Acquisitions

RECENT NEWS
Wall Street Journal  9 hrs ago  Comment 
Time Inc. hired banks to help field takeover or partnership interest after the country’s largest magazine publisher received overtures from a group of media investors including Edgar Bronfman Jr.
Wall Street Journal  11 hrs ago  Comment 
An investment firm with ties to junk-bond pioneer Michael Milken is nearing a deal to buy industrial-packaging company Mauser Group for more than $2 billion.
Reuters  Dec 8  Comment 
Time Inc , the publisher of Time, People and Fortune magazines, has tapped Morgan Stanley and Bank of America Corp to help field takeover or partnership interest, the Wall Street...
Forbes  Dec 8  Comment 
Ocado, the only UK ‘supermarket’ in the UK without a bricks and mortar stores presence, today posted another strong period of sales growth in its fourth quarter trading statement. But the average basket size is the ‘red flag’ that might...
Benzinga  Dec 8  Comment 
Offering its take on Fitbit Inc (NYSE: FIT)'s acquisition of certain Pebble assets, Oppenheimer said the deal is unlikely to immediately impact the near-term growth trajectory. Nevertheless, the firm believes the deal to be positive and...
newratings.com  Dec 8  Comment 
GfK SE: Takeover Offer: Investment Firm Kohlberg Kravis Roberts intends to make voluntary public takeover offer for the shares in GfK SE GfK SE / Key word(s): Mergers & Acquisitions 08.12.2016 12:09 Disclosure of an inside information...
Reuters  Dec 8  Comment 
* Pharming Group announces completion of acquisition of all north American commercialization rights for Ruconest from Valeant




 
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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