Mergers, Other Management

Mergers

Merger happens when two companies, mostly of the same size, agree to go forward as a single new company in the best interest of both. The shareholders of the involved companies often remain as joint proprietors. Both company's stocks are surrendered and a new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created. A merger can bear a resemblance to takeover, but results in a new company name and a new branding.

There are different mergers based business structures. Here are a few types:

  • Horizontal merger: This happens when two or more companies who are in direct competition and share the same product lines and markets merge.
  • Vertical merger: This happens between a customer and company or a supplier and company. For example, a laptop company merge with the processor company.
  • Market-extension merger: This happens between companies that sell the same products in different markets.
  • Product-extension merger: This happens between companies selling different but related products in the same market.
  • Conglomeration: This happens between companies that have no common business areas.

Finance based mergers

There are two types of mergers based on the financing. Each has certain implications for the investors:

  • Purchase mergers: This occurs when one company takes on another. The purchase is made with cash or through the issue of some kind of debt instrument.
  • Consolidation mergers: This occurs when two or more companies join to become a completely new company.
Posted Date: 9/28/2012 2:52:09 AM | Location : United States







Related Discussions:- Mergers, Assignment Help, Ask Question on Mergers, Get Answer, Expert's Help, Mergers Discussions

Write discussion on Mergers
Your posts are moderated
Related Questions
Question 1 What are the various advisory services offered by EXIM Bank? Question 2 Identify the significance of Post Shipment Finance. Discuss the post shipment finance sc

In country X unemployment constitutes a national crisis. According to the Central Statistical Office of this country, in 1999, using the expanded definition that counts as unemploy

Sewing: Before sewing, the pages of a books must be pressed firmly, to expel air and also to crease the folds of the sheets. Books  are  to be trimmed before sewing. There are

The User Interface  User interfaces are mechanisms built into information systems and services to enable the users to utilise these services in an effective manner. The interf

Management Communication MC is a process of communicating in management itself. Effective managerial communication is either written or spoken. It is based on a several strateg

Cyclostyled Form: Revised version of bound register form came into existence due to the typewriter and cyclostyling machine. The entries are typed. Multiple copies (up to four


Question 1 Write short notes on the Quality planning an element of Quality management Question 2 What are the steps to the Fade QI model? Question 3 Quality costs are th

QUESTION 1 The museums of today serve increasingly complex institutional missions and diverse audiences through their programs. Critically discuss and analyze the role of museu

QUESTION 1 When one considers an ordinary organizational culture alongside a Total Quality Management organizational culture, some clear differences can be identified Based