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Introductions Demerger  Demerger or Spin-off refers to a business strategy where a company particularly the larger company is divided or split into two or more units i.e., into the number of small units operating separately. The objective of all smaller units is the same. Thus, the shares are individually sold to the public. Generally, demerger is done so that each of the units can perform its business efficiently by focusing on the specific task which will contribute to the easy achievement of the objectives.  In order to sell the subsidiaries and smaller units of the company, the demerger is adopted. The main objective of the demerger is to divide a company into various units for achieving the specialization in a particular segment. Demerger or spin-off is just the reverse strategy of merger which implies the strategy to join the number of companies so that the firms intend to work together under the same roof.  Alternatively, the demerger is the opposite of 'u...

An acquisition is when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a  target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. Acquisitions, which are very common in business, may occur with the target company's approval, or in spite of its disapproval.  The acquiring company buys the shares or the assets of the target company, which gives the acquiring company the power to make decisions concerning the acquired assets without needing the approval of  shareholders  from the target company. Types of Acquisitions There are various takeovers according to the type of acquiring a business and the business being acquired and also the method required for acquiring business to purchase the other. The various types of acquisition are as follows: ...

WHAT IS MERGERS ? Image By:- iPleaders Blog.com Introduction to Mergers The merger refers to combining two or more companies into one companioning   two or more companies into one company. It can either be done by merging of one or more companies into the existing company or framing a new to the existing company or framing a new company by merging two or more existing company. The word 'amalgamation is used for the merger by the Income Tax Act, The merger is done in the following two types: ·     Merger by absorption:- Combining two or more companies into the existing company are known as absorption. In this merger, one company loses its entity and goes into liquidation and all other companies remain the same. For example, there are two companies A Ltd. and B Ltd., company B Ltd. is merged in the assets and liabilities of company B Ltd will be acquired by company A Ltd. and company B Ltd. will be liquidated. For example, in India, ther...