what is merger, acquisition & amalgamation?
what is the differnce between them?
- 3 Answers
- 30131 Views
- I also Faced
- E-Mail Answers
Answer Posted / tarun agarwal
acquisition and takeover are similar,
there are two types of takeover
1-voluntary acquisition
2- Hostile acquisition
whereas
Merger means-
A merger refers to the process whereby at least two companies combine to form one single company. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry.
Merger types can be broadly classified into the following five subheads as described below.
They are Horizontal Merger, Conglomeration, Vertical Merger, Product-Extension Merger and Market-Extension Merger.
Horizontal Merger refers to the merger of two companies who are direct competitors of one another. They serve the same market and sell the same product.
Conglomeration refers to the merger of companies, which do not either sell any related products or cater to any related markets. Here, the two companies entering the merger process do not possess any common business ties.
Vertical Merger is effected either between a company and a customer or between a company and a supplier.
Product-Extension Merger is executed among companies, which sell different products of a related category. They also seek to serve a common market. This type of merger enables the new company to go in for a pooling in of their products so as to serve a common market, which was earlier fragmented among them.
Market-Extension Merger occurs between two companies that sell identical products in different markets. It basically expands the market base of the product.
| Is This Answer Correct ? | 13 Yes | 1 No |
Post New Answer View All Answers
What Is Credit Management System?
What type of insurance policies are there?
Which software is used in the banking sector?
What is 'cheap money'?
Comment on Make in India scheme launched by the Modi government?
Do you know what negative interest rate policy is? Why does Japan adopt it?
Tell us something about adb? Who are its members?
What was the initial name of NITI Aayog?
In the banking scenario, what are the essential needs of the banking industry?
What do you know about Bio metric ATM?
What happens to each of the three primary financial statements when you change a) gross margin b) capital expenditures c) any other change?
Do you acquire any knowledge on Computers? Elaborate it.
What do you know about Banking Laws?
Give Any Three Advantages of Joint Stock Company?
what are your hobbies?
