[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:01.41,Default,,0000,0000,0000,,PROFESSOR: Hello, everyone.
Dialogue: 0,0:00:01.41,0:00:03.66,Default,,0000,0000,0000,,Welcome to Business School 101.
Dialogue: 0,0:00:03.66,0:00:06.35,Default,,0000,0000,0000,,Big firms often use\Nmergers and acquisitions
Dialogue: 0,0:00:06.35,0:00:08.00,Default,,0000,0000,0000,,to better expand\Ntheir businesses
Dialogue: 0,0:00:08.00,0:00:09.90,Default,,0000,0000,0000,,and compete with\Ntheir competitors.
Dialogue: 0,0:00:09.90,0:00:14.01,Default,,0000,0000,0000,,For example, T-Mobile and Sprint\Ncompleted their merger in 2020,
Dialogue: 0,0:00:14.01,0:00:17.45,Default,,0000,0000,0000,,creating a new wireless carrier\Nwith a customer base of over 100
Dialogue: 0,0:00:17.45,0:00:18.96,Default,,0000,0000,0000,,million subscribers.
Dialogue: 0,0:00:18.96,0:00:23.03,Default,,0000,0000,0000,,In 2014, Italian automaker\NFiat completed its acquisition
Dialogue: 0,0:00:23.03,0:00:26.12,Default,,0000,0000,0000,,of American automaker Chrysler,\Ncreating Fiat Chrysler
Dialogue: 0,0:00:26.12,0:00:29.70,Default,,0000,0000,0000,,Automobiles, the world's seventh\Nlargest automaker at the time.
Dialogue: 0,0:00:29.70,0:00:32.48,Default,,0000,0000,0000,,Amazon acquired\NWhole Foods in 2017
Dialogue: 0,0:00:32.48,0:00:34.58,Default,,0000,0000,0000,,to gain access to\NWhole Foods' customer
Dialogue: 0,0:00:34.58,0:00:36.24,Default,,0000,0000,0000,,base and physical stores.
Dialogue: 0,0:00:36.24,0:00:39.77,Default,,0000,0000,0000,,Google acquired YouTube in\N2006 to expand its reach
Dialogue: 0,0:00:39.77,0:00:42.38,Default,,0000,0000,0000,,in the online video\Nmarket and gain access
Dialogue: 0,0:00:42.38,0:00:45.51,Default,,0000,0000,0000,,to YouTube's large user\Nbase and content library.
Dialogue: 0,0:00:45.51,0:00:47.76,Default,,0000,0000,0000,,So what are mergers\Nand acquisitions?
Dialogue: 0,0:00:47.76,0:00:49.32,Default,,0000,0000,0000,,Why do firms do that?
Dialogue: 0,0:00:49.32,0:00:52.28,Default,,0000,0000,0000,,Are there some successful and\Nfailed real business examples
Dialogue: 0,0:00:52.28,0:00:53.73,Default,,0000,0000,0000,,and useful strategies?
Dialogue: 0,0:00:53.73,0:00:58.73,Default,,0000,0000,0000,,In this video, I will discuss\Nthese questions with you.
Dialogue: 0,0:00:58.73,0:01:01.04,Default,,0000,0000,0000,,Section 1, definition--
Dialogue: 0,0:01:01.04,0:01:03.51,Default,,0000,0000,0000,,Mergers and\NAcquisitions, or M&A,
Dialogue: 0,0:01:03.51,0:01:06.48,Default,,0000,0000,0000,,refer to the process of\Ncombining two or more companies
Dialogue: 0,0:01:06.48,0:01:08.28,Default,,0000,0000,0000,,into a single\Nentity or acquiring
Dialogue: 0,0:01:08.28,0:01:09.82,Default,,0000,0000,0000,,one company by another.
Dialogue: 0,0:01:09.82,0:01:13.59,Default,,0000,0000,0000,,M&A deals can take various\Nforms, such as a merger, where
Dialogue: 0,0:01:13.59,0:01:16.89,Default,,0000,0000,0000,,two companies combine to form\Na new entity or an acquisition
Dialogue: 0,0:01:16.89,0:01:18.82,Default,,0000,0000,0000,,where one company buys another.
