Acquisitions

RECENT NEWS
Reuters  10 hrs ago  Comment 
Australia's Treasury Wine Estates Ltd, which is the subject of two $3.1 billion takeover proposals, is considering making acquisitions in the United States to accelerate...
Wall Street Journal  Aug 20  Comment 
A handful of private-equity firms are vying to buy American Tire Distributors Holdings Inc. in an auction that could fetch more than $3 billion, according to people familiar with the matter.
Reuters  Aug 20  Comment 
Hewlett-Packard Co is in a better position today to make acquisitions than in the past year, given its $4.7 billion in net cash and as it evaluates its overall cloud...
The Economic Times  Aug 20  Comment 
"The previous government slowing (things) down — some people felt it more than slowed down. India's image as a result was not as strong as it had been."
Financial Times  Aug 20  Comment 
Cloud storage group has recruited former Priceline executive Bob Mylod for his financial management experience, particularly in international dealmaking
The Economic Times  Aug 20  Comment 
The Centre is likely to set up a specialized agency to chart the rehabilitation plan for families displaced by land acquisition.
Automotive World  Aug 20  Comment 
As competition heats up in the connected car landscape, it is likely that greater collaborations are needed between companies, and many automotive OEMs and suppliers are choosing to make partnerships or acquisitions to gain expertise from...
The Australian  Aug 19  Comment 
RECENT acquisitions and a focus on cost cutting has deliver a boost to APN’s interim profit, but the group has warned advertising markets remain volatile.




 
TOP CONTRIBUTORS

Acquisitions are the purchase a controlling stake in another company by purchasing 51 percent or more of its voting shares with cash, stock, or a combination of the two.

Mergers and acquisitions are two closely related terms and are often listed together on a company's balance sheet as mergers and acquisitions (M&A). But there is an important distinction between these terms - in a merger, two companies become one and both original companies cease to exist; in an acquisition, the acquired company is absorbed by the acquiring company, and only the acquired company ceases to exist.

An acquisition, also sometimes called a takeover or buyout, usually involves the takeover of a smaller firm by a larger one. But there are occasions when a smaller firm will obtain the management control of a larger company, and in these cases the smaller acquiring firm will often keep the existing company name and brand in place for the new, combined company. Takeovers or acquisitions can be friendly, where the management of the company to be acquired negotiates a deal with the acquiring company; or, they can be hostile, where the takeover is made despite opposition by the company's management or an offer is made without prior knowledge by the company's board of directors.

Examples

An acquisition can be carried out in one of two ways:

  • The acquiring company buys the shares of the acquired company and obtains ownership control.
  • The acquiring company buys the assets of the acquired company, and the cash that the acquired company receives in return is paid to shareholders through a divided or by liquidating the company. If the acquiring company buys the entire assets of the acquired company, this leaves the acquired company as an empty shell which is eventually liquidated or enters another line of business.
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