Acquisitions

RECENT NEWS
New York Times  5 hrs ago  Comment 
How AbbVie came to win Shire demonstrates that even in the middle of a new boom in mergers and acquisitions, a hefty premium is no guarantee of success.
newratings.com  Jul 24  Comment 
GSG GROUP - Publication of Mandatory Public Takeover Offer by Materali, a.s. GSG GROUP S.A. / Key word(s): Offer 24.07.2014 19:32 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group...
Reuters  Jul 24  Comment 
Israel-based SodaStream International , which makes home soda machines, is in talks to be taken private in a deal valuing the company at $828 million, Bloomberg said, citing people...
Forbes  Jul 24  Comment 
There are multiple well-founded rumors abounding that the three major record labels will soon purchase anywhere from 9 to 14 percent of the Soundcloud streaming music service. On the surface this might seem like a natural progression for both...
Cloud Computing  Jul 24  Comment 
Lavi Industries, a leading provider of queue management and customer flow solutions, announced today its partnership with Qmetrix, a leading provider of customer frequency technology, by acquiring a 50% share of the company...
Forbes  Jul 24  Comment 
Flurry has an RTB platform called the Flurry marketplace that enables automated sales of ads across different ad properties. This acquisition is important for Yahoo as it can significantly boost its mobile ad revenue and resurrect its faltering...




 
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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