What is acquisition, Financial Management

Acquisition (takeover) or merger

A merger is the synergy or combination of two companies which are roughly equal in size by consensus of two organisations. A takeover is where one company acquires other which is more hostile.

- Synergy/economies of scale as the merged entity increases in size

- Eliminates competition e.g. if horizontal integration

- Rapid acquisition or synergy of expertise/brands/market share

- Could be a bargain if target company an 'underachiever'

 

Posted Date: 9/3/2013 1:36:49 AM | Location : United States







Related Discussions:- What is acquisition, Assignment Help, Ask Question on What is acquisition, Get Answer, Expert's Help, What is acquisition Discussions

Write discussion on What is acquisition
Your posts are moderated
Related Questions
Explain the Advantagesand disadvantages of MBO Advantages of MBO Disadvantages of MBO Sale can be arranged quickly   Manag

Clearing and Settlement The Treasury Bills are available in physical form if an investor desires so. The market is mostly dominated by institutional players who have a facility

Q. Show the Costs of Investment in Receivables? Costs of Investment in Receivables: - When a firm sells goods or else services on credit it has to bear numerous types of costs.

discuss the applicability of operation cycle in avegetable growing business

Big Joe's is changing a piece of equipment.  The equipment will cost $5,000 and has a 5 year life.  The equipment can be leased for annual payment of $1,295 paid at the starting of

Organization and Management Pattern of UTI UTI has a full-time Chairman with an Executive Trustee reporting to him. The Executive Trustee looks after the Corporate Office, Zona

a) Definitions of EST and LFT needed in order to explain the differentiation between the terms. The EST of each activity will depend on the LFT of all preceding activities. b) S

Long- T er m Debt Long-term debt is a debt obligation that has a maturity from the date the obligation was incurred of more than one year. The debt obligation com

Explain the term- Maturities Debentures are sometimes grouped by length of time till maturity that existed on the date debenture was first issued.  Money Market Securities matu

1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com