What is the difference between a merger and a takeover


Posted on 23-04-2016        By ADMIN

merger takeover joint vanture acquisition short notes term merger = two companies come together "permanently" for mutual gains or to reduce competition acquisition = one company buys another company which may or may not be doing well takeover = same like "acquisition", but generally a company buys another company which is not doing well or has gone bankrupt. joint venture = two companies come together "temporarily" for mutual gains for a particular project/job. after the project/job is completed the joint venture is dissolved. What is the difference between a merger and a takeover? In a general sense, mergers and takeovers (or acquisitions) are very similar corporate actions - they combine two previously separate firms into a single legal entity. Significant operational advantages can be obtained when two firms are combined and, in fact, the goal of most mergers and acquisitions is to improve company performance and shareholder value over the long-term. The motivation to pursue a merger or acquisition can be considerable; a company that combines itself with another can experience boosted economies of scale, greater sales revenue and market share in its market, broadened diversification and increased tax efficiency. However


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