In September 2019 Thomas Cook Plc were reported to be in financial difficulties. Rather than be liquidated, Thomas Cook Plc were reported to be actively seeking a company to be acquired by.

a)Mergers have been classified into 3 categories. Describe the three main types of mergers and give examples.

b)Thomas Cook Plc were seeking an acquirer because they were in severe financial difficulties. Outline other reasons for which a bidder company may wish to acquire another company.

c)What types of due diligence is a bidding company likely to undertake on a potential target company?

d)Provide an overview of the merger process. Your answer should include a discussion of how targets are identified, how acquiring companies can acquire the shares of a target company (particularly if it is a hostile bid) and how merger transactions can be financed.