Management and Organizational Studies 1023A/B Lecture Notes - Lecture 8: Dasani, Managerial Finance, Cash Flow

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Acquisition: the purchase of one firm by another. Merger: the combination of two or more firms into a new legal entity in which one entity keeps their identity while the others lose their identities. Amalgamation: a blending together of two or more entities where both lose their identities and a new separate entity is born. Both (all) sets of shareholders must approve the transaction. Dasani water sales exploding when coke bought dasani) Operating synergies: economies of scale, synergies to reduce cost, expenses. Reducing manufacturing costs but increasing output: economies of scope, synergies to reduce cost, expenses. Combining companies that make similar products scope: increasing scope of products supplied: complementary strengths, ex. One company is good at manufacturing and not at sales, another company is good at sales but not at manufacturing, but when combined it"s the best of both worlds.