Acquisitions

RECENT NEWS
Forbes  6 hrs ago  Comment 
Read a summary of the most significant legal and business due diligence activities connected with a typical M&A transaction. By planning these activities carefully and properly anticipating the related issues that may arise, the target company...
The Economic Times  10 hrs ago  Comment 
BlackBerry Ltd said it has completed its acquisition of Secusmart, a privately held firm that specializes in voice and data encryption.
The Economic Times  11 hrs ago  Comment 
Shares in French tech firm Atos soared nearly five percent on Friday as traders cheered the news it had bought the IT wing of Xerox for more than $1 billion.
Wall Street Journal  Dec 19  Comment 
American Apparel has been approached by Irving Place Capital about a possible takeover, according to people familiar with the matter.
FierceBiotech  Dec 18  Comment 
Roche is betting big on antibodies that can attack two targets at once, signing on to buy Austria's Dutalys for as much as $488.8 million and get its hands on some proprietary technology.
The Straits Times  Dec 18  Comment 
December 19, 2014 1:39 AM UNITS of mainboard-listed Perennial China Retail Trust (PCRT) will be suspended from trading next week after a buyout exercise by its parent passed the 90 per cent mark.
New York Times  Dec 18  Comment 
Shares of Aer Lingus rose 9 percent after the International Consolidated Airlines Group, the parent of British Airways, made a takeover approach.
FierceBiotech  Dec 18  Comment 
Further beefing up its rapidly growing pipeline for new cancer drugs, Merck has stepped in to buy out Switzerland's OncoEthix in a deal worth upward of $375 million. And the Big Pharma player is paying a hefty premium for a BET inhibitor that was...
Forbes  Dec 18  Comment 
Formerly known as Athletes Performance, EXOS has dominated the realm of athlete training for the NFL Draft, but today's acquisition adds its ability to help assist with health and performance in the corporate arena.




 
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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