Dialogue: 0,0:01:18.82,0:01:21.51,Default,,0000,0000,0000,,The key difference between\Na merger and an acquisition
Dialogue: 0,0:01:21.51,0:01:24.63,Default,,0000,0000,0000,,is the level of equality between\Nthe two companies involved.
Dialogue: 0,0:01:24.63,0:01:27.00,Default,,0000,0000,0000,,In a merger, the two\Ncompanies are typically
Dialogue: 0,0:01:27.00,0:01:29.58,Default,,0000,0000,0000,,of roughly equal size and\Nscale and come together
Dialogue: 0,0:01:29.58,0:01:30.84,Default,,0000,0000,0000,,to form a new entity.
Dialogue: 0,0:01:30.84,0:01:33.66,Default,,0000,0000,0000,,In an acquisition, one\Ncompany purchases another.
Dialogue: 0,0:01:33.66,0:01:36.97,Default,,0000,0000,0000,,And the target company becomes\Npart of the acquiring company.
Dialogue: 0,0:01:36.97,0:01:38.85,Default,,0000,0000,0000,,Here are two examples\Nto illustrate
Dialogue: 0,0:01:38.85,0:01:41.44,Default,,0000,0000,0000,,the differences between\Nthe merger and acquisition.
Dialogue: 0,0:01:41.44,0:01:44.46,Default,,0000,0000,0000,,In 2016, Dell and\NEMC Corporation
Dialogue: 0,0:01:44.46,0:01:49.00,Default,,0000,0000,0000,,completed a merger in which Dell\Nacquired EMC for $67 billion.
Dialogue: 0,0:01:49.00,0:01:52.06,Default,,0000,0000,0000,,The new company, Dell\NTechnologies, was formed.
Dialogue: 0,0:01:52.06,0:01:55.02,Default,,0000,0000,0000,,In this case, both companies\Nwere roughly the same size
Dialogue: 0,0:01:55.02,0:01:56.83,Default,,0000,0000,0000,,and had complementary\Nbusinesses,
Dialogue: 0,0:01:56.83,0:01:58.81,Default,,0000,0000,0000,,making it a good\Nfit for a merger.
Dialogue: 0,0:01:58.81,0:02:03.40,Default,,0000,0000,0000,,In 2014, Facebook acquired\NWhatsApp for $19 billion.
Dialogue: 0,0:02:03.40,0:02:05.77,Default,,0000,0000,0000,,The acquisition was\Nnot a merger of equals,
Dialogue: 0,0:02:05.77,0:02:08.35,Default,,0000,0000,0000,,as Facebook was much\Nlarger than WhatsApp.
Dialogue: 0,0:02:08.35,0:02:11.20,Default,,0000,0000,0000,,In this case, Facebook was\Ninterested in WhatsApp's
Dialogue: 0,0:02:11.20,0:02:13.27,Default,,0000,0000,0000,,messaging technology\Nand its large user
Dialogue: 0,0:02:13.27,0:02:18.46,Default,,0000,0000,0000,,base, which aligned with\NFacebook's strategic goals.
Dialogue: 0,0:02:18.46,0:02:22.39,Default,,0000,0000,0000,,Section 2, benefits-- here\Nare the major benefits
Dialogue: 0,0:02:22.39,0:02:23.99,Default,,0000,0000,0000,,of merger and acquisition.
Dialogue: 0,0:02:23.99,0:02:28.18,Default,,0000,0000,0000,,Number 1, market expansion--\None of the main reasons firms
Dialogue: 0,0:02:28.18,0:02:31.36,Default,,0000,0000,0000,,pursue M&A deals is to\Nexpand their market share
Dialogue: 0,0:02:31.36,0:02:32.96,Default,,0000,0000,0000,,and access new markets.
Dialogue: 0,0:02:32.96,0:02:35.33,Default,,0000,0000,0000,,By acquiring or merging\Nwith another company,
Dialogue: 0,0:02:35.33,0:02:38.20,Default,,0000,0000,0000,,a firm can gain access to\Nnew customers, products,
Dialogue: 0,0:02:38.20,0:02:40.67,Default,,0000,0000,0000,,and services that it\Nmay not have had before.
