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Acquiring a company is the process of purchasing another company. Many businesses do this when they want to expand their products and services.
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∙ 9y ago
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Does goodwill only appear on the consolidated balance sheet?
That is correct. Goodwill as an asset appears on the balance sheet of a consolidated company to represent any premium that the acquiring company paid for a subsidiary company that is in excess of the fair value of the company's net assets. Therefore, Goodwill would only show up on the consolidated balance sheet, as the subsidiary's net assets are not reflected on the acquiring company's balance sheet until the consolidation process.
What is consolidating financial statements?
hen a large company acquire one or more small companies then acquiring company is called the parent company and acquired companies are called subsidiary companies so when the financial statements of parent company and subsidiary companies are prepared in one financial statement altogether those financial statements are called consolidated financial statements.
Is the book value of a firm generally synonymous with its strategic value?
No. The "book value" of a firm is based on the outstanding shares, liquidable assets, and cash-on-hand - all recorded financial data. The "strategic value" of a firm may actually be much more than what the firm is work "on the books," as a company acquiring the firm may want to pay more for that strategic value.
What is operating cycle in accounting management?
Operating cycle is the time which required by the business from acquiring inventory to production and selling of products and generating revenue.
What is the difference between purchase and pooling accounting methods?
1. In case of Pooling Accounting new balance sheet of the combined company is created whereas in case of Purchase Accounting no new balance sheet is prepared. Thepurchasing company adds the assets of the acquired company to its balance sheetusing a fair market value.2. In case of Pooling Accounting it is basically the merging of two companies whereas incase of Purchase Accounting the acquired company is known as investment.3. In case of Pooling Accounting 'who is buying whom' is not clearly stated whereas incase of Purchase Accounting 'who is buying whom' is clearly stated.4. In case of Pooling Accounting it didnot record the price the acquiring company has topay for the acquisition whereas in case of Purchase Accounting it is valued using thefair market value.Answer by,Mr. Shabbir Alam
What are the disadvantage of acquiring a company in the same industry?
Monopoly
What is a blank check company?
A blank check company is a company which exists solely for the purpose of merging with or acquiring another entity.
What is brownfield investment?
A brownfield investment means acquiring stake in an existing company.
What is the process of acquisition?
Business acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. The end result is to grow the business in a quicker and more profitable manner than normal organic growth would allow.
What is the process of business acquisition?
Business acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. The end result is to grow the business in a quicker and more profitable manner than normal organic growth would allow.
What are some ways that a company can invest in another company?
They range from the simple, such as buying stock in another company in a passive investment, to acquiring, or purchasing, another company outright or merging with another company.
What can the opportunities of acquiring another company in the same industry offer?
The opportunities gained by acquiring another company in the same industry are the ability to produce more goods, a new location or market for goods, and more jobs will be created within an industry. This is especially true if the other company is actually in another country.
What happens to the stock of a publicly traded company in chapter 11 if it is bought out by another company?
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.
Must a company that is targeted for acquisition have a current record of profitability to be of strategic value to a potential acquiring company?
Yes, according to Mutual Investors capital management it is imperative that the company has profitability.
What is Rugged Ridges telephone number?
Well, I would recommend acquiring their contact and telephone information and number from the company or retailer that carries the product's company website.
When did IBM acquire the company Vivisimo?
On May 29, 2012 IBM finished acquiring the company Vivisimo. This company is now within the IBM Information Management Software brand. It was formerly private.
What transaction takes place in acquisition of an equity?
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).
