difference Between merger and acquisition?
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Answer / rishi seth
When 2 Companies A and B merge then generally a new Company
C is created, both A and B loose their Identity to form C.
Here A + B = C.
While in case of Acquisition a firm retains its identity
and acquire other company.
Here A + B = A....size of A increases after it acquires B
and B looses its identity to become a part of A.
Is This Answer Correct ? | 77 Yes | 8 No |
Answer / shruti
merger means two companies having same business come
together and form a new company whereas in acuisition one
company undertake business of other.
Is This Answer Correct ? | 33 Yes | 9 No |
Answer / vikash pandey
MERGER MEANS TWO COMPANIES COMBINE TOGETHER & FORM NEW
COMPANY & MOTIVE IS TO EARN MORE PROFIT
EG: A + B = C
A & B COMBINE TOGETHER & FORM NEW COMPANY C
ACQUISITION MEANS WHEN ONE COMPANY ACQUIRE ANOTHER COMPANY
TO EXPAND THEIR BUSINESS & KNOWN WITH THE SAME NAME
EG: A + B = A
HERE A TOOK OVER THE COMPANY B & EXPAND THEIR BUSINESS
Is This Answer Correct ? | 12 Yes | 1 No |
Answer / shailendra kumar
When one company takes over another and clearly established
itself as the new owner, the purchase is called an
acquisition.
A merger happens when two firms, often of about the same
size, agree to go forward as a single new company rather
than remain separately owned and operated.
Is This Answer Correct ? | 9 Yes | 1 No |
Answer / ravi kiran
merger means two companies coming together and forming into
one company eg SBI-LIFE insurence, Bharthi Axia life,
kinetic honda.
acquisition is one company taking over another company for
example M&M taking over Kinetic, ICICI PLC.
Is This Answer Correct ? | 13 Yes | 6 No |
Answer / shailendra kumar
a merger is a combination of two companies into one larger
company.
An acquisition, also known as a takeover, is the buying of
one company (the ‘target’) by another
Is This Answer Correct ? | 7 Yes | 0 No |
Answer / apraarya
Acquisition
The purchase of one firm by another
Merger
The combination of two firms into a new legal entity
A new company is created
Both sets of shareholders have to approve the transaction.
Amalgamation
A genuine merger in which both sets of shareholders must
approve the transaction
Requires a fairness opinion by an independent expert on the
true value of the firm’s shares when a public minority
exists
Is This Answer Correct ? | 5 Yes | 1 No |
Answer / madhu
In the case of a merger, two companies A and B combine (or
merge) to form a third company C. The two companies A and B
cease to exist and they togrther are called as C. The
shareholders of the two companies A and B now become share
holders of a third company C. Merger generally occurs if
the two companies are of same or similar size
In the case of acquisition, one company acquires another.
If company A acquires company B, company B ceases to exist
and company A continues to exist. The share holders of
company B now become the share holders of company A. In
this case, the size of company a should be larger that that
of B
Is This Answer Correct ? | 5 Yes | 1 No |
Answer / vandana
A merger take place when two companies come together and
form into a new company with a new name.for eg-if a and b
come together and form into a new company c is merger.And
acqusition means acquiring two company together and form in
to 1 company without retaining its position.for eg-a and b
come together and form into a new company called b as b
does retains its value.
Is This Answer Correct ? | 5 Yes | 1 No |
Answer / raghavendr r pawar
Merger means merging the one company with other company it
takes place only in same kind of business or business model.
Acquisition means acquiring the competitive and sick
companies to maintaining their dominance or extending their
empire.
Is This Answer Correct ? | 12 Yes | 9 No |
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