it depends on who is doing the accounting
An acquisition is a term that is used to describe an asset that is bought or obtained. This happens a lot in the corporate world. If company A buys company B, then the purchase would be referred to as an acquisition. It could be described as company A's acquisition of company B.
As of July 2014, the market cap for Caesars Acquisition Company (CACQ) is $1,579,026,987.66.
As of July 2014, the market cap for Garnero Group Acquisition Company (GGACU) is $131,031,920.00.
goodwill
goodwill
An amicable situation where a company's management or board agree to merge or be acquired by another company. The opposite would be a hostile takeover or acquisition.
Strategic acquisition occurs when one company acquires other as part of its overall strategy. Financial acquisition is where a financial promoter is the acquirer. The acquisition is not strategic , for the company acquired is operated as an independent entity.
When a company is acquired, the options held by employees or investors may be converted, cashed out, or adjusted based on the terms of the acquisition deal.
The acquired company does not go out of business. The acquiring company (now called the parent) usually has complete control of the acquired company (now called the subsidiary).
When a company is acquired, the value of call options typically increases because the acquisition can lead to a rise in the stock price of the company being acquired. This can result in higher profits for call option holders.
Typically the company doing the acquiring goes down while the company being acquired goes up in an acquisition. This is not always the case but historically a large majority of the time this is what happens.
Sunbeam Corp. acquired The Coleman Company for $2.1 billion.
When a company is acquired, the contracts it has in place may be transferred to the new owner. The new owner is typically responsible for fulfilling the terms of the existing contracts, unless otherwise specified in the acquisition agreement.
When a company is acquired, unvested stock options may be treated differently depending on the terms of the acquisition agreement. In some cases, they may be converted into equivalent options in the acquiring company or cashed out at a predetermined value. It is important for employees to review the details of the acquisition agreement to understand what will happen to their unvested stock options.
It can be two ways. If the other company is a publicly traded company, the shares of the acquired company would get merged with the acquiring company's shares. All shareholders of the acquired company would be issued new shares of the acquiring company at a ratio that would be defined during the acquisition. If the other company is not a publicly traded company, they may opt to retain the stocks in the market of buy them all from the investors at a predefined price that gets fixed during the acquisition.
== == accumulated deficit is the net loss which is carried everyyear from p&l to balance sheet under stock holder equity. the net loss carried everyyear collectively is known as accumulated deficit == == http://www.investopedia.com/terms/s/shareholdersequity.asp
When a company is acquired, unvested options may be handled in different ways depending on the terms of the acquisition agreement. In some cases, unvested options may be converted into the acquiring company's stock options or cash, while in other cases they may be accelerated and fully vested. It is important for employees to review the acquisition agreement and consult with their company's HR or legal department to understand how their unvested options will be treated.