企业并购外文翻译文献.docx

企业并购外文翻译文献.docx

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企业并购外文翻译文献

企业并购外文翻译文献

（文档含中英文对照即英文原文和中文翻译）

外文:

MergersandAcquisitionsBasics:

AllYouNeedToKnow

IntroductiontoMergersandAcquisitions

Thefirstdecadeofthenewmillenniumheraldedaneraofglobalmega-mergers.Likethemergersandacquisitions（M&As）frenzyofthe1980sand1990s,severalfactorsfueledactivitythroughmid-2007:

readilyavailablecredit,historicallylowinterestrates,risingequitymarkets,technologicalchange,globalcompetition,andindustryconsolidation.Intermsofdollarvolume,M&Atransactionsreachedarecordlevelworldwidein2007.Butextendedturbulenceintheglobalcreditmarketssoonfollowed.

ThespeculativehousingbubbleintheUnitedStatesandelsewhere,largelyfinancedbydebt,burstduringthesecondhalfoftheyear.Banks,concernedaboutthevalueofmanyoftheirownassets,becameexceedinglyselectiveandlargelywithdrewfromfinancingthehighlyleveragedtransactionsthathadbecomecommonplacethepreviousyear.ThequalityofassetsheldbybanksthroughoutEuropeandAsiaalsobecamesuspect,reflectingtheglobalnatureofthecreditmarkets.Ascreditdriedup,amalaisespreadworldwideinthemarketforhighlyleveragedM&Atransactions.

By2008,acombinationofrecordhighoilpricesandareducedavailabilityofcreditsentmostoftheworld’seconomiesintorecession,reducingglobalM&Aactivitybymorethanone-thirdfromitsprevioushigh.Thisglobalrecessiondeepenedduringthefirsthalfof2009—despiteadramaticdropinenergypricesandhighlystimulativemonetaryandfiscalpolicies—extendingtheslumpinM&Aactivity.

Inrecentyears,governmentsworldwidehaveintervenedaggressivelyinglobalcreditmarkets（aswellasinmanufacturingandothersectorsoftheeconomy）inanefforttorestorebusinessandconsumerconfidence,restorecreditmarketfunctioning,andoffsetdeflationarypressures.Whatimpacthavesuchactionshadonmergersandacquisitions?

Itistooearlytotell,buttheimplicationsmaybesignificant.

M&Asareanimportantmeansoftransferringresourcestowheretheyaremostneededandofremovingunderperformingmanagers.Governmentdecisionstosavesomefirmswhileallowingotherstofailarelikelytodisruptthisprocess.Suchdecisionsareoftenbasedonthenotionthatsomefirmsaresimplytoobigtofailbecauseoftheirpotentialimpactontheeconomy—considerAIGintheUnitedStates.Othersareclearlymotivatedbypolitics.Suchactionsdisruptthesmoothfunctioningofmarkets,whichrewardsgooddecisionsandpenalizespoorones.Allowingabusinesstobelievethatitcanachieveasize“toobigtofail”maycreateperverseincentives.Plus,thereisverylittlehistoricalevidencethatgovernmentsarebetterthanmarketsatdecidingwhoshouldfailandwhoshouldsurvive.

Inthischapter,youwillgainanunderstandingoftheunderlyingdynamicsofM&Asinthecontextofanincreasinglyinterconnectedworld.ThechapterbeginswithadiscussionofM&Asaschangeagentsinthecontextofcorporaterestructuring.ThefocusisonM&Asandwhytheyhappen,withbriefconsiderationgiventoalternativewaysofincreasingshareholdervalue.Youwillalsobeintroducedtoavarietyoflegalstructuresandstrategiesthatareemployedtorestructurecorporations.

Throughoutthisbook,afirmthatattemptstoacquireormergewithanothercompanyiscalledanacquiringcompany,acquirer,orbidder.Thetargetcompanyortargetisthefirmbeingsolicitedbytheacquiringcompany.Takeoversorbuyoutsaregenerictermsforachangeinthecontrollingownershipinterestofacorporation.

Wordsinbolditalicsaretheonesmostimportantforyoutounderstandfully;theyareallincludedinaglossaryattheendofthebook.

MergersandAcquisitionsasChangeAgents

Businessescomeandgoinacontinuingchurn,perhapsbestillustratedbytheever-changingcompositionoftheso-calledFortune500—the500largestU.S.corporations.Only70ofthefirmsontheoriginal1955listof500areontoday’slist,andsome2,000firmshaveappearedonthelistatonetimeoranother.Mosthavedroppedoffthelisteitherthroughmerger,acquisition,bankruptcy,downsizing,orsomeotherformofcorporaterestructuring.Considerafewexamples:

Chrysler,BethlehemSteel,ScottPaper,Zenith,Rubbermaid,WarnerLambert.Thepopularmediatendstousethetermcorporaterestructuringtodescribeactionstakentoexpandorcontractafirm’sbasicoperationsorfundamentallychangeitsassetorfinancialstructure.

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Synergy

Synergyistherathersimplisticnotionthattwo（ormore）businessesincombinationwillcreategreatershareholdervaluethaniftheyareoperatedseparately.Itmaybemeasuredastheincrementalcashflowthatcanberealizedthroughcombinationinexcessofwhatwouldberealizedwerethefirmstoremainseparate.Therearetwobasictypesofsynergy:

operatingandfinancial.