Dialogue: 0,0:02:40.67,0:02:43.81,Default,,0000,0000,0000,,Number 2, synergies\Nand cost savings--
Dialogue: 0,0:02:43.81,0:02:47.23,Default,,0000,0000,0000,,M&A deals can create synergies\Nbetween the two companies
Dialogue: 0,0:02:47.23,0:02:49.84,Default,,0000,0000,0000,,involved, allowing them\Nto combine their resources
Dialogue: 0,0:02:49.84,0:02:52.15,Default,,0000,0000,0000,,and capabilities to\Nachieve greater efficiency
Dialogue: 0,0:02:52.15,0:02:53.42,Default,,0000,0000,0000,,and cost savings.
Dialogue: 0,0:02:53.42,0:02:56.98,Default,,0000,0000,0000,,Number three,\Ndiversification-- M&A deals
Dialogue: 0,0:02:56.98,0:02:59.44,Default,,0000,0000,0000,,can help firms diversify\Ntheir operations
Dialogue: 0,0:02:59.44,0:03:02.47,Default,,0000,0000,0000,,and reduce their dependence\Non a single product or market.
Dialogue: 0,0:03:02.47,0:03:05.50,Default,,0000,0000,0000,,By acquiring or merging with a\Ncompany in a different industry
Dialogue: 0,0:03:05.50,0:03:08.53,Default,,0000,0000,0000,,or market, a firm can spread\Nits risk and gain exposure
Dialogue: 0,0:03:08.53,0:03:09.90,Default,,0000,0000,0000,,to new opportunities.
Dialogue: 0,0:03:09.90,0:03:13.77,Default,,0000,0000,0000,,Number 4, acquire new\Ntechnologies or capabilities--
Dialogue: 0,0:03:13.77,0:03:16.43,Default,,0000,0000,0000,,M&A deals can provide\Na firm with access
Dialogue: 0,0:03:16.43,0:03:18.44,Default,,0000,0000,0000,,to new technologies\Nor capabilities
Dialogue: 0,0:03:18.44,0:03:20.70,Default,,0000,0000,0000,,that it may not have\Ndeveloped on its own.
Dialogue: 0,0:03:20.70,0:03:22.73,Default,,0000,0000,0000,,For example, a\Ncompany may acquire
Dialogue: 0,0:03:22.73,0:03:25.80,Default,,0000,0000,0000,,a startup that has developed\Na new technology or product.
Dialogue: 0,0:03:25.80,0:03:28.50,Default,,0000,0000,0000,,Number 5, financial benefits--
Dialogue: 0,0:03:28.50,0:03:31.85,Default,,0000,0000,0000,,M&A deals can provide a firm\Nwith financial benefits,
Dialogue: 0,0:03:31.85,0:03:34.56,Default,,0000,0000,0000,,such as access to new\Nsources of capital,
Dialogue: 0,0:03:34.56,0:03:37.49,Default,,0000,0000,0000,,improved credit ratings,\Nor increased cash flow.
Dialogue: 0,0:03:37.49,0:03:39.99,Default,,0000,0000,0000,,By acquiring or merging\Nwith another company,
Dialogue: 0,0:03:39.99,0:03:43.28,Default,,0000,0000,0000,,a firm can improve its financial\Nposition and gain access
Dialogue: 0,0:03:43.28,0:03:48.11,Default,,0000,0000,0000,,to new sources of funding that\Nit may not have had before.
Dialogue: 0,0:03:48.11,0:03:51.89,Default,,0000,0000,0000,,Section 3, examples--\Nhere are a few successful
Dialogue: 0,0:03:51.89,0:03:54.69,Default,,0000,0000,0000,,and failed examples of\Nmergers and acquisitions.
Dialogue: 0,0:03:54.69,0:03:58.59,Default,,0000,0000,0000,,First, the Walt Disney Company\Nand Pixar Animation Studios--
Dialogue: 0,0:03:58.59,0:04:03.11,Default,,0000,0000,0000,,in 2006, the Walt Disney Company\Nacquired Pixar Animation Studios
Dialogue: 0,0:04:03.11,0:04:05.22,Default,,0000,0000,0000,,for $7.4 billion.
