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108-489: It is produced by Meat and Livestock Australia and includes; vealer and yearling steers and heifers purchased for slaughter, restocking or lotfeeding. Only cattle meeting the following criteria are included: Severe drought across large parts of eastern and inland Australia between 2017 and 2019, saw the national beef herd reach its lowest levels since 1990. Following this, cattle supply and market throughput has reduced which has been reflected in record high cattle prices. On

216-401: A merger is the legal consolidation of two business entities into one, whereas an acquisition occurs when one entity takes ownership of another entity's share capital , equity interests or assets . From a legal and financial point of view, both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity, and the distinction between the two

324-405: A business retain just a handful of key players that would have otherwise left. Organizations should move rapidly to re-recruit key managers. It's much easier to succeed with a team of quality players that one selects deliberately rather than try to win a game with those who randomly show up to play. Mergers and acquisitions often create brand problems, beginning with what to call the company after

432-569: A business, which accrues to both categories of stakeholders, is called the Enterprise Value (EV), whereas the value which accrues just to shareholders is the Equity Value (also called market capitalization for publicly listed companies). Enterprise Value reflects a capital structure neutral valuation and is frequently a preferred way to compare value as it is not affected by a company's, or management's, strategic decision to fund

540-614: A campaign in collaboration with Co-op Islami to promote red meat consumption by families in the United Arab Emirates . The prize of the competition consisted of four tickets to Australia and a guided tour of Australian farms and processing facilities which adhere to Halal principles . Integrity Systems Company Limited (ISC) is a public company which was registered in 2009 and is wholly owned by M&LA Ltd. This company implements quality assurance programs and provides administrative assistance to programs delivered by

648-486: A certain size. An acquisition/takeover is the purchase of one business or company by another company or other business entity. Specific acquisition targets can be identified through myriad avenues, including market research, trade expos, sent up from internal business units, or supply chain analysis. Such purchase may be of 100%, or nearly 100%, of the assets or ownership equity of the acquired entity. A consolidation/amalgamation occurs when two companies combine to form

756-556: A commercial sale. In 2020, ISC released an online declaration system which allowed for the lodgement of NVDs and other declarations required under MSA and animal health regulations. This initiative allows vendors to access and complete their declarations electronically, and aims to provide suppliers with a quick and efficient alternative to making paper declarations. ISC also administers the NLIS, which provides background information on all Australian livestock. This system has established

864-473: A function of their acquisition activity. Therefore, additional motives for merger and acquisition that may not add shareholder value include: The M&A process itself is a multifaceted which depends upon the type of merging companies. The M&A process results in the restructuring of a business's purpose, corporate governance and brand identity. An arm's length merger is a merger: ″The two elements are complementary and not substitutes. The first element

972-413: A greater return to the meat and livestock industries at large was also raised in the report. The corporate group was encouraged to become less financially conservative and fund projects that did carry more financial risk than small-scale initiatives, however has the potential to provide significant economic benefits for the industry. Five overarching recommendations are offered in the review, regarding

1080-433: A larger and/or longer-established company and retain the name of the latter for the post-acquisition combined entity. This is known as a reverse takeover . Another type of acquisition is the reverse merger , a form of transaction that enables a private company to be publicly listed in a relatively short time frame. A reverse merger is a type of merger where a privately held company, typically one with promising prospects and

1188-426: A merger or acquisition transaction can range from political to tactical. Ego can drive choice just as well as rational factors such as brand value and costs involved with changing brands. Beyond the bigger issue of what to call the company after the transaction comes the ongoing detailed choices about what divisional, product and service brands to keep. The detailed decisions about the brand portfolio are covered under

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1296-425: A national database which provides information on the residency of livestock and the other animals it has come in contact with. Where a vendor holds livestock that could potentially be a threat to buyers and their interests, ISC can assign one of the nine NLIS Early Warning statuses to the seller's PIC. These statuses must indicate the reason for the assignment of such a status, which is generally concerns surrounding

1404-444: A need for financing, acquires a publicly listed shell company that has few assets and no significant business operations. The combined evidence suggests that the shareholders of acquired firms realize significant positive "abnormal returns," while shareholders of the acquiring company are most likely to experience a negative wealth effect. Most studies indicate that M&A transactions have a positive net effect, with investors in both

1512-451: A new enterprise altogether, and neither of the previous companies remains independently owned. Acquisitions are divided into "private" and "public" acquisitions, depending on whether the acquiree or merging company (also termed a target ) is or is not listed on a public stock market . Some public companies rely on acquisitions as an important value creation strategy. An additional dimension or categorization consists of whether an acquisition

