Professional Documents
Culture Documents
defination
Change in existing business structure
Increase in contol and assets
Decrease in contol and assets
effects
Increase or decrease in financial structure
Increase or decrease in organisational
structure
Increase or decrease in controls
Reasons
Intense competition
Liberalisation
enviorment
Acquisitions
acquisition
When one company acquire another company
mergers
Increase in the assets
Increase in the control
Eg company A and company B
A+B
Types of mergers
Absorbtion
Consolidation
Absorbtion
One company acquire another company
Transfer of ownership
Consolidation
One company mergers with another copmpany
to form the separate antity
Altogether a new company is formed
Eg
A+B=C
A= amalgamated company (which acquire)
B= amalgamating company (which wishes
to merge)