Dialogue: 0,0:04:05.22,0:04:08.45,Default,,0000,0000,0000,,The merger brought together two\Nof the most successful animation
Dialogue: 0,0:04:08.45,0:04:10.58,Default,,0000,0000,0000,,studios in the world,\Nallowing Disney
Dialogue: 0,0:04:10.58,0:04:12.72,Default,,0000,0000,0000,,to expand its\Nanimation capabilities
Dialogue: 0,0:04:12.72,0:04:15.46,Default,,0000,0000,0000,,and access Pixar's\Ncutting-edge technology.
Dialogue: 0,0:04:15.46,0:04:18.79,Default,,0000,0000,0000,,The merger was successful in\Nterms of financial performance,
Dialogue: 0,0:04:18.79,0:04:20.52,Default,,0000,0000,0000,,as the combined\Ncompany's revenue
Dialogue: 0,0:04:20.52,0:04:22.41,Default,,0000,0000,0000,,and profits increased\Nsignificantly
Dialogue: 0,0:04:22.41,0:04:24.16,Default,,0000,0000,0000,,in the years following the deal.
Dialogue: 0,0:04:24.16,0:04:27.36,Default,,0000,0000,0000,,It also produced some of the\Nhighest-grossing animated movies
Dialogue: 0,0:04:27.36,0:04:31.17,Default,,0000,0000,0000,,of all time, including Toy\NStory 3 and Finding Dory.
Dialogue: 0,0:04:31.17,0:04:33.37,Default,,0000,0000,0000,,Second, Exxon and Mobil--
Dialogue: 0,0:04:33.37,0:04:37.41,Default,,0000,0000,0000,,in 1999, Exxon and Mobil, two\Nof the world's largest oil
Dialogue: 0,0:04:37.41,0:04:39.82,Default,,0000,0000,0000,,companies, merged\Nto form ExxonMobil.
Dialogue: 0,0:04:39.82,0:04:43.05,Default,,0000,0000,0000,,The merger created the world's\Nlargest publicly traded oil
Dialogue: 0,0:04:43.05,0:04:45.06,Default,,0000,0000,0000,,company, with a\Nmarket capitalization
Dialogue: 0,0:04:45.06,0:04:47.11,Default,,0000,0000,0000,,of over $400 billion.
Dialogue: 0,0:04:47.11,0:04:49.02,Default,,0000,0000,0000,,The merger was\Nsuccessful in terms
Dialogue: 0,0:04:49.02,0:04:51.96,Default,,0000,0000,0000,,of operational performance,\Nas it allowed ExxonMobil
Dialogue: 0,0:04:51.96,0:04:55.35,Default,,0000,0000,0000,,to streamline its operations,\Nreduce costs, and increase
Dialogue: 0,0:04:55.35,0:04:56.29,Default,,0000,0000,0000,,efficiency.
Dialogue: 0,0:04:56.29,0:04:59.52,Default,,0000,0000,0000,,The combined company also\Nbenefited from improved access
Dialogue: 0,0:04:59.52,0:05:02.56,Default,,0000,0000,0000,,to new oil reserves, which\Nhelped to boost profits.
Dialogue: 0,0:05:02.56,0:05:05.01,Default,,0000,0000,0000,,In addition, the merger\Nallowed ExxonMobil
Dialogue: 0,0:05:05.01,0:05:07.08,Default,,0000,0000,0000,,to weather the volatility\Nof the oil market
Dialogue: 0,0:05:07.08,0:05:08.74,Default,,0000,0000,0000,,in the years following the deal.
Dialogue: 0,0:05:08.74,0:05:13.35,Default,,0000,0000,0000,,Third Daimler-Benz and\NChrysler-- in 1998, Daimler-Benz
Dialogue: 0,0:05:13.35,0:05:16.94,Default,,0000,0000,0000,,acquired Chrysler in a\Ndeal valued at $36 billion,
Dialogue: 0,0:05:16.94,0:05:18.50,Default,,0000,0000,0000,,creating DaimlerChrysler.
Dialogue: 0,0:05:18.50,0:05:20.29,Default,,0000,0000,0000,,The merger was\Nintended to create
Dialogue: 0,0:05:20.29,0:05:22.18,Default,,0000,0000,0000,,a global automotive\Npowerhouse that
Dialogue: 0,0:05:22.18,0:05:25.52,Default,,0000,0000,0000,,could compete with rivals such\Nas Toyota and General Motors.
