The following is a complete discussion of mergers and acquisitions which will discuss: Definition, types, benefits, reasons, advantages and disadvantages, legal basis, requirements, and procedural steps in conducting mergers and acquisitions. Most importantly, Darta Consulting will provide solutions in the form of merger and acquisition lawyers and legal consultants.
Definition of Mergers and Acquisitions
A merger is a process of diffusion or a merger of two companies, one of which remains standing with the name of the company while the other one disappears with all of its name and wealth added to the company that remains standing. Where as an acquisition is a takeover (takeover) of a company by buying shares or assets of the company, the company being purchased remains.
Types of Mergers
1. Horizontal merger
Horizontal margin is a merger conducted by a similar business (same business). One of the main objectives of a horizontal merger is to reduce competition or to increase efficiency through a combination of production, marketing and distribution activities, research and development and administrative facilities. for example a merger between two bakeries, a shoe company.
2. Vertical merger
A vertical merger is a merger that occurs between companies that are interconnected, for example in successive production flows. Vertical mergers are carried out by companies that intend to integrate their business with suppliers and / or product users in order to stabilize supply and users.
3. Congeneric mergers
A congenital merger will involve companies that are related but are not producers of the same product … Read More