1620-566: A part of the 'You Never Lamb Alone' series, which strived to encourage inclusivity and multiculturalism within Australia. The advertisement depicts Indigenous Australians welcoming the First Fleet and other migrants to Australia, for a beachside event featuring numerous icons from various cultures, including German beer and Chinese Fireworks . Despite the controversy surrounding the 'You Never Lamb Alone' initiative, M&LA won

1728-434: A situation where one company splits into two, generating a second company which may or may not become separately listed on a stock exchange. As per knowledge-based views, firms can generate greater values through the retention of knowledge-based resources which they generate and integrate. Extracting technological benefits during and after acquisition is an ever-challenging issue because of organizational differences. Based on

1836-550: A special committee of independent directors; and 2) conditioned on an affirmative vote of a majority of the minority stockholders, the business judgment standard of review should presumptively apply, and any plaintiff ought to have to plead particularized facts that, if true, support an inference that, despite the facially fair process, the merger was tainted because of fiduciary wrongdoing.″ A Strategic merger usually refers to long-term strategic holding of target (Acquired) firm. This type of M&A process aims at creating synergies in

1944-469: A standard for the quality of Australian red meat in domestic and international markets. The Eastern Young Cattle Indicator (EYCI) is a market indicator produced by M&LA. It provides a weekly moving average of the number of young cattle sold across the Eastern states of Australia; Queensland , New South Wales and Victoria . The price and weight of the carcasses sold are employed to calculate

2052-468: A total value of US$ 2,164.4 bil. Some of the largest mergers of equals took place during the dot-com bubble of the late 1990s and in the year 2000: AOL and Time Warner (US$ 164 bil.), SmithKline Beecham and Glaxo Wellcome (US$ 75 bil.), Citicorp and Travelers Group (US$ 72 bil.). More recent examples this type of combinations are DuPont and Dow Chemical (US$ 62 bil.) and Praxair and Linde (US$ 35 bil.). An analysis of 1,600 companies across industries revealed

2160-493: A video series which aim to educate students on the environmental impact of red meat production. Under the 'Be Your Greatest Virtual Classroom' program, M&LA has established partnerships with the Australian Paralympic and Olympic teams, that will compete in the 2021 Tokyo Olympic Games . Students have the opportunity to interact with Australian athletes during a live-streamed question time and discuss

2268-456: Is friendly or hostile . Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions were unsuccessful. "Serial acquirers" appear to be more successful with M&A than companies who make acquisitions only occasionally (see Douma & Schreuder, 2013, chapter 13). The new forms of buy out created since the crisis are based on serial type acquisitions known as an ECO Buyout which

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2376-630: Is a stub . You can help Misplaced Pages by expanding it . Meat %26 Livestock Australia Meat & Livestock Australia ( M&LA ) is an independent company which regulates standards for meat and livestock management in Australian and international markets. Headquartered in North Sydney , Australia ; M&LA works closely with the Australian government , and the meat and livestock industries. M&LA has numerous roles across

2484-478: Is a co-community ownership buy out and the new generation buy outs of the MIBO (Management Involved or Management & Institution Buy Out) and MEIBO (Management & Employee Involved Buy Out). Whether a purchase is perceived as being "friendly" or "hostile" depends significantly on how the proposed acquisition is communicated to and perceived by the target company's board of directors, employees, and shareholders. It

2592-418: Is a significant contributor to climate change. In Australia, these industries are collectively the third-largest emitter of greenhouse gases and are responsible for 56% of all methane emissions . M&LA has funded and participated in projects which aim to address the environmental impact of livestock production. This program was a research and development initiative conducted by M&LA, CSRIO and

2700-426: Is a triangular merger, where the target company merges with a shell company wholly owned by the buyer, thus becoming a subsidiary of the buyer. In a "forward triangular merger ", the target company merges into the subsidiary, with the subsidiary as the surviving company of the merger; a "reverse triangular merger" is similar except that the subsidiary merges into the target company, with the target company surviving

2808-470: Is a voluntary program promoted by M&LA. The system provides consumers with simplified information on the eating quality of Australian red meat and aims to improve consumer confidence in markets. These standards provide an indication of beef quality to cattle markets, which subsequently influence prices. MSA relies on data from red meat consumers and examines numerous processing systems, ageing periods and management processes to provide an indication of

2916-425: Is between two competitors in the same industry. A vertical merger occurs when two firms combine across the value chain, such as when a firm buys a former supplier (backward integration) or a former customer (forward integration). When there is no strategic relatedness between an acquiring firm and its target, this is called a conglomerate merger (Douma & Schreuder, 2013). The form of merger most often employed

3024-399: Is combined into another entity by operation of the corporate law statute(s) of the jurisdiction of the merging entities. In a transaction structured as a merger or an equity purchase, the buyer acquires all of the assets and liabilities of the acquired entity. In a transaction structured as an asset purchase, the buyer and seller agree on which assets and liabilities the buyer will acquire from