OperatingSynergy（EconomiesofScaleandScope）

Operatingsynergycomprisesbotheconomiesofscaleandeconomiesofscope,whichcanbeimportantdeterminantsofshareholderwealthcreation.Gainsinefficiencycancomefromeitherfactorandfromimprovedmanagerialpractices.

Spreadingfixedcostsoverincreasingproductionlevelsrealizeseconomiesofscale,withscaledefinedbysuchfixedcostsasdepreciationofequipmentandamortizationofcapitalizedsoftware;normalmaintenancespending;obligationssuchasinterestexpense,leasepayments,andlong-termunion,customer,andvendorcontracts;andtaxes.Thesecostsarefixedinthattheycannotbealteredintheshortrun.Bycontrast,variablecostsarethosethatchangewithoutputlevels.Consequently,foragivenscaleoramountoffixedexpenses,thedollarvalueoffixedexpensesperunitofoutputandperdollarofrevenuedecreasesasoutputandsalesincrease.

Toillustratethepotentialprofitimprovementfromeconomiesofscale,let’sconsideranautomobileplantthatcanassemble10carsperhourandrunsaroundtheclock—whichmeanstheplantproduces240carsperday.Theplant’sfixedexpensesperdayare$1million,sotheaveragefixedcostpercarproducedis$4,167（i.e.,$1,000,000/240）.Nowimagineanimprovedassemblylinethatallowstheplanttoassemble20carsperhour,or480perday.Theaveragefixedcostpercarperdayfallsto$2,083（i.e.,$1,000,000/480）.Ifvariablecosts（e.g.,directlabor）percardonotincrease,andthesellingpricepercarremainsthesameforeachcar,theprofitimprovementpercarduetothedeclineinaveragefixedcostspercarperdayis$2,084（i.e.,$4,167–$2,083）.

Afirmwithhighfixedcostsasapercentageoftotalcostswillhavegreaterearningsvariabilitythanonewithalowerratiooffixedtototalcosts.Let’sconsidertwofirmswithannualrevenuesof$1billionandoperatingprofitsof$50million.Thefixedcostsatthefirstfirmrepresent100percentoftotalcosts,butatthesecondfixedcostsareonlyhalfofallcosts.Ifrevenuesatbothfirmsincreasedby$50million,thefirstfirmwouldseeincomeincreaseto$100million,preciselybecauseallofitscostsarefixed.Incomeatthesecondfirmwouldriseonlyto$75million,becausehalfofthe$50millionincreasedrevenuewouldhavetogotopayforincreasedvariablecosts.

Usingaspecificsetofskillsoranassetcurrentlyemployedtoproduceagivenproductorservicetoproducesomethingelserealizeseconomiesofscope,whicharefoundmostoftenwhenitischeapertocombinemultipleproductlinesinonefirmthantoproducetheminseparatefirms.Procter&Gamble,theconsumerproductsgiant,usesitshighlyregardedconsumermarketingskillstosellafullrangeofpersonalcareaswellaspharmaceuticalproducts.Hondaknowshowtoenhanceinternalcombustionengines,soinadditiontocars,thefirmdevelopsmotorcycles,lawnmowers,andsnowblowers.SequentTechnologyletscustomersrunapplicationsonUNIXandNToperatingsystemsonasinglecomputersystem.Citigroupusesthesamecomputercentertoprocessloanapplications,deposits,trustservices,andmutualfundaccountsforitsbank’scustomers.Eachisanexampleofeconomiesofscope,whereafirmisapplyingaspecificsetofskillsorassetstoproduceorsellmultipleproducts,thusgeneratingmorerevenue.

FinancialSynergy（LoweringtheCostofCapital）

Financialsynergyreferstotheimpactofmergersandacquisitionsonthecostofcapitaloftheacquiringfirmornewlyformedfirmresultingfromamergeroracquisition.Thecostofcapitalistheminimumreturnrequiredbyinvestorsandlenderstoinducethemtobuyafirm’sstockortolendtothefirm.

Intheory,thecostofcapitalcouldbereducedifthemergedfirmshavecashflowsthatdonotmoveupanddownintandem（i.e.,so-calledco-insurance）,realizefinancialeconomiesofscalefromlowersecuritiesissuanceandtransactionscosts,orresultinabettermatchingofinvestmentopportunitieswithinternallygeneratedfunds.Combiningafirmthathasexcesscashflowswithonewhoseinternallygeneratedcashflowisinsufficienttofunditsinvestmentopportunitiesmayalsoresultinalowercostofborrowing.Afirminamatureindustryexperiencingslowinggrowthmayproducecashflowswellinexcessofavailableinvestmentopportunities.Anotherfirminahigh-growthindustrymaynothaveenoughcashtorealizeitsinvestmentopportunities.Reflectingtheirdifferentgrowthratesandrisklevels,thefirminthematureindustrymayhavealowercostofcapitalthantheoneinthehigh-growthindustry,andcombiningthetwofirmscouldlowertheaveragecostofcapitalofthecombinedfirms.

Diversification

Buyingfirmsoutsidea