Global M&A is one of the most happening and fundamental element of corporate strategy in today's world.

Many companies around the world have merged with each other with a motive to expand their businesses and enhance revenue. In the span of few years there are many companies coming together for betterment across the globe. Recent mergers and acquisitions 2011 are Lipton Rosen & Katz in New York, Sullivan & Cromwell LLP in New York, Slaughter & May in London, Mallesons Stephen Jaques in Sydney, and Osler Hoskin & Harcourt LLP in Toronto. Even in India merger and acquisition has become a fashion today with a cut throat competition in the international market. There are domestic deals like Penta homes acquiring Agro Dutch Industries, ACC taking over Encore Cement and Addictive, Dalmia Cement acquiring Orissa Cement, Edelweiss Capital acquiring Anagram Capital. All these are recent merger and acquisition 2010 valued at about USD 2.16 billion. Apart from these there are other successful mergers in India as follows:

Tata Chemicals took over British salt based in UK with a deal of US $ 13 billion. This is one of the most successful recent mergers and acquisitions 2010 that made Tata even more powerful with a strong access to British Salt's facilities that are known to produce about 800,000 tons of pure white salt annually. Merger of Reliance Power and Reliance Natural Resources with a deal of US $11 billion is another biggest deal in the Indian industry. This merger between the two made it convenient and easy for the Reliance power to handle all its power projects as it now enjoys easy availability of natural gas. Airtel acquired Zain in Africa with an amount of US $ 10.7 billion to set new benchmarks in the telecom industry. Zain is known to be the third largest player in Africa and being acquired by Airtel it is deliberately increasing its base in the international market. ICICI Bank's acquisition of Bank of Rajasthan at aout Rs 3000 Crore is a greta move by ICICI to enhance its market share across the Indian boundaries especially in northern and western regions. Fortis Healthcare acquired Hong Kong's Quality Healthcare Asia Ltd for around Rs 882 Crore and is now on move to acquire the largest dental service provider in Australia, the Dental Corp at about Rs 450 Crore.

Company valuation
Company valuation is a systematic procedure for estimating the economic value of a business. It is a single value that represents the value of all the other components like

brand value, insolvency, and debtor's turnover that together form a company's value. It is done under many circumstances like at the time of mergers & acquisitions, reorganization, raising public funds, and winding up of the business. Some of the common methods of company valuation are:

Asset valuation - Under this method, the value of assets of a company is determined by calculating the fair market value of the assets, the improvement cost of all the assets held under lease, and the value of inventory that includes finished goods, work-in-progress, and raw materials. It is ideal for valuating manufacturing businesses because their maximum investment is in assets such as machinery, equipment, power units, etc. Capitalization of income valuation - This is suitable for valuating organizations like business consultancy firms, professional firms, etc. because they are not asset-intensive in nature. The success of their business depends upon the quality of service and not on the level of output produced and sold. The items that can be included for the purpose of valuation are discretionary. Ideally, one can use the location of a business, client portfolio, technical expertise, profit and loss trends, and portfolio of debtors and creditors. Market valuation - Under this approach, a multiplier formula for every industry is calculated depending upon the average sales figures of various companies in the industry. One can simply substitute figures in the formula to derive the value.

DIFFERENCE BETWEEN MERGERS AND ACQUISITIONS

Merger and acquisition is often known to be a single terminology defined as a process of combining two or more companies together. The fact remains that the so-called single terminologies are different terms used under different situations. Though there is a thin line difference between the two but the impact of the kind of completely different in both the cases. Merger is considered to be a process when two or more companies come together to expand their business operations. In such a case the deal gets finalized on friendly terms and both the companies share equal profits in the newly created entity. When one company takes over the other and rules all its business operations, it is known as acquisitions. In this process of restructuring, one company overpowers the other company and the decision is mainly taken during downturns in economy or during declining profit margins. Among the two, the one that is financially stronger and bigger in all ways establishes it power. The combined operations then run under the name of the powerful entity who also takes over the existing stocks of the other company. Another difference is, in an acquisition usually two companies of different sizes come together to combat the challenges of downturn and in a merger two companies of same size combine to increase their strength and financial gains along with breaking the trade barriers. A deal in case of an acquisition is often done in an unfriendly manner, it is more or less a forceful or a helpless association where the powerful company either swallows the operation or a company in loss is forced to sell its entity. In case of a merger there is a friendly association where both the partners hold the same percentage of ownership and equal profit share.

there are two method for calculating net worth 1)share capital+reserve & surplus 2)Asset-Liability

What is Accretion / Dilution Analysis? Accretion / dilution analysis is, in essence, complex words attributed to a simple test, althought there is some grunt work that is required. Basically, accretion / dilution analysis answers the question: "Does the proposed deal increase or decrease the posttransaction earnings per share (EPS)?" This determines the justification for the deal in the first place. Steps Involved in Accretion / Dilution Analysis

1. Estimate a pro forma net income for the combined entities. a. Include conservative estimates of net income, taking into account prospective operational and financial synergies that are likely to result after the deal is finished. Some groups incorporate the last 12 months (LTM) as well as one- or two-year projections. Others include projected net income only. Regarding prospective synergies, the new company may anticipate higher revenues, due to cross-selling of a wider array of product and service offerings, as well as lower costs, due to the elimination of redundant functions and manufacturing facilities. (If you're unfamiliar with pro forma net income, refer to Understanding Pro-Forma Earnings.) b. Aside from variables that affect the pro-forma net income due to anticipated synergies, the analyst should also account for transaction-related adjustments that may occur, such as higher interest expense, if this is a leveraged buyout and debt is used to fund the deal, lower interest income, if cash is used to make the purchase, and additional considerations on posttransaction intangible asset amortizations. 2. Calculate the combined company's new share count. a. Tabulate the prospective acquirer's share count. Factor new shares that would be issued to make the purchase if it's a stock deal. 3. Check the accuracy of your numbers. a. Lest you risk looking dumb in front of the deal team, check your numbers before presenting them. Are you incorporating some professional skepticism on prospective synergies, or is the entire garden laden with beautiful roses? 4. Divide pro forma net income by pro forma shares to arrive at a pro forma EPS. a. Is the pro forma EPS higher than the original EPS? An increase to EPS is regarded as accretion, while a decrease is regarded as dilution. Many on Wall Street typically frown at dilutive transactions. If a deal has a reasonable likelihood of turning accretive from year two and onwards, a proposed business combination may be more palatable