3132-425: Is complete, the parties may proceed to draw up a definitive agreement, known as a "merger agreement", "share purchase agreement," or "asset purchase agreement" depending on the structure of the transaction. Such contracts are typically 80 to 100 pages long and focus on five key types of terms: Following the closing of a deal, adjustments may be made to some of the provisions outlined in the purchase agreement, such as

3240-426: Is important because the directors have the capability to act as effective and active bargaining agents, which disaggregated stockholders do not. But, because bargaining agents are not always effective or faithful, the second element is critical, because it gives the minority stockholders the opportunity to reject their agents' work. Therefore, when a merger with a controlling stockholder was: 1) negotiated and approved by

3348-569: Is limited by guarantee and is wholly owned by M&LA Ltd. Established in 1998, MDC is funded by the Australian Federal Government and voluntary contributions by M&LA partners, including Australian universities and breeding companies. Under the Australian Meat and Livestock Industry Act 1997 , MDC was declared to be an "approved donor body" in 1998. This declaration made MDC eligible to receive funding by

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3456-412: Is normal for M&A deal communications to take place in a so-called "confidentiality bubble," wherein the flow of information is restricted pursuant to confidentiality agreements. In the case of a friendly transaction, the companies cooperate in negotiations; in the case of a hostile deal, the board and/or management of the target is unwilling to be bought or the target's board has no prior knowledge of

3564-725: Is not always clear. Most countries require mergers and acquisitions to comply with antitrust or competition law . In the United States , for example, the Clayton Act outlaws any merger or acquisition that may "substantially lessen competition" or "tend to create a monopoly ", and the Hart–Scott–Rodino Act requires notifying the U.S. Department of Justice 's Antitrust Division and the Federal Trade Commission about any merger or acquisition over

3672-415: Is possible only when resources are exchanged and managed without affecting their independence. A corporate acquisition can be structured legally as either an "asset purchase" in which the seller sells business assets and liabilities to the buyer, an "equity purchase" in which the buyer purchases equity interests in a target company from one or more selling shareholders or a "merger" in which one legal entity

3780-464: Is provided by full-service investment banks- who often advise and handle the biggest deals in the world (called bulge bracket ) - and specialist M&A firms, who provide M&A only advisory, generally to mid-market, select industries and SBEs. Highly focused and specialized M&A advice investment banks are called boutique investment banks . The dominant rationale used to explain M&;A activity

3888-487: Is that acquiring firms seek improved financial performance or reduce risk. The following motives are considered to improve financial performance or reduce risk: Megadeals—deals of at least one $ 1 billion in size—tend to fall into four discrete categories: consolidation, capabilities extension, technology-driven market transformation, and going private. On average and across the most commonly studied variables, acquiring firms' financial performance does not positively change as

3996-543: Is the parent company of two subsidiaries that have diverse roles in the meat and livestock industry. The Integrity System Company (ISC) and the MLA Donor Company (MDC) are wholly owned subsidiaries of M&LA. Numerous studies into Australia's livestock production and marketing are funded or operated by M&LA. The corporate group also participates in environmental initiatives alongside government authorities and other research bodies, which aim to address

4104-559: The Australian Bureau of Statistics to gather data on red meat consumers, which informs the marketing initiatives and programs implemented by M&LA. As a research body, M&LA releases indicators and supports standards which aim to simplify complex market functions and inform consumers in the meat and livestock markets. The market standards endorsed by M&LA indicate the minimum meat and livestock requirements producers should aim to meet in Australia. It also provides

4212-534: The Hudson's Bay Company merged with the rival North West Company . The Great Merger Movement was a predominantly U.S. business phenomenon that happened from 1895 to 1905. During this time, small firms with little market share consolidated with similar firms to form large, powerful institutions that dominated their markets, such as the Standard Oil Company , which at its height controlled nearly 90% of

4320-544: The contribution of the livestock industry to climate change in Australia . In its research and data analysis capacity, M&LA generates the Eastern Young Cattle Indicator (EYCI) and supports the implementation of Meat Standards Australia (MSA) in the Australian meat industry. M&LA also conducts educational programs regarding the production and consumption of red meat. Statutory obligations which have been imposed upon M&LA by

4428-440: The financial , public and research sectors. The M&LA corporate group conducts research and offers marketing services to meat producers, government bodies and market analysts alike. Forums and events are also run by M&LA aim to provide producers with the opportunity to engage with other participants in the supply chain . The M&LA corporate group is led by Meat and Livestock Limited (M&LA Ltd.), which