Dialogue: 0,0:05:25.52,0:05:27.52,Default,,0000,0000,0000,,However, the two\Ncompanies struggled
Dialogue: 0,0:05:27.52,0:05:29.75,Default,,0000,0000,0000,,to integrate their\Noperations and cultures,
Dialogue: 0,0:05:29.75,0:05:31.64,Default,,0000,0000,0000,,and the merger\Nultimately failed.
Dialogue: 0,0:05:31.64,0:05:33.55,Default,,0000,0000,0000,,DaimlerChrysler\Nsuffered from a lack
Dialogue: 0,0:05:33.55,0:05:36.49,Default,,0000,0000,0000,,of clear leadership, cultural\Nclashes, and a failure
Dialogue: 0,0:05:36.49,0:05:38.39,Default,,0000,0000,0000,,to capitalize on synergies.
Dialogue: 0,0:05:38.39,0:05:40.25,Default,,0000,0000,0000,,The company's profits declined.
Dialogue: 0,0:05:40.25,0:05:43.06,Default,,0000,0000,0000,,And in 2007, Daimler\Nsold Chrysler
Dialogue: 0,0:05:43.06,0:05:45.19,Default,,0000,0000,0000,,to a private equity\Nfirm for a fraction
Dialogue: 0,0:05:45.19,0:05:46.90,Default,,0000,0000,0000,,of its original purchase price.
Dialogue: 0,0:05:46.90,0:05:49.16,Default,,0000,0000,0000,,Fourth, Microsoft and Nokia--
Dialogue: 0,0:05:49.16,0:05:53.08,Default,,0000,0000,0000,,in 2014, Microsoft acquired\NNokia's handset business
Dialogue: 0,0:05:53.08,0:05:56.95,Default,,0000,0000,0000,,for $7.2 billion, with the\Ngoal of expanding its presence
Dialogue: 0,0:05:56.95,0:05:58.13,Default,,0000,0000,0000,,in the mobile market.
Dialogue: 0,0:05:58.13,0:06:00.13,Default,,0000,0000,0000,,However, the\Nacquisition turned out
Dialogue: 0,0:06:00.13,0:06:02.41,Default,,0000,0000,0000,,to be a failure as\NMicrosoft struggled
Dialogue: 0,0:06:02.41,0:06:05.26,Default,,0000,0000,0000,,to integrate Nokia's hardware\Nbusiness with its software
Dialogue: 0,0:06:05.26,0:06:06.29,Default,,0000,0000,0000,,and services.
Dialogue: 0,0:06:06.29,0:06:09.20,Default,,0000,0000,0000,,Microsoft's mobile business\Ncontinued to decline.
Dialogue: 0,0:06:09.20,0:06:11.53,Default,,0000,0000,0000,,And in 2016, the\Ncompany announced
Dialogue: 0,0:06:11.53,0:06:13.45,Default,,0000,0000,0000,,that it would sell its\Nfeature phone business
Dialogue: 0,0:06:13.45,0:06:14.98,Default,,0000,0000,0000,,to a subsidiary of Foxconn.
Dialogue: 0,0:06:14.98,0:06:17.63,Default,,0000,0000,0000,,
Dialogue: 0,0:06:17.63,0:06:20.22,Default,,0000,0000,0000,,Section 4, failed reasons--
Dialogue: 0,0:06:20.22,0:06:23.13,Default,,0000,0000,0000,,according to a study by the\NHarvard Business Review,
Dialogue: 0,0:06:23.13,0:06:26.12,Default,,0000,0000,0000,,up to 70% of M&A\Ndeals fail to deliver
Dialogue: 0,0:06:26.12,0:06:28.08,Default,,0000,0000,0000,,the intended value or benefits.
Dialogue: 0,0:06:28.08,0:06:30.92,Default,,0000,0000,0000,,Here are several reasons\Nwhy mergers and acquisitions
Dialogue: 0,0:06:30.92,0:06:31.80,Default,,0000,0000,0000,,can fail.
