who pays for the price of buying the other corporation
2006-10-21 05:49:34 · 4 answers · asked by sid a 2 in Business & Finance ➔ Corporations
the corporation that took over the other corporation pays the price because it's buying it.
2006-10-21 05:56:18 · answer #1 · answered by nashpaty 3 · 0⤊ 0⤋
When a corporation is taken over, it is bought out by another corporation. The buyer is the corporation taking over. For example we will call the corporation who buys A and the one who is taken over B. Corporation A can use B as its own and B's business goes on as it was under new management. For book purposes, A takes B and:
Sums up value of assets of B
subtracts value of B's liabilities=
amount paid over is called goodwill on A's books and is an asset intangible account
2006-10-21 13:14:21 · answer #2 · answered by Sarah C 2 · 0⤊ 0⤋
The buying corporation pays. Or put it this way, the sare holders of the buying coporation pay for the take-over.
Something tells me you didn't read your question before you posted it. :-)
Regards.
2006-10-21 13:13:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The acquirer stock holders pays to the stock holders of the acquiree. It is very complicated beyond this if we bring in the different type of financing and different types of mergers like hostile, lbo's, equity swaps, cash purchase etc; etc; When you grow up and go to a good B school try to do some research to get these facts. At this age I don't think you can grasp it.
2006-10-21 15:56:25 · answer #4 · answered by Mathew C 5 · 0⤊ 0⤋