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Mergers and Acquisitions

Mergers and acquisitions are business strategies that deal with selling, buying, and combining of companies. Mergers occur when two or more companies are joined together. When one company buys another, either through friendly or hostile takeover, it is called acquisition.

500 Questions

5 reasons for merger?

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Asked by Wiki User

Five reasons for a merger include Capital, satisfy customer needs, gain talented staff, new market opportunities and product development

What is an acquisition debt?

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Asked by Wiki User

An acquisition debt is any debt used to buy, build, or improve a primary or secondary residence.

What typeof merger does the passage describe?

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Asked by TaylorSmithgp4486

A merger is when two companies are selling different produces. It happens when the companies are on different levels.

What is the definition of vertical merger?

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Asked by TaylorSmithgp4486

Vertical merger is between two companies that is producing different goods. This happens when two different firms are on different levels.

What is the meaning of data acquisition?

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Asked by Wiki User

Data acquisition is the process of sampling signals that measure real world physical conditions and converting the resulting samples into digital numeric values that can be manipulated by a computer

What is the journal entry when purchasing a company?

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Asked by Wiki User

Debit assets
Credit liabilities
credit cash / bank (balance amount)

Meaning of merger?

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Asked by Wiki User

Merger is the when two or more forms or parties unite

What is the effect of merger?

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synergy effect of mergers means when two businesses merge together than the value or the income of the merged business will be more than that of the individual businesses. It is not just the combined earnings or value of the individual businesses rather the earnings and value increases because the loopholes of one is overcome by the strong areas of other. This disproportionate increase in value is called synergy.

Ex: production person combines with marketing person works wonder.

co. A intends to take Co. B, so here value synergy can be indicated as:

NPVab =Vab-(Va+Vb)

NPVab=Value synergy

Vab= Value of merged firm

Va=Value of co. A

Vb=Value of co. B