Company Purchases and Mergers

Related BrainMass Solutions

• Mergers & Acquisitions

  Some mergers are called purchase mergers in which new companies are purchased and others are called consolidation mergers where a new company is created. There are several terms used in conjunction with mergers and acquisition.

• Mergers within the same and different industry.

  - It helps company with a seasonal and therefore uneven cash flow purchases a firm in an unrelated industry with complementing seasonal sales that will level out the cash flow.

• What are the differences among horizontal, vertical, and conglomerate mergers?

  The most common instance is that the company acquires it supplier or distributor. For example, a car maker purchases a company making car windshields.

• M&A Analysis - Effects of Accounting, Taxes and Law

  In the acquisition where the acquiring company purchases the shares of the target company, the acquisition should be structured as a purchase.

• Accounting Business Combinations

  The reason is that the pooling of interest method allowed companies to add the book values of their net assets without specifying which company was the purchaser and which company was the purchased.

• Mergers and Acquisitions of Target Corporation

  It helps company with a seasonal and therefore uneven cash flow purchases a firm in an unrelated industry with complementing seasonal sales that will level out the cash flow.

• What is the difference between a merger and consolidation?

  429670 What is the difference between a merger and consolidation? What is the difference between a merger and consolidation? List and explain the motives of mergers and consolidations.

• High Tech Firm Acquisition

  The new entity purchases the acquired company's stock in exchange for the stock of the parent company. When this happens, the acquired company dissolves, allowing the assets and liabilities to become those of the newly formed company.

• Mergers, Corporate Control and Governance and Financial Distress

  In other words, goodwill only appears when an entity purchases another company. See Excel for computation.