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4536-464: The managing director of M&LA, commented on the cancellation: "large events such as Red Meat are just not feasible in the current environment and so the only sensible course of action was to cancel for 2020." Despite this cancellation, the M&LA Annual General Meeting (AGM) for 2020 was projected to be held online. In 2021, MLA launched a provocative advertising campaign, created by The Monkeys , part of Accenture Song, making reference to

4644-460: The privatisation of these government bodies in 1998. The M&LA corporate group was made responsible for the research and development functions of AMLC and the MRC goal to providing production support. Established in 1998, Meat and Livestock Limited (M&LA Ltd.) is an unlisted public company limited by guarantee . M&LA Ltd. consists of 333 employees as of 2020 and receives funding in

4752-481: The revenue of the M&LA corporate group. In the 2019–20 financial year , M&LA produced an overall revenue of A$ 269.7 million. M&LA experienced a 0.1% drop in revenue compared to the 2018–19 financial year, in which the corporate group accumulated a total revenue of A$ 269.9 million. The M&LA group was created following the merger of Australian Meat and Livestock Corporation (AMLC) and Meat Research Corporation (MRC) which allowed for

4860-565: The 28th of August, 2021 the EYCI recorded its highest price at 1,031.52¢/kg cwt. While the EYCI does not reflect each eastern state cattle market, it provides a comprehensive indicator of the underlying beef supply and demand trends. In July 2015, Meat and Livestock Australia developed the Western Young Cattle Indicator as an equivalent of the EYCI for West Australian cattle producers. This agriculture article

4968-656: The Australian Department of Agriculture, Water and the Environment . Commencing in 2012, the four-year program aimed to create environmentally conscious business plans for Australian livestock producers, which allow for the reduction of methane emissions produced by cattle and improve profit margins . Between 2012 and 2015, M&LA provided A$ 1,350,000 under the National Livestock Methane Program (NLMP). This funding

5076-467: The Australian federal government, the performance of the M&LA corporate group is regularly monitored through mandated independent reviews. The Australian Federal government has imposed reviewing regulations which aim to improve the transparency of M&LA as an authority. These measures also strive to promote efficiency in the execution of its initiatives and programs. In 2020, ACIL Allen Consulting released an independent review which analysed

5184-480: The Australian government, require the corporate group to undergo regular independent reviews of its performance and efficiency. Marketing campaigns are produced by M&LA to promote red meat consumption; however, many advertisements have been subject to criticism, regarding cultural appropriation and discrimination allegations. The Coronavirus (COVID-19) outbreak has disrupted economic markets and production globally. The COVID-19 pandemic has also impacted

5292-410: The Australian population in a comedic manner; however, this approach has attracted criticism in regards to the representation of Australia's cultural identity . 'Operation Boomerang' was a 2016 advertising initiative conducted by M&LA under the 'We Love Our Lamb' campaign, to promote red meat consumption on Australia Day . It contained a scene depicting a member of a SWAT team breaking into

5400-637: The BeefLinks partnership between the University of Western Australia and MDC conducts research on the red meat supply chain in Western Australia . The partnership also strives to develop innovative technologies to assist various participants in the red meat industry, including producers and vendors. M&LA aims to inform and advise producers, consumers and the Australian federal government on market conditions. M&LA collaborates with

5508-465: The COVID-19 effect on Australian border restrictions, titled Make Lamb, Not Walls. The campaign took on a satirical approach, referencing politicians such as Scott Morrison , Daniel Andrews and Gladys Berejiklian . The campaign was reported on by major national and international news sources such as The New York Times and The Sydney Morning Herald . It increased sales by 16.8%. In response to

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5616-500: The COVID-19 outbreak, M&LA has developed online schemes to educate the Australian public on the importance of red meat consumption. M&LA introduced three interactive initiatives for Australian primary schools during the pandemic, 'Your Expert Classroom', 'Be Your Greatest Virtual Classroom' and 'Get Kids Cooking'. These schemes are free to access and consist of educational videos and interactive cooking classes for students and teachers alike. 'Your Expert Classroom' consists of

5724-554: The COVID-19 pandemic. The findings from the study indicated a continued increase in consumer demand for red meat in China, with demand for Australian beef increasing by 43% in Chinese markets during the pandemic. These studies seek to improve producer confidence and provide data for market analysts during the COVID-19 pandemic. Mergers and acquisitions Mergers and acquisitions ( M&A ) are business transactions in which

5832-511: The Code of Ethics. M&LA was ordered to remove the advertisement from all its social media platforms. The COVID-19 outbreak has disrupted many of the initiatives managed by M&LA, which have consequently been cancelled or indefinitely postponed. M&LA has introduced online educational programs and social forums, which aim to educate the Australia population. Research and data analysis conducted by M&LA has also been interrupted by

