Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 4th Sem 3549221 Mergers And Acquisition M And A Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER ( 4) ? EXAMINATION ? SUMMER 2019
Subject Code: 3549221 Date: 04/05/2019
Subject Name: Mergers & Acquisition (M & A)
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Question Text and Description Marks
Q.1 Explain following terms:
(a) Equity Carve out
(b) Demerger
(c) Crown jewel defense
(d) Conglomerate merger
(e) Joint venture
(f) Diversification
(g) Leverage buyouts
14
Q.2 (a) What is corporate restructuring? Explain various forms of corporate
restructuring.
7
(b) What is due diligence? What are the various areas in which due
diligence is carried on?
7
OR
(b) Explain the difficulties companies faces in cross border acquisitions.
7
Q.3 (a) What is takeover? Explain various forms of takeover. 7
(b) Write a short note on : ESOP
7
OR
Q.3 (a) Following are the particulars of two companies, A Ltd and T Ltd:
You are required to calculate exchange ratio and value of firm based
on Market price. Consider A Ltd as Acquirer & T Ltd as Target firm
Particulars A ltd T Ltd
EAT (Rs) 2,00,000 60,000
No. of equity shares outstanding 8000 4000
P/E ratio 8 5
7
(b) What are the conditions that have to be satisfied for an
amalgamation to qualify as ?amalgamation by way of merger??
7
Q.4 (a) Explain SEBI Buyback of Securities Regulations. 7
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER ( 4) ? EXAMINATION ? SUMMER 2019
Subject Code: 3549221 Date: 04/05/2019
Subject Name: Mergers & Acquisition (M & A)
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Question Text and Description Marks
Q.1 Explain following terms:
(a) Equity Carve out
(b) Demerger
(c) Crown jewel defense
(d) Conglomerate merger
(e) Joint venture
(f) Diversification
(g) Leverage buyouts
14
Q.2 (a) What is corporate restructuring? Explain various forms of corporate
restructuring.
7
(b) What is due diligence? What are the various areas in which due
diligence is carried on?
7
OR
(b) Explain the difficulties companies faces in cross border acquisitions.
7
Q.3 (a) What is takeover? Explain various forms of takeover. 7
(b) Write a short note on : ESOP
7
OR
Q.3 (a) Following are the particulars of two companies, A Ltd and T Ltd:
You are required to calculate exchange ratio and value of firm based
on Market price. Consider A Ltd as Acquirer & T Ltd as Target firm
Particulars A ltd T Ltd
EAT (Rs) 2,00,000 60,000
No. of equity shares outstanding 8000 4000
P/E ratio 8 5
7
(b) What are the conditions that have to be satisfied for an
amalgamation to qualify as ?amalgamation by way of merger??
7
Q.4 (a) Explain SEBI Buyback of Securities Regulations. 7
Page 2 of 3
(b) Write short note on: Competition act
7
OR
Q.4 (a) Write a short note on three recent acquisitions in India 7
(b) What are the transactions in relation to amalgamations and
demergers that are not charged to capital gains tax and why?
7
Q.5 In 2014, Flipkart acquired Myntra.com marking the biggest
consolidation in the e-commerce space in India, home grown e-
retailer Flipkart acquired online fashion retailer Myntra in an
estimated Rs 2,000 crore deal. As part of the acquisition, Myntra co-
founder Mukesh Bansal joined Flipkart's board and also oversee
Flipkart's fashion business. Flipkart and Myntra remain as two
separate entities, but people holding stock options in Myntra now
hold the same in Flipkart. The deal appears to be win-win for both
companies, and could be the making of a giant company, better
positioned to address India's growing demand for online retail-one
that could put up strong competition against rivals Flipkart, which
also operates under the marketplace model allowing retailers to offer
products on its platform, has since its inception raised over $500
million.
By joining forces, Flipkart and Myntra realized huge cost savings
on customer acquisition as they basically target the same customer
and demographic base. Combined company control the major E-
Commerce of India resulting insignificant economies of scales.
