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C- What are the differences between Merger, Consolidation, and Acquisitions? Support your answer with one example...

C- What are the differences between Merger, Consolidation, and Acquisitions? Support your answer with one example from the real world for each type.

Solutions

Expert Solution

Merger: A merger is a corporate strategy of combining different compnies into a single company in order to cnhance the financial and operational strengths of both organizations.

Example: Exxon and mobile merger (in 1998, Exxon Corp. and Mobile Corp. made news when they announced their plans to merge. This deal is good example of merger)

Acquisition: An acquisition is when company purchase most or all of another company's shares to gain control of that company. Business acquisition is the process of acquiring a company to build on strengths or weakness of the acquiring company.

Exapmle: Disney and Pixar/ marvel acquisition, Google and andriod acquisition etc

Consolidation: The act of combining a number of things into a single more effective or coherent whole./ the action or process of making something stronger or more solid.

Example: Merger itself is example of consolidation.


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