what is merger, acquisition & amalgamation?
what is the differnce between them?
- 3 Answers
- 31306 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
Who are the recent Padam Awards Winners?
What are your views on Kashmir issue?
Pass the Journal Entry of Debentures Are Issued at Discount?
What are your views on demonetization?
What do you know about the recent satellite launch?
If you will be an animal in the next birth, what animal you would like to be and why?
What is the penal interest charged in your bank? Have you ever refunded it?
Do you anything about bureaucracy?
What is the Bank of England base rate/Fed funds rate as of this morning?
What is MFN? What is Gold Standard?
What were the headlines in the Financial Times today?
What are various qualities one should possess to become a Bank Officer? Do you think you possess those?
How well can you handle the pressure?
what did you know about jrg securities ltd
HI ,MY QUALIFICATION B.A. + PGDCA AND TRAINED ON JAVA . NOW I WANT TO KNOW TO GET JOB SOON WHICH COURSE I HAVE TO LEARN ?
