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Mergers & Acquisitions

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Mergers & Acquisitions: I have to write an essay in which I define mergers acquisitions terminology. Then I must define and paraphrase the following types of M&As: Horizontal, Vertical, Conglomerate, Spin-offs, and Divestitures. Finally, provide at least one example of each of the five M&A's that have occurred during the last three years.

Please include an introduction, conclsuion, also properly cite sources.

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This explanation provides you a comprehensive argument relating to Mergers & Acquisitions

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Mergers and acquisitions refer to corporate strategy, finance and management that related to combining different types of companies. This process involves buying and selling of companies that aid in improving the marketing, operations and financial management of these companies.

Merger refers to the combination of two or more companies. In other words, when two or more companies combine to form one entity there is a merger. From the legal perspective, merger means a combination of two companies where one survives and the other stops existing. The new combination has a new name.

On the other hand acquisition refers to the buying of different companies that can aid and help growth the company. In other words, when one company acquires controlling interest in another company there is an acquisition. The company that is acquired is known as the target firm and the company that acquires is called the acquiring firm.

The essential difference between acquisition and merger is that in case of an acquisition one company, the purchaser takes over the other company and the purchased company stops existing. On the other hand a merger takes place between companies of the same size and they agree to join together to form a new company. In reality, most mergers have one dominant firm buys out another firm and the acquired firm claims that this was a merger of equals. Where the top managers agree to join together there is also a merger.

One of the commonest reasons proffered for mergers and acquisitions is synergy. Synergy means greater cost efficiencies because of mergers. These can be ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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