Question

Each student will individually present one news article related to the contents of this course to the class during the semester. The presentation should be accompanied by a short summary of the article short.

this is my accouting course so i need a summary for an article to present in class

please choose easy article and type here

i will make ppt myself

Answer 1

Amalgamation or Mergers, Acquisitions and Takeovers

The term mergers and acquisitions are often used interchangeably in common. However there are differences. While merger means unification of two entities into one, acquisition involves one entity buying out another and absorbing the same.

Mergers is a blending of two or more existing undertakings into one undertaking, the shareholders of each blending company become substantially the the shareholderof the company which is to carry on the blended undertaking.

Type of Mergers

1) Horizontal merger: the two companies which have merged are in the same industry

2) Vertical merger : this merger happens when two companies that have buyer-seller relationship

3) Conglomerate merger: such mergers involves firms engaged in unrelated type of business operations

4) Congeneric merger : in these mergers the acquirer and the target companies are related through basic technologies, production processes or markets.

Acquisition and Takeovers

Acquisition refers to the purchase of controlling interest by one company in the share capital of an existing company

Takeovers: Normally acquisitions aremade friendly, however when the process of acquisition is unfriendly such acquisition is referred to as takeover.

Reasons and Rationale for Mergers and Acquisitions

1) Synergistic operating economies

2) Diversification

3) Taxation

4) Growth and

5) Consolidation of production capacities and increasing market power