Learning Point

  Mergers, Acquisitions & Corporate Restructuring 1. Introduction Mergers, Acquisitions, and Corporate Restructuring are major strategic financial decisions taken by firms to improve growth, profitability, competitiveness, and survival . In today’s global business environment, companies use M&A and restructuring to: Expand market share Achieve economies of scale Enter new markets Overcome financial distress 2. Mergers & Acquisitions (M&A) 2.1 Meaning Merger: Two or more companies combine to form a single new entity . Acquisition: One company purchases and controls another company. 📌 Example: If Company A absorbs Company B → Acquisition If Company A + Company B form Company C → Merger 2.2 Types of Mergers Horizontal Merger – Same industry (e.g., two banks) Vertical Merger – Supplier & buyer Conglomerate Merger – Unrelated businesses Market Ext...

Introduction to Cost–Volume–Profit (CVP) Analysis Definition Cost–Volume–Profit (CVP) Analysis is a managerial accounting technique used to study the relationship between costs , sales volume , and profit . It helps management understand how changes in cost structure, selling price, and output level affect a firm’s profit. In simple words, CVP analysis answers three basic questions: ·         How much should we sell to avoid loss? ·         How much should we sell to earn a target profit? ·         How will profit change if costs, price, or volume change? 2. Objectives of CVP Analysis The main objectives of CVP analysis are: ·         To determine the break-even point (BEP) ·         To calculate profit or loss at different levels of output ·      ...