Dialogue: 0,0:06:31.80,0:06:34.29,Default,,0000,0000,0000,,Number 1, cultural clash--
Dialogue: 0,0:06:34.29,0:06:36.53,Default,,0000,0000,0000,,companies that have\Ndifferent cultures and ways
Dialogue: 0,0:06:36.53,0:06:39.59,Default,,0000,0000,0000,,of doing business may struggle\Nto integrate their operations
Dialogue: 0,0:06:39.59,0:06:41.37,Default,,0000,0000,0000,,and work effectively together.
Dialogue: 0,0:06:41.37,0:06:45.71,Default,,0000,0000,0000,,Number 2, poor due diligence--\Na lack of thorough due diligence
Dialogue: 0,0:06:45.71,0:06:48.74,Default,,0000,0000,0000,,can result in unexpected\Nproblems and hidden liabilities
Dialogue: 0,0:06:48.74,0:06:51.60,Default,,0000,0000,0000,,that can damage the\Nsuccess of an M&A deal.
Dialogue: 0,0:06:51.60,0:06:55.52,Default,,0000,0000,0000,,Number 3, overpayment-- paying\Ntoo much for an acquisition
Dialogue: 0,0:06:55.52,0:06:58.34,Default,,0000,0000,0000,,can result in a failure to\Ngenerate a positive return
Dialogue: 0,0:06:58.34,0:07:00.05,Default,,0000,0000,0000,,on investment and\Nput the company
Dialogue: 0,0:07:00.05,0:07:02.19,Default,,0000,0000,0000,,in a precarious\Nfinancial position.
Dialogue: 0,0:07:02.19,0:07:05.10,Default,,0000,0000,0000,,Number 4, integration\Nchallenges--
Dialogue: 0,0:07:05.10,0:07:07.28,Default,,0000,0000,0000,,the process of\Nintegrating two companies
Dialogue: 0,0:07:07.28,0:07:10.65,Default,,0000,0000,0000,,can be complex and difficult,\Nleading to delays, confusion,
Dialogue: 0,0:07:10.65,0:07:12.18,Default,,0000,0000,0000,,and loss of key talent.
Dialogue: 0,0:07:12.18,0:07:15.56,Default,,0000,0000,0000,,Number 5, strategic\Nmisalignment-- companies
Dialogue: 0,0:07:15.56,0:07:18.48,Default,,0000,0000,0000,,may fail to align their\Nstrategic goals and objectives,
Dialogue: 0,0:07:18.48,0:07:21.12,Default,,0000,0000,0000,,resulting in conflicting\Npriorities and difficulty
Dialogue: 0,0:07:21.12,0:07:22.60,Default,,0000,0000,0000,,in achieving synergies.
Dialogue: 0,0:07:22.60,0:07:25.30,Default,,0000,0000,0000,,Number 6, regulatory issues.
Dialogue: 0,0:07:25.30,0:07:28.42,Default,,0000,0000,0000,,M&A deals may require\Nregulatory approval.
Dialogue: 0,0:07:28.42,0:07:30.84,Default,,0000,0000,0000,,And failure to obtain\Nnecessary approvals
Dialogue: 0,0:07:30.84,0:07:32.64,Default,,0000,0000,0000,,can prevent the deal\Nfrom going through
Dialogue: 0,0:07:32.64,0:07:34.78,Default,,0000,0000,0000,,or result in significant delays.
Dialogue: 0,0:07:34.78,0:07:38.10,Default,,0000,0000,0000,,Number 7, failure to\Ncommunicate-- failure
Dialogue: 0,0:07:38.10,0:07:41.16,Default,,0000,0000,0000,,to communicate effectively\Nwith stakeholders, employees,
Dialogue: 0,0:07:41.16,0:07:43.86,Default,,0000,0000,0000,,and customers can lead to\Nuncertainty and resistance
Dialogue: 0,0:07:43.86,0:07:46.08,Default,,0000,0000,0000,,to change, making it\Ndifficult to achieve
Dialogue: 0,0:07:46.08,0:07:50.25,Default,,0000,0000,0000,,post-merger integration\Nand success.
Dialogue: 0,0:07:50.25,0:07:54.91,Default,,0000,0000,0000,,Section 5, strategies-- to\Navoid making the above mistakes,
Dialogue: 0,0:07:54.91,0:07:58.12,Default,,0000,0000,0000,,here are some key steps to\Nprepare for an M&A deal.
