This PPT slide, part of the 156-slide Post Merger Integration (PMI) Change Management PowerPoint presentation, outlines 3 distinct types of mergers: Reverse Merger, Accretive Merger, and Dilutive Merger. Each type is defined with specific characteristics and examples, providing clarity on their operational mechanics.

Starting with the Reverse Merger, this approach allows a private company to enter public markets without the burdensome costs and regulatory hurdles typically associated with an Initial Public Offering (IPO). The slide notes that a private entity merges with an existing public company, often referred to as a "Shell Company." This method enables the private firm to maintain control over its management while securing a public listing. An example given is the merger of Handheld Entertainment with Vika Corp, which resulted in the formation of ZVUE in 2006. This illustrates how a reverse merger can facilitate rapid access to public capital.

Next, the Accretive Merger is described as a scenario where one company acquires another, leading to an increase in the acquiring company's earnings per share. The slide emphasizes that the target company's earnings contribute positively to the overall market value of the acquiring firm. Hewlett-Packard's acquisition of EDS in 2008 serves as a case study, highlighting that the deal was projected to be non-GAAP accretive in subsequent years. This indicates a strategic focus on enhancing financial performance through targeted acquisitions.

While the slide does not explicitly detail the Dilutive Merger, it can be inferred that this type involves a decrease in the acquiring company's earnings per share, contrasting with the accretive model. Understanding these distinctions is crucial for executives considering merger strategies, as each type presents unique implications for financial health and market positioning.

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Change Management PMI Positioning