Mergers:
Mergers can be defined as:
• Conglomerate mergers:
Occurs when the two merging companies belong to two
different industrial sectors.
• Vertical mergers:
A vertical merger is said to have taken place if two
companies producing the same goods combine. The two
companies should be at different stages of
production.
• Horizontal mergers:
Take place when two merging companies manufacture
similar goods and belong to the same industry.
• Congeneric merger:
A merger is said to be congeneric when two companies
belong to the same industry. They however, do not
have any common customer, buyer, and supplier.
Acquisitions:
Acquisitions: A company is said to have "Acquired" a company, when one company buys another company. Acquisitions can be either hostile or friendly.
In case of hostile acquisitions, the company,
which is to be bought, has no information about the
acquisition. The company, which would be sold, is
taken by surprise.
In case of friendly acquisition, the two companies
cooperate with each other and settle matters related
to acquisitions.
There are times when a much smaller company manages to take control of the management of a bigger company but at the same time retains its name for the combination of both the companies. This process is known as "reverse takeover."
Beard Law Group, PC - Fortune and Beard, PC
