Interested to Buy Any Domain ? << Click Here >> for more details...
what is merger, acquisition & amalgamation?
what is the differnce between them?
- 3 Answers
- 30915 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
How will you define the role of SEBI?
What is NBFC?
Which bank is the settlement bank for cash tree?
who regulates the mutual funds in india?
The authorized capital of nabard in 2013 was raised up to what limit?
Where are the headquarters of Indian Government Banks?
What is the difference between cheque and demand draft
Tell me the difference between analysis model and design model?
What are the disadvantages proprietary firms?
How is cash flow statement different from a funds flow statement?
What are the services generally provided by a bank's branch?
What help does effective marketing provide with?
What is discount accretion?
What is communism?
Who is the investment banker?
