Mergers and acquisitions (слияния и поглощения) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions (организуют сделки по слияниям и поглощениям), which bring separate companies together to form larger ones (в результате которых отдельные компании объединяются в более крупные). When they're not creating big companies from smaller ones, corporate finance deals (сделки) do the reverse (производят обратный [результат]) and break up companies through spinoffs (отпочкование), carve-outs (отчуждение акций) or tracking stocks (следящие акции).
*Spinoff - The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.
*carve-outs - Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering. In most cases the parent company will spinoff the remaining interests to existing shareholders at a later date when the stock price is much higher.
Also known as a "carveout" or an "equity carve out."
*tracking stocks - Common stock issued by a parent company that tracks the performance of a particular division without having claim on the assets of the division or the parent company. Also known as "designer stock. When a parent company issues a tracking stock, all revenues and expenses of the applicable division are separated from the parent company's financial statements and bound to the tracking stock. Oftentimes, this is done to separate a subsidiary's high-growth division from a larger parent company that is presenting losses. The parent company and its shareholders, however, still control the operations of the subsidiary
Not surprisingly, these actions often make the news (становятся предметом сообщений СМИ). Deals can be worth (здесь: оцениваться в) hundreds of millions, or even billions, of dollars. They can dictate the fortunes (судьбу) of the companies involved for years to come (на многие годы вперед). For a CEO, leading an M&A can represent the highlight (здесь: ключевой момент) of a whole career. And it is no wonder (неудивительно) we hear about so many of these transactions; they happen all the time. Next time you flip open the newspaper’s business section, odds are good (высока вероятность) that at least one headline (газетный заголовок) will announce some kind of M&A transaction.
The Main Idea
One plus one makes three (1+1=3): this equation (уравнение) is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value (биржевую стоимость [акций]) over and above that of the sum of the two companies. Two companies together are more valuable (дороги) than two separate (отдельных) companies - at least, that's the reasoning (аргументы/доводы) behind M&A.
This rationale (довод) is particularly alluring (заманчив) to companies when times are tough (трудные). Strong companies will act to buy other companies to create a more competitive, cost-efficient (рентабельную) company. The companies will come together hoping to gain a greater market share (заполучить большую долю рынка) or to achieve greater efficiency (достичь большей результативности/экономической эффективности/полезной отдачи). Because of these potential benefits (потенциальных выгод), target companies (компании, ставшие объектами [поглощения]) will often agree to be purchased when they know they cannot survive alone (выжить в одиночку).
Distinction (отличие) between Mergers (слияниями) and Acquisitions (поглощенями)
Although they are often used as though they were synonymous (словно синонимы), the terms (термины) merger and acquisition mean slightly different things.
When one company takes over (поглощает/принимает на себя ведение дел) another and clearly established itself (занимает позицию) as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist (прекращает существование), the buyer "swallows" («заглатывает») the business and the buyer's stock continues to be traded.
A merger happens when two firms, often of about the same size (зачастую равные по размеру), agree to go forward (дословно: идти вперед) as a single (единая) new company rather than (а не) remain separately owned and operated. This kind of action (тип действий) is more precisely referred to (более точно называется) as a "merger of equals" (слияние равных). Both companies' stocks are surrendered (здесь: возвращаются/сдаются) and new company stock is issued in its place (вместо них выпускаются акции новой компании). For example, both Daimler-Benz and Chrysler ceased to exist (прекратили свое существование) when the two firms merged, and a new company, DaimlerChrysler, was created.
In practice, however, actual mergers of equals don't happen very often. Usually, one company will buy another and, as part of the deal's terms (по некоторым условиям сделки), simply allow (позволяет) the acquired firm to proclaim (покупаемой компании заявить) that the action is a merger of equals, even if it's technically an acquisition. Being bought out (формулировка «выкуп [компании]») often carries negative connotations, therefore (поэтому), by describing the deal as a merger (называя сделку слиянием), deal makers (организаторы сделки) and top managers try to make the takeover more palatable (привлекательным).
A purchase deal will also be called a merger when both CEOs (исполнительные директоры) agree that joining together (объединение) is in the best interest of both of their companies.
Whether a purchase is considered a merger or an acquisition (признание покупки слиянием или поглощением) really depends on whether the purchase is friendly or hostile (враждебная/неблагоприятная) and how it is announced. In other words, the real difference lies in how the purchase is communicated to and received by the target company's board of directors, employees and shareholders (иными словами отличие заключается в том, как покупка преподносится совету директоров, сотрудникам и акционерам компании-объекта поглощения и как она ими воспринимается).
Synergy (синергизм/преимущества совместной деятельности)
Synergy is the magic force that allows for enhanced cost efficiencies of the new business (магическая сила, позволяющая увеличить рентабельность нового предприятия). Synergy takes the form of revenue enhancement (увеличение доходов) and cost savings (экономии затрат). By merging, the companies hope to benefit (извлечь пользу) from the following:
• Staff reductions (сокращение персонала) - As every employee (сотрудник) knows, mergers tend to mean job losses (слияния обычно означают потерю рабочих мест). Consider (здесь: посчитайте) all the money saved from reducing the number of staff members (сэкономленные за счет сокращения штата) from accounting, marketing and other departments. Job cuts will also include the former CEO, who typically leaves with a compensation package.
• Economies of scale (экономия от масштаба производства) - Yes, size matters. Whether (будь то) it's purchasing stationery (закуп канцелярских товаров) or a new corporate IT system, a bigger company placing the orders (при размещении заказов) can save more on costs - when placing larger orders, companies have a greater ability to negotiate prices (обладают большей возможностью вести переговоры о ценах) with their suppliers.
• Acquiring new technology (приобретение технологии) - To stay competitive, companies need to stay on top of technological developments and their business applications (идти в ногу с технологическими новшествами и находить им коммерческое применение). By buying a smaller company with unique technologies, a large company can maintain (сохранить) or develop a competitive edge (конкурентное преимущество).
• Improved market reach (расширение рынка) and industry visibility (известность компании в своей отрасли) - Companies buy companies to reach new markets (чтобы выйти на новые рынки) and grow revenues (выручку) and earnings (фактический доход). A merge may expand (расширить) two companies' marketing and distribution, giving them new sales opportunities (возможности продаж). A merger can also improve a company's standing (позиции) in the investment community (в среде инвесторов; дословно: сообществе): bigger firms often have an easier time raising capital (легче привлечь капитал) than smaller ones.
Varieties of Mergers (разнообразие типов слияний)
From the perspective of business structures, there is a whole host (множество) of different mergers. Here are a few types, distinguished (отличающихся) by the relationship between the two companies that are merging:
• Horizontal merger - Two companies that are in direct competition and share the same product lines (ассортимент изделий) and markets.
• Vertical merger - A customer and company or a supplier and company. Think of a cone supplier (поставщик стаканчиков) merging with an ice cream maker (производитель мороженого).
• Market-extension merger (слияние с целью расширения рынка) - Two companies that sell the same products in different markets.
• Product-extension merger - Two companies selling different but related products in the same market.
• Conglomeration - Two companies that have no common business areas.
Showing posts with label business english. Show all posts
Showing posts with label business english. Show all posts
Monday, October 27, 2008
Гуру стратегического управления Майкл Портер: 5 сил - часть II с русскими эквивалентами сложных фраз
II. Threat Of Substitutes (угроза со стороны товаров-заменителей)
In Porter's model, substitute products refer to products (товарами-заменителями называются товары) in other industries. To the economist, a threat of substitutes (угроза со стороны заменителей) exists when a product's demand is affected (на спрос влияет) by the price change of a substitute product. A close substitute product (близкий товар-заменитель) constrains the ability (ограничивает возможность) of firms in an industry to raise prices.
The competition engendered by a Threat of Substitute (конкуренция, порожденная товарами-заменителями) comes from products outside the industry. The price of aluminum beverage cans (алюминиевых банок для напитков) is constrained (сдерживается) by the price of glass bottles, steel cans, and plastic containers.
