Mergers and Acquisitions (M&A)Mergers and Acquisitions (M&A) is an important area of corporate finances, management and strategy that deals with the purchase of the other company or of joining the other company.Merger: Merger is a combination/consolidation of two companies to form a new company or entity. In a merger, two organizations come together to create a new business, usually with a new name. Because the companies involved are generally of similar size and stature, the term "merger of equals" is sometimes used. Acquisition: Acquisition is the purchase/acquisition of one company by another and establishes itself as new owner where no new company is formed. . In an acquisition, however, a company purchases a second, usually smaller company, which can be absorbed into the parent organization or operated as a subsidiary. A company being considered by another organization for a merger or acquisition is sometimes called a target. Difference between a merger and an acquisition: Merger refers to the combination of two entities through mutual negotiation to form a third company. Acquisition refers to the acquisition of controlling interest or asset of a target company. In a merger, the parties negotiate how relative value will translate into the amount of ownership each party will have in the new company. In an acquisition, the parties negotiate how the relative value brought to the new venture will translate into the purchase price. A merger does not require cash and in some cases can be done tax-free for both businesses, but this is not the case with an acquisition. In a share acquisition it is a quicker and simpler transaction than purchasing an asset and the buyer does not experience the dilution of ownership that occurs in… middle of the paper… and agents stop get what was originally agreed residualsValuable business accounts are needlessly lost by the new buyer and no one is sure who is responsible for resolving the problem and/or those responsible are overwhelmed or unable to resolve the problem.What are the legal issues and challenges that revolve around to M&A transactions? Write in brief some notable M&A transactions that impacted the affected industries in 2012 and 2013. There is someone I call my brightest star. whatis.techtarget.com ›Topics›IT Management Business Terms www.journalofaccountancy.com › November 2002 finance.mapsofworld.com › Merger Acquisitions www.bankcardlaw.com/.../TheCuriousEffectsOfMergersAcquisitions011. I have been informed of Mindcrest's Ethics Policy and hereby certify that the ideas and expressions contained in this work product are my own.
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