5940-696: The Commonwealth Government; the voluntary funds contributed to MDC for research and development is matched by the federal government. In 2016, the MDC received A$ 44 Million from the government in research and development grants. The Federal government is projected to grant A$ 94.628 million in 2020–21 to MDC for meat research purposes. MDC aims to encourage independent research and innovation in Australian red meat markets by providing financial assistance for independent companies and institutions conducting their own research. Launched in 2020,

6048-604: The Communication Award and the People's Choice award at the 2016 Australian Multicultural Marketing Awards, for this campaign. The 2017 'You Never Lamb Alone' campaign released by M&LA was criticised for allegedly inappropriate depictions of religious figures. The advertisement contained Hindu god Ganesha and Buddhist figure Gautama Buddha consuming red meat despite the vegetarian nature of both figures. The Universal Society of Hinduism sought to have

6156-404: The EYCI, which is exhibited in cents per kilogram . M&LA releases this indicator in conjunction with data analysis regarding its movement and market conditions, which is also conducted by M&LA. The EYCI aims to inform market commentary in the Australian meat market and provides producers with an indication of current market prices. The Meat Standards Australia (MSA) grading system

6264-800: The Great Merger Movement were able to keep their dominance in their respective sectors through 1929, and in some cases today, due to growing technological advances of their products, patents , and brand recognition by their customers. There were also other companies that held the greatest market share in 1905 but at the same time did not have the competitive advantages of the companies like DuPont and General Electric . These companies such as International Paper and American Chicle saw their market share decrease significantly by 1929 as smaller competitors joined forces with each other and provided much more competition. The companies that merged were mass producers of homogeneous goods that could exploit

6372-674: The M&LA group. These include the National Vendor Declarations initiative (NVDs) and the National Livestock Identification System . The NVDs system outlines requirements Australian livestock providers are required to adhere to. It prompts producers to establish a property biosecurity plan for every Property Identification Code (PIC) under their name. Providers must have completed an NVD declaration to legally transfer livestock across properties or to move livestock after

6480-406: The M&LA organisation. The 'Australian Beef. The Greatest!' marketing campaign which was launched in 2017, strives to increase consumer engagement with the red meat industry and promote consumption by providing recipes which incorporate beef. This company is also involved in encouraging international consumption of red meat through promotional competitions. In 2005, M&LA Ltd. launched

6588-450: The acquiring company's stock, issued to the shareholders of the acquired company at a given ratio proportional to the valuation of the latter. They receive stock in the company that is purchasing the smaller subsidiary. There are some elements to think about when choosing the form of payment. When submitting an offer, the acquiring firm should consider other potential bidders and think strategically. The form of payment might be decisive for

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6696-512: The acquisition so the team can focus on projects for their new employer). In recent years, these types of acquisitions have become common in the technology industry, where major web companies such as Facebook , Twitter , and Yahoo! have frequently used talent acquisitions to add expertise in particular areas to their workforces. Merger of equals is often a combination of companies of a similar size. Since 1990, there have been more than 625 M&A transactions announced as mergers of equals with

6804-514: The advertisement also promoted violence against vegans. The ASB board held that the use of 'boomerang' by M&LA was not culturally insensitive towards Aboriginal Australians , referencing the colloquial definition of the word in the Macquarie Dictionary which encompasses the return of a person or object. The ASB board also ruled in favour of M&LA in regards to the discrimination of vegans, stating that: "[the] torching of

6912-566: The advertisement banned by the ASB, due to the use of Ganesha for commercial purposes. The society's president, Rajan Zed, commented on the request of removal sent to the ASB: "Lord Ganesha is highly revered in Hinduism...[and is] not to be used in selling lamb meat for mercantile greed. Moreover, linking Lord Ganesha with meat is very disrespectful and highly inappropriate" A review of this campaign

7020-514: The assets and liabilities that pertain solely to the unit being sold, determining whether the unit relies on services from other parts of the seller's organization, transferring employees, moving permits and licenses, and safeguarding against potential competition from the seller in the same business sector after the transaction is completed. From an economic point of view, business combinations can also be classified as horizontal, vertical and conglomerate mergers (or acquisitions). A horizontal merger

7128-431: The benefits of red meat and encourage more domestic consumption. However, numerous marketing campaigns conducted by M&LA have also been condemned over claims of cultural insensitivity , and satirisation of veganism and vegetarianism . The 'You Never Lamb Alone' advertisement series is produced by M&LA as a part of its ' We Love Our Lamb ' marketing campaign. The initiative aims to promote lamb consumption by

7236-446: The business either through debt, equity, or a portion of both. Five common ways to "triangulate" the enterprise value of a business are: Professionals who value businesses generally do not use just one method, but a combination. Valuations implied using these methodologies can prove different to a company's current trading valuation. For public companies, the market based enterprise value and equity value can be calculated by referring to

