LIST OF CONTENTS PREAMBLE 5 ÖNSÖZ 7 LIST OF CONTENTS . 9 LIST OF TABLES . 13 LIST OF FIGURES . 13 LIST OF ABBREVIATIONS. 15 INTRODUCTION 17 CHAPTER I GROWTH IN COMPANIES AS A RESULT OF GLOBALIZATION AND CROSS BORDER MERGERS AND ACQUISITIONS 1.1. THE GROWTH REASON OF THE COMPANIES19 1.2. TYPES OF GROWTH STRATEGIES OF THE COMPANIES20 1.2.1. Organic Growth 20 1.2.2. Inorganic Growth 21 1.3. CROSS - BORDER M & A 23 1.4. DEFINITION OF MERGERS AND ACQUISITIONS AND HISTORICAL WAVES24 1.4.1. Acquisition 24 1.4.2. Merger 25 1.4.3. Differences Between Mergers and Acquisitions 26 1.4.4. The Types of Mergers and Acquisitions 27 1.4.4.1. Vertical Mergers and Acquisitions . 27 1.4.4.2. Horizontal Mergers and Acquisitions . 28 1.4.4.3. Conglomerate Merger and Acquisition 30 1.5. PURCHASING METHODS OF MERGERS AND ACQUISITIONS .31 1.5.1. Merger and Acquisition By Agreement 32 1.5.2. Merger and Acquisition By one-side Desire . 32 1.5.3. Leveraged Buy-out 33 1.6. THE HISTORY OF MERGER AND ACQUISITION35 1.6.1. First Wave (1890-1907) 38 10 List of Contents 1.6.2. Second Wave (1916-1929) . 39 1.6.3. Third wave (1965-1972) . 40 1.6.4. Fourth Wave (1981-1990) 40 1.6.5. Fifth Wave (1993-2000) 42 1.6.6. Sixth Wave (2002-2007) . 43 1.6.7. Seventh Wave (2011-……) 43 1.7. COMPETITION AUTHORITY AND THE LATEST STATUS MERGERS AND ACQUISITIONS IN TURKEY .44 CHAPTER II THEORETICAL APPROACH TO MERGERS AND ACQUISITIONS 2.1. THE REASONS THAT ENCOURAGE COMPANIES TO MERGERS AND ACQUISITIONS TRANSACTIONS .51 2.1.1. Synergy. 52 2.1.1.1. Operational Synergy. 53 2.1.1.2. Financial Synergy . 53 2.1.2. Tax Efficiencies . 54 2.1.3. Economy of Scale . 55 2.1.4. Increasing the Competitive Power . 56 2.1.5. Financial Reasons . 57 2.1.6. Exchange Rates. 58 2.1.7. Psychological Reasons 59 2.1.8. Technological Alignment 60 2.1.9. Managerial Purposes 61 2.2. SUCCESS AND FAILURE ELEMENTS IN MERGER & ACQUISITIONS61 2.2.1. The Reason of Failure. 61 2.2.1.1. Management Errors . 62 2.2.1.2. Hubris Effect. 63 2.2.1.3. Psychological Factors . 63 2.2.1.4. Overpaying. 64 2.2.1.5. Integration Process 64 2.2.1.6. Cultural Differences . 65 2.2.2. Success Factors. 67 List of Contents 11 2.2.2.1. Speed of Integration. 68 2.2.2.2. Leadership 70 2.2.2.3. Post-merger integration team 71 2.2.2.4. Communication 72 2.2.2.5. Managing Cultural Differences. 74 2.2.2.6. Human Resources Management 76 2.3. THE PROCESS OF MERGER AND ACQUISITION .76 2.3.1. Compile a Target List and Determine Target Company 76 2.3.2. Evaluating Target Company and Make a Decision . 77 2.3.3. Negotiations with Target companies and Determine Conditions 78 2.3.4. Preparing Letter of Intent (LOI) 78 2.3.5. Due Diligence 79 2.3.6. Complete Merger Transactions and Legal Integration . 82 CHAPTER III THE NECESSITY OF PROFESSIONALS, PERFORMANCE EVALUATION METHODS, AND RESEARCH ABOUT PERFORMANCE OF THE MERGED COMPANIES AKIS REIT AND SAF REIT 3.1. THE NECESSITY OF M&A PROFESSIONALS .85 3.1.1. Investment Banks . 85 3.1.2. Attorneys 86 3.1.3. Accountants 87 3.2. PERFORMANCE EVALUATION METHODS IN MERGERS AND ACQUISITIONS87 3.2.1. Ratio Analysis Method 88 3.2.2. Parametric Method 89 3.2.3. Nonparametric Method 89 3.3. RESEARCH ON MEASURING FINANCIAL ACTIVITY AFTER MERGER .90 3.3.1. Purpose of the Research. 90 3.3.2. Subject of the Research 90 3.3.3. Method of the Research. 91 3.4. GENERAL INFORMATION ABOUT RESEARCHED COMPANIES AKIS REIT AND SAF REIT91 3.4.1. Akis Real Estate Investment Trust 91 3.4.2. Saf Real Estate Investment Trust 92 12 List of Contents 3.5. ANALYZED FINANCIAL TABLES OF AKIS WITH RATIO ANALYSIS METHOD.93 3.5.1. Rate Analysis 93 3.5.1.1. Liquidity Rate Analysis . 94 3.5.1.2. Operating Rates . 96 3.5.1.3. Debt Rates 98 3.5.1.4. Profitability Rates. 100 EVALUATION .103 CONCLUSION .113 REFERENCES 115 LIST OF TABLES Table 1.1 Advantages and Disadvantages of Organic Growth . 21 Table 1.2. Advantages and Disadvantages of Inorganic Growth. 22 Table 1.3 Merger Waves 37 Table 1.4 The 10 Largest Mergers and Takeovers in the World 44 Table1.5 Distribution of Foreign Investors by Country In Turkish Transactions . 47 Table 2.1 The Reasons of Mergers and Acquisitions . 52 Table 2.2 Speed of Integration. 69 Table. 2.3 Leadership 70 Table 2.4 Leadership at Operational and Top Management Levels. 71 Table 2.5 Post-Merger Integration team . 72 Table 2.6 Typical Integration Questions 73 Table 3.1 Rate Analysis 93 LIST OF FIGURES Figure 1.1 The Types of Growth 20 Figure 1.2 Acquisitions 24 Figure 1.3. Merger 25 Figure 1.4 Mergers and Acquisitions Types 31 Figure 1.5 Purchasing Methods for M&A 32 Figure 1.6 The Number and Value of M&A in the world between the years 1985-2015 38 Figure 1.7 M&A Transactions Inspected Yearly (All Operations, 2013-2020) . 45 Figure 1.8 Annual Turkish M&A Review 2020. 48 Figure 1.9 Turkey Venture Capital Deal Activity Between the Years 2013-2020 49 Figure 1.10 Percentage Of The Popular Sectors In 2020. 50 Figure 2.1 Integration Planning: A Developing and Interactive Process across All Preacquisition Phases and Core Capabilites. 65 Figure 2.2. The Process Of Success In M&As 67 Figure 2.3 Five C’s Framework 75 Figure 3.1 Liquidity Rates 94 Figure 3.2 Operating Rates 96 Figure 3.3 Debt Rates 98 Figure 3.4 Profitability Rates. 100
