英国留学生essay帮写节选

<P><FONT style="BACKGROUND-COLOR: #ffffff" face=宋体>Literature review</FONT></P> <P><FONT style="BACKGROUND-COLOR: #ffffff" face=宋体>4.1 Introduction<BR>Mergers and acquisitions (M&A) happened everyday in Wall street which helps small companies to be big ones. It is one of the biggest parts in corporate finance world. In this chapter, we will discuss the definition, aims of M&A, merit and defect, methods and one example of L’Oreal’s acquisition of YSL.<BR>In order to create a “big L’Oreal”, the company took over a lot of cosmetic companies to expand its business. In 2006, the L’Oreal plc made its acquisition of SkinEthic, the Body Shop, Beauty Alliance, French <BR>Laboratoire Sanoflore. In the year of 2007, the company acquired Beauty Alliance, Pure Ology, Maly’s West. In 2008, the L’Oreal plc took over 100% of Columbia Beauty Supply on January, CollaGenex on February, Le Club des Créateurs de Beauté on May, YSL Beauté on June. Mergers and acquisition is one of the L’Oreal plc’s main strategy to expand its market and enhance its company’s size.(年报16到18)<BR>4.2 Definition<BR>In order to get more market shares and work more efficiently, companies likes to come together. Then mergers and acquisition happened. The meaning of the merger and acquisition likes the easy equation: 1+1=3. If the shareholder value of the together company is higher than one company’s value plus another, they will be happy to get together. <BR>Although Mergers and Acquisitions have the same meaning, they have some important difference. When one company purchases another and become the new owner of the company, it is called acquisition. The one that is taken over will not exist from then on. This often happens between large company and small company. The large one will own all the business and shares of the small one. To be difference, mergers often happen between companies that are the similar size. The companies work together instead of work separately. For example, the merger of company A-X and company B-Y will create a new one A-B. Both A-X and B-Y will give up their shares and issue new ones.<BR>( http://www.investopedia.com/university/mergers/mergers1.asp)<BR>“Merger is a business combination that results in a new reporting entity, formed from combining entities in which the shareholders come together in partnership for mutual sharing of risks and benefits of the combined entity .In such a transaction no party to the combination obtains control or is dominant whether by share ownership, directors control or otherwise” as is reported by International Accounting Standard 22. (IFSR 2008)But another view reported by IFSR 3 that M&A are the business combination which control one or more business. For example “true mergers” and “mergers of equals” are two kinds of Mergers.( IFSR 2008)<BR>4.3 Aims of Mergers and Acquisitions<BR>There are several aims of mergers and acquisitions. The main motivations are “synergies” and the “correction of managerial failure.”(资料1p9) In order to gain synergies on operation and finance, companies trend to take over other companies. The operation synergies increase when carry out the scale and scope strategy and “vertical integration”, cancel the repeat actions, share the technology and skills, decrease the agency cost by sharing the whole asset. (Ravenscraft and Scherer 1987, 1989) What’s more, the M&A cut down the production cost and distribution cost, increase the return, and enhance the cash flow of the share holders’. (Comment and Jarrell 1995) Further more, the M&A can diversify the acquisitions, improve the cash flow and reduce the risk of bankrupt. (Lewellen 1971, Higgins and Schall 1975) In addition, it helps to gain the capital and internal capital market at a cheaper price (Bhide 1990) and to reduce the risk of mangers’ employment by using the tax shield. (Amihud and Lev 1981) <BR>Another aim is “ho