7344-482: The buyer and target companies seeing positive returns. This suggests that M&A creates economic value, likely by transferring assets to more efficient management teams who can better utilize them. (See Douma & Schreuder, 2013, chapter 13). There are also a variety of structures used in securing control over the assets of a company, which have different tax and regulatory implications: The terms " demerger ", " spin-off " and "spin-out" are sometimes used to indicate

7452-469: The buyer. Hence, the analysis should be done from the acquiring firm's point of view. Synergy-creating investments are started by the choice of the acquirer, and therefore they are not obligatory, making them essentially real options . To include this real options aspect into analysis of acquisition targets is one interesting issue that has been studied lately. See also contingent value rights . Mergers are generally differentiated from acquisitions partly by

7560-462: The company's current account), liquidity ratios might decrease. On the other hand, in a pure stock for stock transaction (financed from the issuance of new shares), the company might show lower profitability ratios (e.g. ROA). However, economic dilution must prevail towards accounting dilution when making the choice. The form of payment and financing options are tightly linked. If the buyer pays cash, there are three main financing options: M&A advice

7668-469: The company's share price and components on its balance sheet. The valuation methods described above represent ways to determine value of a company independently from how the market currently, or historically, has determined value based on the price of its outstanding securities. Most often value is expressed in a Letter of Opinion of Value (LOV) when the business is being valued informally. Formal valuation reports generally get more detailed and expensive as

7776-420: The content analysis of seven interviews, the authors concluded the following components for their grounded model of acquisition: An increase in acquisitions in the global business environment requires enterprises to evaluate the key stake holders of acquisitions very carefully before implementation. It is imperative for the acquirer to understand this relationship and apply it to its advantage. Employee retention

7884-430: The control of the buyer modified. If the issuance of shares is necessary, shareholders of the acquiring company might prevent such capital increase at the general meeting of shareholders. The risk is removed with a cash transaction. Then, the balance sheet of the buyer will be modified and the decision maker should take into account the effects on the reported financial results. For example, in a pure cash deal (financed from

7992-420: The deficient understanding of the red meat industry in urban communities compared to rural suburbs. The COVID-19 outbreak has made collecting data and statistics from local and global markets more difficult. Due to COVID-19 restrictions and reduced access to data, M&LA temporarily ceased production of the EYCI between March and June 2020. Following the easing of COVID-19 restrictions throughout Australia,

8100-452: The differing levy rates which apply to meat and livestock, including cattle , pigs and chickens . As of 2020, 47,500 Australian meat producers held a majority of shareholdings in M&LA, which has given the company the status of being producer-owned. Livestock exporters and processors also fund M&LA Ltd. through the levies paid under contract. M&LA Ltd. primarily conducts research and offers marketing services on behalf of

8208-405: The efficiencies of large volume production. In addition, many of these mergers were capital-intensive. Due to high fixed costs, when demand fell, these newly merged companies had an incentive to maintain output and reduce prices. However more often than not mergers were "quick mergers". These "quick mergers" involved mergers of companies with unrelated technology and different management. As a result,

8316-468: The efficiency gains associated with mergers were not present. The new and bigger company would actually face higher costs than competitors because of these technological and managerial differences. Thus, the mergers were not done to see large efficiency gains, they were in fact done because that was the trend at the time. Companies which had specific fine products, like fine writing paper, earned their profits on high margin rather than volume and took no part in

8424-525: The federal government in order to receive government funding. The independent review conducted by ACIL Allen Consulting inquired into the efficiency, operations and overall performance of M&LA as an institution in the Australian red meat industry over the past five years. The role and performance of the subsidiary companies within the M&LA group were also reviewed. The review outlined some functions and practices exercised by M&LA which require improvement and proposed recommendations to enhance

8532-523: The form of transaction levies. M&LA has been declared to be an 'industry body' under the Australian Meat and Live‑stock Industry Act 1997 , which allows M&LA to collect such levies. A levy fee applies to animals or carcasses sold domestically or internationally by Australian producers under the Primary Industries (Excise) Levies Act 1999 . This act outlines the circumstances in which producers are required to pay levies and provides

8640-442: The function of the subsidiaries in the M&LA corporate group. These included establishing a long-term policy direction, ensuring adequate funding for ISC and improving the transparency of MDC. The findings of this report are projected to be considered by the Australian government in the 2020 renewal of the statutory funding agreement it holds with M&LA. The marketing services offered by M&LA aim to increase awareness of

8748-415: The functions and activities of M&LA. The review analysed the performance and efficiency of M&LA and the company's subsidiaries between 2016 and 2020. ACIL Allen Consulting administered this review as required by the statutory funding agreement between M&LA and the Australian government. Established in 2016, this agreement requires M&LA to adhere to these transparency requirements prescribed by

8856-473: The global oil refinery industry. It is estimated that more than 1,800 of these firms disappeared into consolidations, many of which acquired substantial shares of the markets in which they operated. The vehicle used were so-called trusts . In 1900 the value of firms acquired in mergers was 20% of GDP . In 1990 the value was only 3% and from 1998 to 2000 it was around 10–11% of GDP. Companies such as DuPont , U.S. Steel , and General Electric that merged during

8964-570: The homes of vegans and employing a flamethrower to burn their food. The advertisement accumulated over 600 complaints from the Australian public to the Advertising Standards Bureau (ASB) for an alleged breach of the Australian Association of National Advertisers ' (AANA) Code of Ethics . The complaints claimed M&LA improperly used the term ' boomerang ' due to its indigenous connotations and that

9072-440: The long run by increased market share, broad customer base, and corporate strength of business. A strategic acquirer may also be willing to pay a premium offer to target firm in the outlook of the synergy value created after M&A process. The term "acqui-hire" is used to refer to acquisitions where the acquiring company seeks to obtain the target company's talent, rather than their products (which are often discontinued as part of

9180-531: The market indicator returned in the last week of June 2020. M&LA aims to continue providing producers and market analysts with data on international market conditions by implementing studies in foreign markets, which are of interest to Australian producers in terms of meat export volumes. In 2018–19, Australia exported 72% of all beef and veal production, and China accounted for 24% of Australia's beef exports in 2019. M&LA conducted consumer research in China to analyse consumer behaviour and growth trends during

9288-524: The meat's eating quality. These include: All these facets are incorporated to give the red meat a grade under the MSA system. The MSA adheres to international standards and its implementation in Australia is overseen by M&LA. The system has been trialled in numerous other countries and has been shown to have varying degrees of effectiveness in European countries. The production of meat and livestock

9396-440: The merger. Mergers, asset purchases and equity purchases are each taxed differently, and the most beneficial structure for tax purposes is highly situation-dependent. Under the U.S. Internal Revenue Code , a forward triangular merger is taxed as if the target company sold its assets to the shell company and then liquidated, them whereas a reverse triangular merger is taxed as if the target company's shareholders sold their stock in

9504-429: The most value from a business assessment, objectives should be clearly defined and the right resources should be chosen to conduct the assessment in the available timeframe. As synergy plays a large role in the valuation of acquisitions, it is paramount to get the value of synergies right; as briefly alluded to re DCF valuations. Synergies are different from the "sales price" valuation of the firm, as they will accrue to

9612-417: The offer. Hostile acquisitions can, and often do, ultimately become "friendly" as the acquirer secures endorsement of the transaction from the board of the acquiree company. This usually requires an improvement in the terms of the offer and/or through negotiation. "Acquisition" usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of

9720-431: The ownership of companies , business organizations , or their operating units are transferred to or consolidated with another company or business organization. This could happen through direct absorption, a merger, a tender offer or a hostile takeover. As an aspect of strategic management , M&A can allow enterprises to grow or downsize , and change the nature of their business or competitive position. Technically,

9828-439: The pandemic; however, analysis of global markets has been undertaken by M&LA to provide information on conditions in the meat and livestock industries. M&LA aims to directly support producers through the COVID-19 pandemic by providing accessible resources regarding COVID-19 restrictions and mental health support. In 2020, the annual "Red Meat" event which is hosted by M&LA was cancelled due to COVID-19. Jason Strong,

9936-567: The performance of the authority. ACIL Allen Consulting concluded that M&LA was a large and complex authority, with numerous roles at all stages in the meat and livestock supply chains. The report indicates that M&LA has improved correspondence with shareholders and provided enhanced assistance to the Federal Government in the negotiation of trade agreements within the review period. The failure of M&LA to engage in major research and development projects that would provide

10044-478: The possibility of the livestock being exposed to a disease that could make it unsafe for human consumption. Notification of this status is then available to buyers with an NLIS account, which grants users access to the NLIS database. This system commenced in January 2020 and aims to support meat and livestock consumers by improving transparency in the domestic livestock market. MLA Donor Company Limited (MDC)

10152-555: The potential benefits of incorporating red meat into their diets . M&LA strives to encourage the incorporation of red meat in the diets of Australian students through the 'Get Kids Cooking' program. An interactive cooking lesson at an Australian Royal Show is offered to students, but due to COVID-19 restrictions, M&LA replaced this class with a step-by-step cooking tutorial video which can be followed by students at home. M&LA targets these programs predominantly at schools in metropolitan areas of Australia, to address

10260-482: The production and processing of meat, which has been scrutinised for being too ambitious due to the magnitude of emissions the industries are responsible for. Detailed and consistent policy, alongside strong incentives for producers, is considered vital on behalf of M&LA to achieve carbon neutrality within this restricted time period. Under this initiative, M&LA has researched the use of numerous macroalgae species in feed for beef cattle. The findings from

