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Analysis: Tech Mahindra-Mahindra Satyam merger | Business Standard News
Company data While the table above reflects the quantitative mix in terms of proposed revenues without considering potential synergiesthe quality of revenue is also expected to be high as it would come from: Marketing Financial Products Textbooks Collection.
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Here’s why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster. This case study analyzes the merger between Tech Mahindra and Mahindra Satyam.
While investors tend to be suspicious of the expected benefits and synergies resulting out of any merger, Tech Mahindra ‘s capabilities in turning around Mahindra Satyam post the acquisition have been amply demonstrated, which is clearly evident merged the robust financial and qualitative performances of Mahindra Satyam.
Analysis: Tech Mahindra-Mahindra Satyam merger
FINC click on the button below, and select the case from the list of available cases: Case Study Volumes Collection. Tech Mahindra is a leading global systems integrator and business transformation consulting organization, focused primarily on the telecommunications industry. The economies of scale, diverse offerings and balanced geographic exposure, can give the combined Mahindra entity the strength to compete head to head with the Big 4; while that may not stuvy immediately, given the usual lag associated with the integration process connected with any merger, the combined Mahindra entity can be expected to become quite formidable within years post the merger.
Wherever these contingent liabilities could be quantified, Mahindra Satyam’s management made provisions in the books of accounts based on their best possible estimates, as stated clearly in the FY12 Annual Report.
Merger and acquisition and types of synergies. Post-merger, the expected geographic mix should be as follows: Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice.
Nor is it a primary information source. Following the merger, the expected mix in terms of verticals should be as follows: Please do not use this option on a public machine.
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Other profitability related synergies. Sign Up Forgot Password? The following benefits are expected as a result of the merger: Through the proposed merger the following opportunities will be pursued to enhance profitability: SinceEquitymaster sttudy been the source for honest and credible opinions on investing in India.
Other profitability related synergies: Let’s examine each of these benefits one by one. However, as indicated above, an investor should also note the contingent liabilities associated with Mahindra Satyam.
Initially, the minority shareholders of Mahindra Satyam were apprehensive about the timing of the merger with regards to the unattractive valuations and the number of shares they would receive in exchange for one Tech Mahindra share.
Company data The above table clearly reflects that post the merger, the combined entity’s business model would be essentially de-risked to a good extent with balanced exposure across geographies.
Tech Mahindra and Mahindra Satyam: Merger Analysis
Post merger, the expected client revenue contribution mix should be as follows: Wider portfolio of service offerings to existing Telecom clients of Tech Mahindra. This is not directed for access or use by anyone in eatyam country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement.
Although, both companies had strong presence globally, the companies had to resolve few other problems before going for the merger.