what is merger, acquisition & amalgamation?
what is the differnce between them?
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Answer / g.naveen kumar
Merger is Restricted to a case of assets and
liabilities,amalgamation is an arrangement.Main difference
b/w merger and acquisition is their mode of finance.In
merger will be occur b/w two similar size companies existed
as a new company.Mode of payment is in stock swap. But in
acquisition to unequal companies becoming one.And mode of
financing may involve cash and debt combination.
| Is This Answer Correct ? | 25 Yes | 6 No |
Answer / tarun agarwal
acquisition and takeover are similar,
there are two types of takeover
1-voluntary acquisition
2- Hostile acquisition
whereas
Merger means-
A merger refers to the process whereby at least two companies combine to form one single company. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry.
Merger types can be broadly classified into the following five subheads as described below.
They are Horizontal Merger, Conglomeration, Vertical Merger, Product-Extension Merger and Market-Extension Merger.
Horizontal Merger refers to the merger of two companies who are direct competitors of one another. They serve the same market and sell the same product.
Conglomeration refers to the merger of companies, which do not either sell any related products or cater to any related markets. Here, the two companies entering the merger process do not possess any common business ties.
Vertical Merger is effected either between a company and a customer or between a company and a supplier.
Product-Extension Merger is executed among companies, which sell different products of a related category. They also seek to serve a common market. This type of merger enables the new company to go in for a pooling in of their products so as to serve a common market, which was earlier fragmented among them.
Market-Extension Merger occurs between two companies that sell identical products in different markets. It basically expands the market base of the product.
| Is This Answer Correct ? | 13 Yes | 1 No |
Answer / vikas kumar
Merger and amalgamation are almost similar, here by merging
two companies one new comany orises or may one exists and
loses it's virtue.In acquition most of time both the
companies remian what they are, only the ownership changes
and acquirer shows it's books after consolidation of other
company.
the major difference is in merger both companies records
their data in same books but in acquition it is not always,
most of time it is not.
| Is This Answer Correct ? | 8 Yes | 12 No |
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