10368-446: The purchase price. These adjustments are subject to enforceability issues in certain situations. Alternatively, certain transactions use the 'locked box' approach, where the purchase price is fixed at signing and based on the seller's equity value at a pre-signing date and an interest charge. The assets of a business are pledged to two categories of stakeholders: equity owners and owners of the business' outstanding debt. The core value of

10476-446: The rewards for M&A activity were greater for consumer products companies than the average company. For the period 2000–2010, consumer products companies turned in an average annual TSR of 7.4%, while the average for all companies was 4.8%. Given that the cost of replacing an executive can run over 100% of his or her annual salary, any investment of time and energy in re-recruitment will likely pay for itself many times over if it helps

10584-448: The seller. Asset purchases are common in technology transactions in which the buyer is most interested in particular intellectual property but does not want to acquire liabilities or other contractual relationships. An asset purchase structure may also be used when the buyer wishes to buy a particular division or unit of a company that is not a separate legal entity. Divestitures present a variety of unique challenges, such as identifying

10692-442: The seller. With pure cash deals, there is no doubt on the real value of the bid (without considering an eventual earnout). The contingency of the share payment is indeed removed. Thus, a cash offer preempts competitors better than securities. Taxes are a second element to consider and should be evaluated with the counsel of competent tax and accounting advisers. Third, with a share deal the buyer's capital structure might be affected and

10800-414: The size of a company increases, but this is not always the case as the nature of the business and the industry it is operating in can influence the complexity of the valuation task. Objectively evaluating the historical and prospective performance of a business is a challenge faced by many. Generally, parties rely on independent third parties to conduct due diligence studies or business assessments. To yield

10908-418: The study orchestrated in conjunction with CSIRO and James Cook University promoted the inclusion of Asparagopsis , which is a species of red algae , as a supplement in cattle feed. Asparagopsis was found to be the most effective red algae in the study at reducing the methane emitted by cattle, reducing emissions by 80% when Asparagopsis accounted for 3% of the cattle's feed. As MDC receives funding from

11016-490: The target company to the buyer. The documentation of an M&A transaction often begins with a letter of intent . The letter of intent generally does not bind the parties to commit to a transaction, but may bind the parties to confidentiality and exclusivity obligations so that the transaction can be considered through a due diligence process involving lawyers, accountants, tax advisors, and other professionals, as well as business people from both sides. After due diligence

11124-658: The topic brand architecture . Most histories of M&A begin in the late 19th century United States. However, mergers coincide historically with the existence of companies. In 1708, for example, the East India Company merged with an erstwhile competitor to restore its monopoly over the Indian trade. In 1784, the Italian Monte dei Paschi and Monte Pio banks were united as the Monti Reuniti. In 1821,

11232-547: The transaction and going down into detail about what to do about overlapping and competing product brands. Decisions about what brand equity to write off are not inconsequential. And, given the ability for the right brand choices to drive preference and earn a price premium, the future success of a merger or acquisition depends on making wise brand choices. Brand decision-makers essentially can choose from four different approaches to dealing with naming issues, each with specific pros and cons: The factors influencing brand decisions in

11340-463: The vegan food is an exaggerated and humorous response to the food that is not lamb – a portrayal of the food being less preferable to the advertised product, and not inciting hatred towards people who are vegan." ASB effectively dismissed all claims of a breach of the AANA Code of Ethics and M&LA was permitted to continue using this advertisement. In 2016 M&LA also released a campaign as

11448-406: The way in which they are financed and partly by the relative size of the companies. Various methods of financing an M&A deal exist: Payment by cash. Such transactions are usually termed acquisitions rather than mergers because the shareholders of the target company are removed from the picture and the target comes under the (indirect) control of the bidder's shareholders. Payment in the form of

11556-511: Was also conducted by the ASB board, in response to criticism by the Universal Society of Hinduism and the additional 200 complaints received from the Australian public. The ASB initially determined that M&LA was not in breach of the AANA Code of Ethics, citing the campaign's humorous intention to promote religious inclusivity and multiculturalism. However, review of this decision found M&LA to be in breach of Section 2.1 of

11664-704: Was directed towards research into new technologies and management strategies to reduce methane emissions in livestock production. The implementation of production and management techniques encouraged under NLMP was found to assist in the reduction of beef cattle methane emissions by 24% nationally in 2015. M&LA led the 2017 "CN30" goal of the meat and livestock industries, which aims to make both industries carbon-neutral by 2030. M&LA aims to support this goal by funding research into carbon storage systems and formulating environmental management strategies which can be implemented by livestock producers. The "CN30" goal requires that there are no net emissions made in

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