I need help to compare and contrast the challenges with integrating two systems as the result of an acquisition and as the result of a merger. What are the differences in those two systems changes? What are the similarities? In what ways do the systems change in acquisitions and in mergers?© BrainMass Inc. brainmass.com March 4, 2021, 11:17 pm ad1c9bdddf
Systems Complexity - Acquisitions and Mergers
The Differences between Acquisitions and Mergers
Before the difference between acquisitions and mergers can be defined, we need to look at what they are. "An acquisition usually refers to the purchase of the assets of a company (Professor Ian Giddy, 2006)." The acquisition means one company is taking the dynamic role in buying out the other company. The reason an acquisition takes place is to increase the shareholder value.
The major difference between an acquisition and a merger is their mode of finance. "One company is clearly more dominant than the other and when the two are consolidated the weaker company is assimilated into the larger one (Resources for Entrepreneurs, 2011). The company that becomes the buyer in an acquisition is the sole proprietor. The company that is being targeted will eventually be closed. Both companies in an acquisition - which is a consolidation - are unequal. Some workers from the closing company may be kept depending on the company's needs and their skill levels. ...
Approx 640 words and 3 references