III. Buyer Power
The power of buyers (сила/влияние покупателей) is the impact (воздействие) that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms (называют термином) a monopsony (монополия единственного покупателя определённого товара) - a market in which there are many suppliers (поставщиков) and one buyer (e.g. – Defense Ministry purchases from defense contractors (подрядчики)). Under such market conditions, the buyer sets the price (устанавливает цену). In reality few pure monopsonies exist, but frequently there is some asymmetry between a producing industry and buyers.
IV. Supplier Power (сила/влияние поставщика)
A producing industry requires raw materials (здесь: исходные материалы) – labor (рабочая сила), components, and other supplies. This requirement leads to buyer-supplier relationships (отношения) between the industry and the firms that provide (поставляют) it the raw materials used to create products. Suppliers, if powerful, can exert an influence (оказывать влияние) on the producing industry, such as selling raw materials at a high price to capture (чтобы захватить) some of the industry's profits.
V. Barriers to Entry (барьеры для доступа [конкурентов на рынок])
It is not only incumbent (уже действующие) rivals that pose a threat to (представляют угрозу для) firms in an industry; the possibility that new firms may enter the industry also affects (влияет на) competition. In theory, any firm should be able to enter and exit a market (должна быть в состоянии выйти на рынок и уйти с него), and if free entry (свободный доступ) and exit exists, then profits always should be nominal (незначительный). In reality, however, industries possess (обладают) characteristics that protect (охраняют) the high profit levels of firms in the market and inhibit (препятствовать) additional rivals from entering the market. These are barriers to entry (препятствия доступу).
Barriers to entry are more than the normal equilibrium adjustments (корректировки равновесия спроса и предложения) that markets typically make. For example, when industry profits increase, we would expect additional firms to enter the market to take advantage of the high profit levels (мы ожидаем появления на рынке дополнительных компаний с целью выгодного использования высокого уровня прибыли), over time profits decrease (с течением времени прибыль сокращается) for all firms in the industry. When profits decrease, we would expect some firms to exit the market thus restoring a market equilibrium (мы ожидаем, что некоторые компании уйдут с рынка, восстановив рыночное равновесие). Falling prices, or the expectation that future prices will fall, deters rivals from entering a market (сдерживают появление конкурентов на рынке). Firms also may be reluctant (могут не хотеть) to enter markets that are extremely uncertain (чрезвычайно неустойчивые), especially if entering involves (вход требует) expensive start-up costs (издержки, связанные с пуском нового предприятия). These are normal accommodations (здесь: приспособления) to market conditions. But if firms individually keep prices artificially (искусственно) low as a strategy to prevent potential entrants from entering the market (по предотвращению вступления на рынок новых игроков), such entry-deterring pricing (ценовая политика, сдерживающая появление новых игроков на рынке) establishes a barrier (устанавливает препятствие).
In Porter's model, substitute products refer to products (товарами-заменителями называются товары) in other industries. To the economist, a threat of substitutes (угроза со стороны заменителей) exists when a product's demand is affected (на спрос влияет) by the price change of a substitute product. A close substitute product (близкий товар-заменитель) constrains the ability (ограничивает возможность) of firms in an industry to raise prices.
The competition engendered by a Threat of Substitute (конкуренция, порожденная товарами-заменителями) comes from products outside the industry. The price of aluminum beverage cans (алюминиевых банок для напитков) is constrained (сдерживается) by the price of glass bottles, steel cans, and plastic containers.
III. Buyer Power
The power of buyers (сила/влияние покупателей) is the impact (воздействие) that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms (называют термином) a monopsony (монополия единственного покупателя определённого товара) - a market in which there are many suppliers (поставщиков) and one buyer (e.g. – Defense Ministry purchases from defense contractors (подрядчики)). Under such market conditions, the buyer sets the price (устанавливает цену). In reality few pure monopsonies exist, but frequently there is some asymmetry between a producing industry and buyers.
IV. Supplier Power (сила/влияние поставщика)
A producing industry requires raw materials (здесь: исходные материалы) – labor (рабочая сила), components, and other supplies. This requirement leads to buyer-supplier relationships (отношения) between the industry and the firms that provide (поставляют) it the raw materials used to create products. Suppliers, if powerful, can exert an influence (оказывать влияние) on the producing industry, such as selling raw materials at a high price to capture (чтобы захватить) some of the industry's profits.
