Acquisitions and Mergers Flashcards
What is an acquisition?
A corporate transaction where one company purchases a portion/all of another company’s shares/assets
Both companies survive
A corporate transaction where one company purchases a portion/all of another company’s shares/assets
Both companies survive
What is an acquisition?
What is a merger?
An acquisition but one company survives
An acquisition but one company survives
What is a merger?
Reduced entry barriers and M&A
A company is able to enter into new markets and product lines instantaneously with a brand that’s already recognised.
A company is able to enter into new markets and product lines instantaneously with a brand that’s already recognised.
Reduced entry barriers and M&A
Market power and an acquisition
An acquisition can increase the market share of a company quickly
An acquisition can increase the market share of a company quickly
Market power and an acquisition
New competences/resources and an acquisition
When a company gains resources from another business, such as raising revenues or an improvement in long-term financial position of the company
When a company gains resources from another business, such as raising revenues or an improvement in long-term financial position of the company
New competences/resources and an acquisition
Access to capital and acquisitions
There’s an availability of a greater level of capital, enabling business owners to acquire funds needed without using their own funds
There’s an availability of a greater level of capital, enabling business owners to acquire funds needed without using their own funds
Access to capital and acquisitions
Duplication and acquisitions
May lead to employees duplicating their tasks. Can cause excessive costs on wages
May lead to employees duplicating their tasks. Can cause excessive costs on wages
Duplication and acquisitions
Pressure on suppliers and acquisitions
Capacity of suppliers of company may not provide additional services, supplies or materials
