merger and acquisition
Srilatha
(Querist) 15 October 2009
This query is : Resolved
Can any one provide the difference between the term Mergers and Acquisitions?
joyce
(Expert) 15 October 2009
Term mergers is merging with oneanother i.e making two business into one under certain terms and conditions. there will be amalgamation also. On the other hand Acquistions means taking off the lands by paying compensaion or value worth to the said taken land. in simple terms.i.e acquiring, usually govt acquires the land of private persons for public utility, eg: expansion of roads, highways etc..
Sachin Bhatia
(Expert) 15 October 2009
1) Merger : A merger happens when two firms, often of about the same size, agree to move forward and exist as a single new company rather than remain separately owned and operated. This kind of action is more specifically referred to as a "merger of equals." Mergers are often financed by a stock swap, in which the stock owners in both companies receive an equivalent quantity of stock in the new company. The stocks of both companies are surrendered and new company stock is issued in its place.
2)Acquisition : On the other hand,when one company takes over another company and clearly establishes itself as the new owner, the purchase is called an acquisition. Legally, the target company ceases to exist, the buyer swallows the business and the buyer's stock continues to be traded. Acquisition refers to two unequal companies becoming one and the financing can involve a cash and debt combination, all cash, stocks, or other equity of the company.
Raj Kumar Makkad
(Expert) 15 October 2009
I do agree with Sachin but add that acquisition is not confined to mere companies rather Govt./State when deems fit to take ownership of property movable/immovable) belonging to any person for the public use then a proceeding is initiated under Land acquisition Act and when the ownership and possession is handed over/taken over by State then acquisition takes place, however, the quarry might be confined to companies/business only.