Dialogue: 0,0:07:58.12,0:08:00.51,Default,,0000,0000,0000,,First, develop a clear strategy.
Dialogue: 0,0:08:00.51,0:08:03.12,Default,,0000,0000,0000,,Before pursuing an\NM&A deal, companies
Dialogue: 0,0:08:03.12,0:08:05.04,Default,,0000,0000,0000,,need to develop a\Nclear strategy that
Dialogue: 0,0:08:05.04,0:08:07.75,Default,,0000,0000,0000,,aligns with their long-term\Ngoals and objectives.
Dialogue: 0,0:08:07.75,0:08:09.81,Default,,0000,0000,0000,,This strategy should\Nconsider factors
Dialogue: 0,0:08:09.81,0:08:13.00,Default,,0000,0000,0000,,such as the target company's\Nindustry, financial position,
Dialogue: 0,0:08:13.00,0:08:14.77,Default,,0000,0000,0000,,and potential for synergies.
Dialogue: 0,0:08:14.77,0:08:16.98,Default,,0000,0000,0000,,Second, conduct due diligence.
Dialogue: 0,0:08:16.98,0:08:18.81,Default,,0000,0000,0000,,Conducting thorough\Ndue diligence
Dialogue: 0,0:08:18.81,0:08:21.06,Default,,0000,0000,0000,,is crucial to identifying\Npotential risks
Dialogue: 0,0:08:21.06,0:08:24.26,Default,,0000,0000,0000,,and opportunities\Nassociated with an M&A deal.
Dialogue: 0,0:08:24.26,0:08:26.87,Default,,0000,0000,0000,,This includes analyzing\Nfinancial statements,
Dialogue: 0,0:08:26.87,0:08:29.89,Default,,0000,0000,0000,,legal documents, and other key\Ninformation about the target
Dialogue: 0,0:08:29.89,0:08:30.62,Default,,0000,0000,0000,,company.
Dialogue: 0,0:08:30.62,0:08:32.72,Default,,0000,0000,0000,,Third, secure financing.
Dialogue: 0,0:08:32.72,0:08:36.41,Default,,0000,0000,0000,,M&A deals often require\Nsignificant amounts of capital,
Dialogue: 0,0:08:36.41,0:08:38.62,Default,,0000,0000,0000,,so it's important\Nto secure financing
Dialogue: 0,0:08:38.62,0:08:40.01,Default,,0000,0000,0000,,in advance of the deal.
Dialogue: 0,0:08:40.01,0:08:42.76,Default,,0000,0000,0000,,This may involve working\Nwith banks, investors,
Dialogue: 0,0:08:42.76,0:08:44.60,Default,,0000,0000,0000,,or other sources of funding.
Dialogue: 0,0:08:44.60,0:08:46.67,Default,,0000,0000,0000,,Fourth, plan for integration.
Dialogue: 0,0:08:46.67,0:08:49.78,Default,,0000,0000,0000,,Successful M&A deals\Nrequire careful planning
Dialogue: 0,0:08:49.78,0:08:51.62,Default,,0000,0000,0000,,for post-merger integration.
Dialogue: 0,0:08:51.62,0:08:54.13,Default,,0000,0000,0000,,This includes developing\Na plan for integrating
Dialogue: 0,0:08:54.13,0:08:57.22,Default,,0000,0000,0000,,the target company's operations,\Nemployees, and culture
Dialogue: 0,0:08:57.22,0:08:58.88,Default,,0000,0000,0000,,with the acquiring companies.
Dialogue: 0,0:08:58.88,0:09:01.19,Default,,0000,0000,0000,,Fifth, communicate effectively.
Dialogue: 0,0:09:01.19,0:09:04.57,Default,,0000,0000,0000,,M&A deals can be unsettling\Nfor employees, customers,
Dialogue: 0,0:09:04.57,0:09:05.81,Default,,0000,0000,0000,,and other stakeholders.
Dialogue: 0,0:09:05.81,0:09:08.08,Default,,0000,0000,0000,,So it's important to\Ncommunicate effectively
Dialogue: 0,0:09:08.08,0:09:09.35,Default,,0000,0000,0000,,throughout the process.
Dialogue: 0,0:09:09.35,0:09:12.70,Default,,0000,0000,0000,,This includes keeping employees\Nand other stakeholders informed
Dialogue: 0,0:09:12.70,0:09:15.28,Default,,0000,0000,0000,,of the deal's progress and\Naddressing any concerns
Dialogue: 0,0:09:15.28,0:09:16.88,Default,,0000,0000,0000,,or questions they may have.
Dialogue: 0,0:09:16.88,0:09:19.73,Default,,0000,0000,0000,,Sixth, seek legal\Nand financial advice.
Dialogue: 0,0:09:19.73,0:09:23.44,Default,,0000,0000,0000,,M&A deals are complex and\Ninvolve many legal and financial
Dialogue: 0,0:09:23.44,0:09:24.38,Default,,0000,0000,0000,,considerations.
Dialogue: 0,0:09:24.38,0:09:28.05,Default,,0000,0000,0000,,So it's important to seek advice\Nfrom experienced professionals.
Dialogue: 0,0:09:28.05,0:09:30.68,Default,,0000,0000,0000,,This includes working\Nwith lawyers, accountants,
Dialogue: 0,0:09:30.68,0:09:33.05,Default,,0000,0000,0000,,and other advisors who\Ncan provide guidance
Dialogue: 0,0:09:33.05,0:09:38.45,Default,,0000,0000,0000,,on the legal, financial, and\Ntax implications of the deal.
Dialogue: 0,0:09:38.45,0:09:42.20,Default,,0000,0000,0000,,Section 6, summary--\Nmergers and acquisitions
Dialogue: 0,0:09:42.20,0:09:45.08,Default,,0000,0000,0000,,refer to the process of\Ncombining two or more companies
Dialogue: 0,0:09:45.08,0:09:46.91,Default,,0000,0000,0000,,into a single\Nentity or acquiring
Dialogue: 0,0:09:46.91,0:09:48.45,Default,,0000,0000,0000,,one company by another.
Dialogue: 0,0:09:48.45,0:09:52.59,Default,,0000,0000,0000,,M&A deals can be complex and\Ninvolve many legal, financial,
Dialogue: 0,0:09:52.59,0:09:54.54,Default,,0000,0000,0000,,and regulatory considerations.
Dialogue: 0,0:09:54.54,0:09:57.05,Default,,0000,0000,0000,,They typically involve\Nextensive due diligence
Dialogue: 0,0:09:57.05,0:10:00.20,Default,,0000,0000,0000,,to assess the risks and benefits\Nof the deal, negotiation
Dialogue: 0,0:10:00.20,0:10:03.81,Default,,0000,0000,0000,,of terms and conditions, and\Nobtaining regulatory approvals.
Dialogue: 0,0:10:03.81,0:10:07.28,Default,,0000,0000,0000,,The success of an M&A deal\Ndepends on various factors,
Dialogue: 0,0:10:07.28,0:10:10.20,Default,,0000,0000,0000,,such as strategic fit,\Ncultural compatibility,
Dialogue: 0,0:10:10.20,0:10:12.69,Default,,0000,0000,0000,,and effective integration\Nof the two companies.
Dialogue: 0,0:10:12.69,0:10:15.21,Default,,0000,0000,0000,,All right, that's all\Nfor today's topic.
Dialogue: 0,0:10:15.21,0:10:17.70,Default,,0000,0000,0000,,If you have any questions\Nregarding this video,
Dialogue: 0,0:10:17.70,0:10:20.10,Default,,0000,0000,0000,,please leave your thoughts\Nin a comment below.
Dialogue: 0,0:10:20.10,0:10:22.38,Default,,0000,0000,0000,,I hope you guys have\Nenjoyed this video.
Dialogue: 0,0:10:22.38,0:10:24.83,Default,,0000,0000,0000,,And if you did, make sure\Nyou give it a thumbs up
Dialogue: 0,0:10:24.83,0:10:26.55,Default,,0000,0000,0000,,and subscribe to my channel.
Dialogue: 0,0:10:26.55,0:10:30.31,Default,,0000,0000,0000,,Thanks for watching, and\NI will see you next time.