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What is Demerger ?

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 'uniting of

What is Merger ?

A merger is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers. Merger and Acquisition (M&A) are commonly done to expand a company’s reach, expand into new segments, or gain market share. All of these are done to increase shareholder value Often, during a merger, companies have to prevent purchases or mergers by additional companies. Mergers and acquisitions (M&A) can be a sell or buy-side deal. Depending on which type of deal it is, determines what type of institutions are involved. Examples of Sell-Side Firms           Investment Bank (primary institution)           Commercial Bank           Stock Brokers           Market Makers Examples of Buy-Side Firms           Hedge Funds           Asset Managers           Institutional Investors           Retail Investors A list of Successful Mergers and Acquisitions ( M&A ) in India

What is Mergers, Acquisitions and Corporate Restructuring ?

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, there was a merger