Paper Industry
Quaker Oats/Pepsi
AOL-Time-Warner
13. M&A involving Insurance Companies The Logistics
The Primary Company
The Target Company
The New company
14. EXAMPLES SUCCESS
FAILURES
DO NOT HAVE TO GO FAR
15. M&A Involving Insurance Companies
REINSURANCE
16. Conclusion Mergers and Acquisitions Seem to be the Future of Corporate America