2006-12-18 23:58:12 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Are you trying to bag a guy in mergers and acquisitions?
2006-12-19 00:05:29 · answer #1 · answered by Sax M 6 · 0⤊ 0⤋
Mergers are called M&A or mergers and acquisitions.
There are three types of mergers.
1)Stock swap
2)Cash based
3)LBO or levereged buyout
In the stock swap, the Acquirer calculates the price of the mergee and figures out a swap ratio or exchange ratio that does not dilute it's own shares and exchanges the mergees share for their share at the calculated exchange or swap ratio.
In cash based cash is exchaged for the mergee at a value calculated by the merger on negotiation.
LBO's are levereged buyouts where usually the employees buyout their company from agents or raiders raid other companies or even in friendly merger they leverage their financing for the mergee.
The value in all cases for the mergee is figured out using the same method with understanding of synergies involved and the value of the company assets and resources invloved.
This is simple explanation beyond this it is very laborious.
2006-12-19 11:31:03 · answer #2 · answered by Mathew C 5 · 0⤊ 0⤋
A merger is when two (or more) companies combine. The intention is to be more profitable combined than they were seperate.
Sometimes competitors will combine to decrease competition. Or two unrelated companies will combine to create business advantages (AOL & Time Warner).
2006-12-19 09:47:14 · answer #3 · answered by MR MONEY 3 · 0⤊ 0⤋
Two companies become one, usually to gain market share or sell off one sides previous assets for a profit. Its usually more profitable to buy the smaller companies stock before it is bought by the larger but not always. Alot of jobs are lost sometimes but stock price and market share are usually the gainers on the long haul.
2006-12-20 03:18:53 · answer #4 · answered by financeman 1 · 0⤊ 0⤋
Marriage (For Corporations)
2006-12-19 14:08:58 · answer #5 · answered by Anonymous · 0⤊ 1⤋
merge= two companies bond together eg. MG&rover.
2006-12-19 08:02:15 · answer #6 · answered by stuart b 1 · 1⤊ 0⤋
things that screw the little guy
2006-12-19 11:00:55 · answer #7 · answered by Lexi 5 · 0⤊ 0⤋