Consolidations of merger - amalgamation, Financial Management

Assignment Help:

Consolidations of Merger - amalgamation

A consolidation is a combination of two or more companies into a new company. In this form of merger all the existing companies which combine go into liquidation and form a new company with a different entity. The entity of consolidating corporation is lost and their assets and liabilities are taken over by the new corporation or company. The assets of old concerns are sold o the new concern and their management and control also passes into the hands of the new concern. Suppose these are two companies called A Ltd. And B Ltd. And they merger together to form a new company called AB Ltd. Or C Ltd. It is a case of consolidation. The term consolidation is also sometimes used as amalgamation. However a merger through absorption may be distinguished from a merger through consolidation. One concern acquires the business of another concern without forming a new company in the case of absorption whereas a new concern is formed by the union of two or more concerns in case of consolidation. Consolidation generally takes place between two equal size concerns and the size of concerns considerably differs in case of a merger through absorption. Generally a small concern is merged with a big concern. Through both the terms are used interchangeably. The methods and problems of financing mergers through absorption consolidations are also similar.


Related Discussions:- Consolidations of merger - amalgamation

Case study - volatility trading, Case Study: Volatility Trading (a) The...

Case Study: Volatility Trading (a) The understanding in this case study deal with Convertible as well as Reverse-Convertible bonds. These are interesting instruments by themsel

Return payment method, when asked to calculate return method given cash flo...

when asked to calculate return method given cash flow before depreciation how do you do it

Report on liquidity and financing, Extent of Financing Required It is ...

Extent of Financing Required It is clear that sales are unsure with low, high and medium estimates of demand. This of itself gives a few uncertainty but the reliability and pr

Explain discounted cash flow analysis, Discounted cash flow analysis is th...

Discounted cash flow analysis is the term employ to describe the technique whereby the value of future cash flows is discounted back to a present value so that the monetary values

Graphic presentation of net operating income approach, Q. Graphic Presentat...

Q. Graphic Presentation of Net Operating Income Approach ? Graphic Presentation of NOI (Net Operating Income) Approach: - NOI (Net Operating Income) approach is explained graph

Explain learning outcomes of financial management, Explain learning outcome...

Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to

Define minimum price make producers as a whole worse off, Suppose the gover...

Suppose the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off?  Explain. As a higher

Securities and exchange commission of usa, SECURITIES AND EXCHANGE COMMISSI...

SECURITIES AND EXCHANGE COMMISSION OF USA In the United States, securities industry is regulated by the United States Securities and Exchange Commission (SEC). It is the govern

Assignment, The objective of the assignment is to develop an understanding ...

The objective of the assignment is to develop an understanding of the factors that influence changes in the prices of stocks. *A person has $ 100,000 that they have to invest in s

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