Company Acquisition and Takeover vs acquisition , Finance, Other Engineering

Assignment Help:
Company Acquisition, Takeover vs acquisition and holding copany

A fundamental characteristic of merger (either through absorption or consolidation) is that the acquiring or amalgamated company (existing or new) takes over the ownership of the other company and combines its operations with its own operations. Acquisition may be defined as an act of acquiring effective control over assets or management of a company by another company without any combination of businesses or companies. A substantial acquisition occurs when an acquiring firm acquires substantial quantity of shares or voting rights of the target company.

Takeover

Generally speaking takeover means acquisition. A takeover occurs when the acquiring firm takes over the control of the target firm. An acquisition or take-over does not necessarily entail full, legal control. A company can have effective control over another company by holding minority ownership.

Takeover vs. acquisition

Sometimes, a distinction between takeover and acquisition is made. The term takeover is or unwilling acquisition, it is called a takeover. In an unwilling acquisition, the management of Target Company would oppose a move of being taken over. When managements of acquiring and target companies mutually and willingly agree for the takeover, it is called acquisition of friendly takeover.

Holding company

A company can obtain the status of a holding company by acquiring shares of other companies. A holding company is a company that holds more than half of the nominal value of the equity capital of another company, called a subsidiary company, or controls the composition of its board subsidiary company, or controls the composition of its board of directors. Both bolding and subsidiary companies retain their separate legal entities and maintain their separate books of accounts. Unlike some countries, like the USA, or the UK, India is not legally required to consolidate accounts of holding and subsidiary companies.

Related Discussions:- Company Acquisition and Takeover vs acquisition , Finance

Core sand, Q.27 Explain the desirable characteristics of core sand. What ar...

Q.27 Explain the desirable characteristics of core sand. What are the normal binders used in core sand ? Types of cores used in foundry. Ans. Core Sand : The core and ma

Casting, Casting means the pouring of molten metal into a mould, where soli...

Casting means the pouring of molten metal into a mould, where solidification occurs. Advantages of Casting Process          (i) It is the cheapest method of fabrication.

International financial management , explain the funcyions and structure of...

explain the funcyions and structure of foreign exchange market.

Hot section inspections of aircraft, Hot Section Inspections (HSI's) Th...

Hot Section Inspections (HSI's) The hot section includes all components in the combustion and turbine sections of the engine. Scheduled inspections may involve visual inspectio

Gas metal arc welding (gmaw), Gas metal arc welding (GMAW) is performed by ...

Gas metal arc welding (GMAW) is performed by using direct current reverse polarity as it gives both good cleaning action and fast filler metal deposition rates. A rather high weldi

Model independent option valuation , Derive the functional relationship bet...

Derive the functional relationship between the no-arbitrage values of the two vertical spreads, C (K1)-C (K2) and C (K2)-C (K3).

Welding, why is it important to only strike the arc in the weld joint

why is it important to only strike the arc in the weld joint

Armature cipl, in which type of armature winding Equaliser ring dummy coils...

in which type of armature winding Equaliser ring dummy coils are used

Asteroid belt, Why is there an asteroid belt? - Rocky planetismals survive...

Why is there an asteroid belt? - Rocky planetismals survived in the asteroid belt between Mars and Jupiter because they did not grow together into a planet. - Jupiter’s gravity, t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd