Mergers and Acquisitions

Paper Summary:

The paper defines mergers and acquisitions and relates that the most significant business transaction of the year 2005 was the merging of Procter & Gamble with Gillette. The paper identifies the rationale and objectives behind the merger with Gillette. The paper looks at the key players and the role of investment bankers in the transaction. The paper notes the success of this merger and reveals that it made Procter & Gamble the largest consumer products provider in the world.

Outline:
Executive Summary
The Rationale of the Merger
The Key Players
The Role of Investment Bankers in the Transaction
Success of the Procter&Gamble - Gillette M&A

From the Paper:

"The actual meaning of the terms merger and acquisition have long been disputed and analyzed and generally all definitions are basically the same, but otherwise said. In this order of ideas, the definition given by Amos Web Dictionary is one that best captures the essence of most definitions. According to them, a merger represents the "consolidation of two separately-owned businesses under single ownership" and it can be done in three ways: horizontal, when the two companies have similar industrial positions (items produced, net revenues); vertical, when the companies produce the same products, but in different stages; and conglomerate, when the companies belong to different industrial sectors. The term acquisition refers to the act of actually buying another company in order to benefit of the advantages of the bought company and form a stronger firm."

Sample of Sources Used:

• Amos Web Dictionary, Gloss arama, Merger, http://www.amosweb.com/cgi-bin/awb_nav.pl?s=gls&c=dsp&k=merger, last accessed on February 28, 2007
• Wikipedia, The Free Online Encyclopedia, Mergers and acquisitions, Due Diligence, Procter&Gamble, http://en.wikipedia.org/, last accessed on February 28, 2007
• CNN Money, Results of Weekly Pole, 2005, Chris Isidore, P&G to buy Gillette for $57B, CNN Money, January 28, 2005, http://money.cnn.com, last accessed on February 28, 2007
• Procter&Gamble buys Gillette to Form the World's Biggest Consumer Products Group, FinFacts Ireland, Business&Finance Portal, January 29, 2005http://www.finfacts.com/cgi-bin/irelandbusinessnews/exec/view.cgi?archive=2&num=292, last accessed on February 28, 2007
• Christine Spivey Overby, George Lawrie, Procter&Gamble buys Gillette, Forrester Research, January 28, 2005, http://www.forrester.com/Research/Document/Excerpt/0,7211,36326,00.html, last accessed on February 28, 2007

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