Amazon, with its well machinery, is ready to fight against all players
of E-Commerce in India which both Flipkart and Myntra are able to
face as a combined entity. Both the ventures have created huge
brand values and do share synergy in the online business.
The merger exploited this synergy in creating greater value as a
whole. Both Myntra and Flipkart have been trying hard to raise
funds for expanding their business. The combined entity found it
easier to approach potential investors who might be lured by the
combined market share these two may provide across categories. As
mentioned in the article already, Myntra and Flipkart can leverage
their existing infrastructure to provide better service and increase
customer base.
(a) Explain advantages of acquisition to both parties involved in above
case.
7
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER ( 4) ? EXAMINATION ? SUMMER 2019
Subject Code: 3549221 Date: 04/05/2019
Subject Name: Mergers & Acquisition (M & A)
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Question Text and Description Marks
Q.1 Explain following terms:
(a) Equity Carve out
(b) Demerger
(c) Crown jewel defense
(d) Conglomerate merger
(e) Joint venture
(f) Diversification
(g) Leverage buyouts
14
Q.2 (a) What is corporate restructuring? Explain various forms of corporate
restructuring.
7
(b) What is due diligence? What are the various areas in which due
diligence is carried on?
7
OR
(b) Explain the difficulties companies faces in cross border acquisitions.
7
Q.3 (a) What is takeover? Explain various forms of takeover. 7
(b) Write a short note on : ESOP
7
OR
Q.3 (a) Following are the particulars of two companies, A Ltd and T Ltd:
You are required to calculate exchange ratio and value of firm based
on Market price. Consider A Ltd as Acquirer & T Ltd as Target firm
Particulars A ltd T Ltd
EAT (Rs) 2,00,000 60,000
No. of equity shares outstanding 8000 4000
P/E ratio 8 5
7
(b) What are the conditions that have to be satisfied for an
amalgamation to qualify as ?amalgamation by way of merger??
7
Q.4 (a) Explain SEBI Buyback of Securities Regulations. 7
Page 2 of 3
(b) Write short note on: Competition act
7
OR
Q.4 (a) Write a short note on three recent acquisitions in India 7
(b) What are the transactions in relation to amalgamations and
demergers that are not charged to capital gains tax and why?
7
Q.5 In 2014, Flipkart acquired Myntra.com marking the biggest
consolidation in the e-commerce space in India, home grown e-
retailer Flipkart acquired online fashion retailer Myntra in an
estimated Rs 2,000 crore deal. As part of the acquisition, Myntra co-
founder Mukesh Bansal joined Flipkart's board and also oversee
Flipkart's fashion business. Flipkart and Myntra remain as two
separate entities, but people holding stock options in Myntra now
hold the same in Flipkart. The deal appears to be win-win for both
companies, and could be the making of a giant company, better
positioned to address India's growing demand for online retail-one
that could put up strong competition against rivals Flipkart, which
also operates under the marketplace model allowing retailers to offer
products on its platform, has since its inception raised over $500
million.
By joining forces, Flipkart and Myntra realized huge cost savings
on customer acquisition as they basically target the same customer
and demographic base. Combined company control the major E-
Commerce of India resulting insignificant economies of scales.
Amazon, with its well machinery, is ready to fight against all players
of E-Commerce in India which both Flipkart and Myntra are able to
face as a combined entity. Both the ventures have created huge
brand values and do share synergy in the online business.
The merger exploited this synergy in creating greater value as a
whole. Both Myntra and Flipkart have been trying hard to raise
funds for expanding their business. The combined entity found it
easier to approach potential investors who might be lured by the
combined market share these two may provide across categories. As
mentioned in the article already, Myntra and Flipkart can leverage
their existing infrastructure to provide better service and increase
customer base.
(a) Explain advantages of acquisition to both parties involved in above
case.
7
Page 3 of 3
(b) Explain various methods of valuation which can be used by acquirer
in above case.
7
OR
Q.5 (a) Explain various takeover defence tactics which could be used by
target firm in above case.
7
(b)
Explain difficulties faced by acquirer and target in successful
implementation of acquisition. And also state how to overcome such
challenges.
7
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This post was last modified on 19 February 2020