Acquisition, Other Management

Assignment Help:

Acquisition

An acquisition is slightly different from a merger. Unlike all mergers, all acquisitions  involve  one  company  purchasing  another  -  there  is  no exchange of stock or consolidation as a new company. One company can buy another company with cash, stock or a combination of the two.

Acquisition is likely to be friendly or hostile. In a hostile acquisition, the company, which is to be bought has no information about the acquisition and is taken by surprise. Usually, a company acquires another company against the wishes of the company being acquired. In a friendly acquisition, the companies cooperate with each other and go ahead with acquisitions. In acquisition, normally a larger company buys a smaller company. In some cases the minor company will acquire managing power of a larger company and retain the larger company's name. This is also well-known as reverse takeover.

Following are the types of acquisitions:

  • Asset deals: Under an asset deal, specific assets of a business are acquired to either wrap up its affairs or continue with another business opportunity.
  • Stock deals: Under a stock deal, instead of purchasing specific assets of the selling company, the stock or equity of the selling company is purchased at fair market value with all assets being acquired along with all their liabilities. The acquired company usually survives as a legal entity and continues to operate as subsidiary of the acquiring company.

The advantages of acquisition are as follows:

  • It provides a high speed access to resources.
  • It avoids barrier to entry.
  • It involves less reaction from competitors.
  • It can also block the competitor.
  • It provides an asset evaluation.

Related Discussions:- Acquisition

Different types of hospitality offering businesses, Question 1: (a) Sho...

Question 1: (a) Show what is meant by the managerial environment? Illustrate your answer with specific examples using both internal and external environmental influences within

Debt management policy, ‘The overall objective of debt management is to min...

‘The overall objective of debt management is to minimise the cost of borrowing to the organisation.' Required: I. Explain factors which need to be taken into account, other t

What is pegged skirt, Question 1 Explain the steps in developing pattern ...

Question 1 Explain the steps in developing pattern for built-up neckline and cowl neckline along with  diagrams Question 2 What is pegged skirt? Explain the method of develo

The public service with special emphasis, QUESTION Awards for good perf...

QUESTION Awards for good performance are increasingly employed within the public service in many countries. These may or may not have a financial value. Performance-related pay

Aids to searching in opac, Aids to Searching   Subject searching in OPA...

Aids to Searching   Subject searching in OPAC creates certain problems for the users. Several OPACs have been developed to ease vocabulary selection and aid in searching. When

Quality management plan, Q uality management plan The quality manageme...

Q uality management plan The quality management plan is to give guidance on how the quality can be checked on the project through the design reviews, the documentation, and th

Hani raafat risk calculator, Explain the use of Hani Raafat risk calculator...

Explain the use of Hani Raafat risk calculator as a semi quantitative tool for assessment of risk

Selection and packaging - value-added information services, Selection and P...

Selection and Packaging: Added value is often claimed for information services on the grounds that they bring together, in a convenient form, items of information which would

Briefly explain the responsibilities of the supervisor, The receiving and s...

The receiving and shipping department for WXS Inc. has the worst safety record in the company. Falling, lifting, impact injuries are common in this department. As the Director of W

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