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    Mergers and Acquisitions

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    Saili Sarmalkar
    Mergers and acquisitions (M&A) involve the buying, selling, dividing and combining of companies to help enterprises grow rapidly in new sectors or locations without creating subsidiaries or using joint ventures. M&A activity results in entity reorganization aimed at growth. Widespread M&A leads to industry consolidation as many small companies' resources become concentrated in a few larger ones, as occurred in the automotive industry from 1910-1940. While mergers legally consolidate two companies into one and acquisitions involve one company taking over another and establishing itself as the new owner, either structure can result in economic and financial consolidation of the entities.

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    Mergers and Acquisitions

    Uploaded by

    Saili Sarmalkar
    51 views1 page
    Mergers and acquisitions (M&A) involve the buying, selling, dividing and combining of companies to help enterprises grow rapidly in new sectors or locations without creating subsidiaries or using joint ventures. M&A activity results in entity reorganization aimed at growth. Widespread M&A leads to industry consolidation as many small companies' resources become concentrated in a few larger ones, as occurred in the automotive industry from 1910-1940. While mergers legally consolidate two companies into one and acquisitions involve one company taking over another and establishing itself as the new owner, either structure can result in economic and financial consolidation of the entities.

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    Mergers and Acquisitions

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    Mergers and acquisitions (M&A) involve the buying, selling, dividing and combining of companies to help enterprises grow rapidly in new sectors or locations without creating subsidiaries or using joint ventures. M&A activity results in entity reorganization aimed at growth. Widespread M&A leads to industry consolidation as many small companies' resources become concentrated in a few larger ones, as occurred in the automotive industry from 1910-1940. While mergers legally consolidate two companies into one and acquisitions involve one company taking over another and establishing itself as the new owner, either structure can result in economic and financial consolidation of the entities.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views1 page

    Mergers and Acquisitions

    Uploaded by

    Saili Sarmalkar
    Mergers and acquisitions (M&A) involve the buying, selling, dividing and combining of companies to help enterprises grow rapidly in new sectors or locations without creating subsidiaries or using joint ventures. M&A activity results in entity reorganization aimed at growth. Widespread M&A leads to industry consolidation as many small companies' resources become concentrated in a few larger ones, as occurred in the automotive industry from 1910-1940. While mergers legally consolidate two companies into one and acquisitions involve one company taking over another and establishing itself as the new owner, either structure can result in economic and financial consolidation of the entities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Mergers and acquisitions (abbreviated M&A) are both aspects of strategic management,

    corporate finance and management dealing with the buying, selling, dividing and combining
    of different companies and similar entities that can help an enterprise grow rapidly in its
    sector or location of origin, or a new field or new location, without creating a subsidiary,
    other child entity or using a joint venture. Mergers and acquisitions activity can be defined as
    a type of restructuring in that they result in some entity reorganization with the aim to provide
    growth or positive value. Consolidation of an industry or sector occurs when widespread
    M&A activity concentrates the resources of many small companies into a few larger ones,
    such as occurred with the automotive industry between 1910 and 1940.
    The distinction between a "merger" and an "acquisition" has become increasingly blurred in
    various respects (particularly in terms of the ultimate economic outcome), although it has not
    completely disappeared in all situations. From a legal point of view, a merger is a legal
    consolidation of two companies into one entity, whereas an acquisition occurs when one
    company takes over another and completely establishes itself as the new owner (in which
    case the target company still exists as an independent legal entity controlled by the acquirer).
    Either structure can result in the economic and financial consolidation of the two entities. In
    practice, a deal that is an acquisition for legal purposes may be euphemistically called a
    "merger of equals" if both CEOs agree that joining together is in the best interest of both of
    their companies, while when the deal is unfriendly (that is, when the target company does not
    want to be purchased) it is almost always regarded as an "acquisition".

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