V. Barriers to Entry (барьеры для доступа [конкурентов на рынок])
It is not only incumbent (уже действующие) rivals that pose a threat to (представляют угрозу для) firms in an industry; the possibility that new firms may enter the industry also affects (влияет на) competition. In theory, any firm should be able to enter and exit a market (должна быть в состоянии выйти на рынок и уйти с него), and if free entry (свободный доступ) and exit exists, then profits always should be nominal (незначительный). In reality, however, industries possess (обладают) characteristics that protect (охраняют) the high profit levels of firms in the market and inhibit (препятствовать) additional rivals from entering the market. These are barriers to entry (препятствия доступу).
Barriers to entry are more than the normal equilibrium adjustments (корректировки равновесия спроса и предложения) that markets typically make. For example, when industry profits increase, we would expect additional firms to enter the market to take advantage of the high profit levels (мы ожидаем появления на рынке дополнительных компаний с целью выгодного использования высокого уровня прибыли), over time profits decrease (с течением времени прибыль сокращается) for all firms in the industry. When profits decrease, we would expect some firms to exit the market thus restoring a market equilibrium (мы ожидаем, что некоторые компании уйдут с рынка, восстановив рыночное равновесие). Falling prices, or the expectation that future prices will fall, deters rivals from entering a market (сдерживают появление конкурентов на рынке). Firms also may be reluctant (могут не хотеть) to enter markets that are extremely uncertain (чрезвычайно неустойчивые), especially if entering involves (вход требует) expensive start-up costs (издержки, связанные с пуском нового предприятия). These are normal accommodations (здесь: приспособления) to market conditions. But if firms individually keep prices artificially (искусственно) low as a strategy to prevent potential entrants from entering the market (по предотвращению вступления на рынок новых игроков), such entry-deterring pricing (ценовая политика, сдерживающая появление новых игроков на рынке) establishes a barrier (устанавливает препятствие).
Гуру стратегического управления Майкл Портер: 5 сил - часть I с русскими эквивалентами сложных фраз
Porter's Five Forces
The model of pure competition implies (предполагает) that risk-adjusted (скорректированные с учетом риска) rates of return (нормы прибыли) should be constant (постоянными) across firms and industries. However, numerous (многочисленные) economic studies have affirmed (подтвердили) that different industries can sustain (поддерживать) different levels of profitability (прибыльности); part of this difference is explained by industry structure.
Michael Porter provided a framework (здесь: концепцию) that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms (преимущество перед конкурентами) can use this model to better understand the industry context (среда) in which the firm operates.
I. Rivalry
In the traditional economic model, competition among rival firms drives profits to zero (движет прибыль к нулю). But competition is not perfect and firms are not unsophisticated (простые) passive price takers (лица, соглашающиеся на определенную цену). Rather, firms strive for (стремятся к) a competitive advantage (конкурентное преимущество) over their rivals. The intensity of rivalry (конкуренции) among firms varies (варьируется) across industries, and strategic analysts are interested in these differences.
Economists measure rivalry by indicators of industry concentration (показатели концентрации промышленности). The Concentration Ratio (CR) is one such measure. The CR indicates the percent of market share (доля рынка в %) held by the four largest firms. A high concentration ratio (коэффициент) indicates that a high concentration of market share is held by the largest firms - the industry is concentrated. With only a few firms holding a large market share, the competitive landscape (конкурентная среда) is less competitive (closer to a monopoly). A low concentration ratio indicates that the industry is characterized by many rivals, none of which (ни один из которых) has a significant market share.
When a rival acts in a way that elicits (добивается) a counter-response (ответные действия) by other firms, rivalry intensifies (усиливается). The intensity of rivalry commonly is referred (по степени интенсивности конкуренцию обычно называют) to as being cutthroat (беспощадной), intense, moderate (умеренной), or weak, based on the firms' aggressiveness in attempting to gain an advantage (в попытках получить преимущество).
In pursuing an advantage over its rivals (стремясь одержать верх над конкурентами), a firm can choose from several competitive moves:
• Changing prices - raising or lowering prices to gain a temporary advantage (для получения временного преимущества).
• Improving product differentiation (усиление отличительных характеристик продукции) - improving features (усовершенствование характеристик), implementing innovations (внедрение инноваций) in the manufacturing process and in the product itself.
• Creatively using channels of distribution - using vertical integration or using a distribution channel that is novel (новаторский) to the industry.
The intensity of rivalry is influenced (на интенсивность конкуренции влияют) by the following industry characteristics:
1. A larger number of firms increases (усиливает) rivalry because more firms must compete for (конкурировать за) the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership.
2. Slow market growth causes (заставляет) firms to fight for market share. In a growing market, firms are able to improve revenues (увеличить выручку) simply because of the expanding market.
3. High fixed costs (постоянные издержки) result in an economy of scale effect (эффект масштаба производства) that increases rivalry. When total costs are mostly fixed costs, the firm must produce near capacity (производить почти на полной мощности) to attain (чтобы достичь) the lowest unit costs (затрат на единицу продукции). Since the firm must sell this large quantity (количество) of product, high levels of production lead to a fight for market share and results in increased rivalry.
4. High storage costs or highly perishable products (высокие затраты на хранение и скоропортящиеся товары) cause a producer to sell goods as soon as possible. If other producers are attempting to unload (пытаются сгрузить [товар]) at the same time, competition for customers intensifies.
5. Low switching costs (затраты, связанные с перепрофилированием производства) increases rivalry. When a customer can freely switch («переключиться») from one product to another there is a greater struggle to capture (увлечь) customers.
6. Low levels of product differentiation is associated with higher levels of rivalry. Brand identification (марочное обозначение), on the other hand, tends to constrain (обычно ограничивает) rivalry.
7. High exit barriers (существенные препятствия уходу [с рынка]) place a high cost on abandoning the product (обусловливают высокую стоимость отказа от [производства] продукта). The firm must compete. High exit barriers cause a firm to remain in an industry, even when the venture (предприятие) is not profitable. A common (распространенным) exit barrier is asset specificity (специфичность актива). When the plant (завод) and equipment (оборудование) required (требуемые) for manufacturing a product is highly specialized, these assets cannot easily be sold to other buyers in another industry.
8. A diversity of rivals (разнообразие конкурентов) with different cultures, histories, and philosophies make an industry unstable. Rivalry is volatile (непостоянна/неуловима) and can be intense.
9. Industry Shakeout (вытеснение мелких компаний). A growing market and the potential for high profits induce (побуждают) new firms to enter a market and incumbent (действующие фирмы) firms to increase production. A point is reached where the industry becomes crowded with competitors, and demand cannot support the new entrants (новичков) and the resulting increased supply (увеличившееся предложение). The industry may become crowded if its growth rate slows and the market becomes saturated (насыщенный), creating a situation of excess capacity (нереализованные производственные мощности) with too many goods chasing too few buyers. A shakeout ensues (происходит вытеснение), with intense competition, price wars, and company failures (терпит фиаско).
The model of pure competition implies (предполагает) that risk-adjusted (скорректированные с учетом риска) rates of return (нормы прибыли) should be constant (постоянными) across firms and industries. However, numerous (многочисленные) economic studies have affirmed (подтвердили) that different industries can sustain (поддерживать) different levels of profitability (прибыльности); part of this difference is explained by industry structure.
Michael Porter provided a framework (здесь: концепцию) that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms (преимущество перед конкурентами) can use this model to better understand the industry context (среда) in which the firm operates.
I. Rivalry
In the traditional economic model, competition among rival firms drives profits to zero (движет прибыль к нулю). But competition is not perfect and firms are not unsophisticated (простые) passive price takers (лица, соглашающиеся на определенную цену). Rather, firms strive for (стремятся к) a competitive advantage (конкурентное преимущество) over their rivals. The intensity of rivalry (конкуренции) among firms varies (варьируется) across industries, and strategic analysts are interested in these differences.
Economists measure rivalry by indicators of industry concentration (показатели концентрации промышленности). The Concentration Ratio (CR) is one such measure. The CR indicates the percent of market share (доля рынка в %) held by the four largest firms. A high concentration ratio (коэффициент) indicates that a high concentration of market share is held by the largest firms - the industry is concentrated. With only a few firms holding a large market share, the competitive landscape (конкурентная среда) is less competitive (closer to a monopoly). A low concentration ratio indicates that the industry is characterized by many rivals, none of which (ни один из которых) has a significant market share.
When a rival acts in a way that elicits (добивается) a counter-response (ответные действия) by other firms, rivalry intensifies (усиливается). The intensity of rivalry commonly is referred (по степени интенсивности конкуренцию обычно называют) to as being cutthroat (беспощадной), intense, moderate (умеренной), or weak, based on the firms' aggressiveness in attempting to gain an advantage (в попытках получить преимущество).
In pursuing an advantage over its rivals (стремясь одержать верх над конкурентами), a firm can choose from several competitive moves:
• Changing prices - raising or lowering prices to gain a temporary advantage (для получения временного преимущества).
• Improving product differentiation (усиление отличительных характеристик продукции) - improving features (усовершенствование характеристик), implementing innovations (внедрение инноваций) in the manufacturing process and in the product itself.
• Creatively using channels of distribution - using vertical integration or using a distribution channel that is novel (новаторский) to the industry.
The intensity of rivalry is influenced (на интенсивность конкуренции влияют) by the following industry characteristics:
1. A larger number of firms increases (усиливает) rivalry because more firms must compete for (конкурировать за) the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership.
2. Slow market growth causes (заставляет) firms to fight for market share. In a growing market, firms are able to improve revenues (увеличить выручку) simply because of the expanding market.
3. High fixed costs (постоянные издержки) result in an economy of scale effect (эффект масштаба производства) that increases rivalry. When total costs are mostly fixed costs, the firm must produce near capacity (производить почти на полной мощности) to attain (чтобы достичь) the lowest unit costs (затрат на единицу продукции). Since the firm must sell this large quantity (количество) of product, high levels of production lead to a fight for market share and results in increased rivalry.
4. High storage costs or highly perishable products (высокие затраты на хранение и скоропортящиеся товары) cause a producer to sell goods as soon as possible. If other producers are attempting to unload (пытаются сгрузить [товар]) at the same time, competition for customers intensifies.
5. Low switching costs (затраты, связанные с перепрофилированием производства) increases rivalry. When a customer can freely switch («переключиться») from one product to another there is a greater struggle to capture (увлечь) customers.
6. Low levels of product differentiation is associated with higher levels of rivalry. Brand identification (марочное обозначение), on the other hand, tends to constrain (обычно ограничивает) rivalry.
7. High exit barriers (существенные препятствия уходу [с рынка]) place a high cost on abandoning the product (обусловливают высокую стоимость отказа от [производства] продукта). The firm must compete. High exit barriers cause a firm to remain in an industry, even when the venture (предприятие) is not profitable. A common (распространенным) exit barrier is asset specificity (специфичность актива). When the plant (завод) and equipment (оборудование) required (требуемые) for manufacturing a product is highly specialized, these assets cannot easily be sold to other buyers in another industry.
8. A diversity of rivals (разнообразие конкурентов) with different cultures, histories, and philosophies make an industry unstable. Rivalry is volatile (непостоянна/неуловима) and can be intense.
9. Industry Shakeout (вытеснение мелких компаний). A growing market and the potential for high profits induce (побуждают) new firms to enter a market and incumbent (действующие фирмы) firms to increase production. A point is reached where the industry becomes crowded with competitors, and demand cannot support the new entrants (новичков) and the resulting increased supply (увеличившееся предложение). The industry may become crowded if its growth rate slows and the market becomes saturated (насыщенный), creating a situation of excess capacity (нереализованные производственные мощности) with too many goods chasing too few buyers. A shakeout ensues (происходит вытеснение), with intense competition, price wars, and company failures (терпит фиаско).
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