Basic idea about MERGER and ACQUISITION

[Cassius Marcellus]

I want to gain some knowledge related with the term merger and acquisition. This is because i am doing a research on the topic how different companies come together and go for the merger and acquisition. What is the basic idea behind this? So if any one has any idea related with terms, then try to help me out. I would me really thankful to you, if you do this. Thanks.

[southparx]

Basically if we talk about merger, then it is the purchase of one firm by another and if we talk about the term acquisition is the grouping of two firms into a new authorized unit. Here a new company is being formed. Merger and Acquisition culture seems to come through increasing globalization. This is what i would like to tell you about the merger and acquisition.

[CAILYN]

I would like to say few things about the acqusition. When two companies combine together to form a new company altogether, then it is known as acquisition. An acquisition can be private or public. I would like to give you an example of the acquisition. The merger of Chase Manhattan Corporation with J.P. Morgan & Company and the name of the new company formed as a result of the merger is J.P. Morgan Chase & Company. I think i have provided you bit info.

[Odalis]

Talking about merger there are three types of merger-

1. Horizontal merger:- In this type of merger the two companies are of the same business area.
2. Vertical merger:-In this type of merger the two companies involved in different stages of creation of the same product.
3. Conglomerate merger:-In this type of merger the two companies are of the different area business area.

[Cassius Marcellus]

I have referred all the posts and all of them were having good content and information related with the merger and acquisition. The example which you have given was also a good one. I hope that the information which you all have provided will help me out. This is my thanks to all those who have replied to my query and have spend their time in giving me the reply.