Management and Organizational Studies 1023A/B Chapter Notes - Chapter 7: Managerial Finance, Vertical Integration, Cash Flow

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

Document Summary

Exploiting common use of a well-known brand name vertical integration strategies: Entails hunting to acquire companies: whose assets are undervalued, that are financially distressed, with high growth potential but are short on investment capital motivations for mergers and acquisitions: creation of synergy motive for m&as. Private companies are generally exempt from provincial securities legislation. Public companies that have few shareholders in one province may be subject to takeover laws of another province where the majority of shareholders reside. 10%: early warning: when a shareholder hits this point a report is sent to osc, this requirement alters other shareholders that a potential acquisitor is accumulating a position (toehold) in the firm. 50. 1%: control: shareholder controls voting decisions under normal voting (simple majority, can replace board and control management. 66. 7%: amalgamation: can approve amalgamation proposals requiring a 2/3s majority vote (supermajority) International finance management globalization of the world economy: