[Verse 1] When companies decide to grow and expand their reach They can merge together or one buys out each Horizontal means they're in the same line of trade Vertical connects the supply chain they've made Conglomerate brings different industries as one Three types of deals, now let's see how they're done [Chorus] Mergers and acquisitions, building corporate dreams Synergies and motivations, nothing's quite what it seems DCF and comparables help us find the price Stock or cash, friendly or hostile, every deal rolls the dice M and A, M and A, that's the corporate way [Verse 2] Why do companies want to join their corporate fate? Operating synergies make costs deflate Financial synergies boost the bottom line Diversification spreads risk by design But sometimes it's just hubris driving the CEO Ego and pride make the biggest deals flow [Chorus] Mergers and acquisitions, building corporate dreams Synergies and motivations, nothing's quite what it seems DCF and comparables help us find the price Stock or cash, friendly or hostile, every deal rolls the dice M and A, M and A, that's the corporate way [Verse 3] To value the target, we've got methods to try Discounted cash flow looks at future supply Comparable companies trading in the market today Comparable transactions show what others pay Premium paid analysis shows what buyers will spend Four valuation methods help deals transcend [Bridge] Structure matters in every deal Stock swap or cash, what's the appeal? Leveraged buyouts use debt to buy Friendly handshakes or hostile fights Tender offers and proxy rights Poison pills and staggered boards White knights coming with helping swords [Verse 4] After the deal when the papers are signed Value creation is what we hope to find But sometimes destruction is what we get instead Poor integration leaves the merger dead Post-deal performance tells the real story Success or failure, pain or glory [Chorus] Mergers and acquisitions, building corporate dreams Synergies and motivations, nothing's quite what it seems DCF and comparables help us find the price Stock or cash, friendly or hostile, every deal rolls the dice M and A, M and A, that's the corporate way [Outro] From horizontal mergers to conglomerate plays Understanding M and A pays Whether friendly or hostile, the dance is the same Welcome to the merger game
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