Regardless of the type, in general, a company will acquire another company because its decision makers believe it will improve the bottom line — whether by increasing sales, decreasing costs, or otherwise. But each of these different types of acquisitions accomplishes that goal in a different wa...
Whether you are a business executive with a growing company or you are a legal professional interested in entering the sphere of business law, you should strive to learn more about the intricacies of business mergers and acquisitions. Laws and strategies surrounding mergers and acquisitions tend to ...
An acquisition is a transaction in which one company purchases most or all of another company’s shares to gain control of that company. Acquisitions are common in business and may occur with or without the target company’s approval. There’s often a no-shop clause during the process of ...
Acquisitions are often amicable, meaning both companies are on-board with and negotiate the terms of the transaction. However, the word “acquisition” is sometimes used interchangeably with “takeover,” which can be hostile. In other words, one company might wrest control of — or acquire — ...
Among successful private-equity acquisitions in which a target company was bought, improved, and sold, with no additional acquisitions along the way, operating-profit margins increased by an average of about 2.5 percentage points more than those at peer companies during the same period.1 ...
Basic types of merger The four most basic types of merger are horizontal, vertical, congeneric, and conglomerate mergers. Beyond these core types, there are also market or product extension mergers and numerous types of acquisitions that are also in some sense mergers. Keep reading to find out ...
Personal finance involves managing one's own money and assets, such as budgeting, saving, and investing. Corporate finance involves managing a company's financial activities, such as capital investments, acquisitions, and financial planning. Public finance involves managing the financial activities of ...
The term “company” refers to any business involved in commercial activities, while a corporation is a specific type of company. Corporations are defined by a separate legal status from owners, conferring limited liability protection. So, while all corporations are companies, not all companies are...
A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name. Mergers and acquisitions require the valuation of a company or its assets to decide how much to pay for those assets. M&A can be financed through a combination of de...
news and events for a company, such as new product launches or successful acquisitions, can also lead to a higher market stock price. Other factors out of your control, such as inflation, supply and demand, and overall market conditions can also dictate the strength of your company's stock....