Archive | Merger

Merger Scheme and Its Contents | Business Integration | Financial Management

In this article we will discuss about merger scheme of a firm and its contents. Points to be Considered in Merger: Two important points to be noted in case of merger are: 1. A merger must be approved by a vote of the stockholders of each firm. Typically, votes of the owners of 2/3rd of the shares are required for [...]

By |2017-10-09T08:51:42+05:30October 9, 2017|Merger|Comments Off on Merger Scheme and Its Contents | Business Integration | Financial Management

10 Important Reasons for Merger

This article throw light upon the ten important reasons for mergers. The reasons are: 1. Economies of Scale 2. Operating Economies 3. Synergy 4. Growth 5. Diversification 6. Utilisation of Tax Shields 7. Increase in Value 8. Eliminations of Competition 9. Better Financial Planning 10. Economic Necessity. Reason # 1. Economies of Scale: An amalgamated company will have more resources [...]

By |2016-06-28T09:22:02+05:30June 28, 2016|Merger|Comments Off on 10 Important Reasons for Merger

Top 6 Forms of Financing a Merger

This article throws light upon the top six forms of financing a merger. The forms are: 1. Cash Offer 2. Equity Share Financing 3. Debt and Preference Share Financing 4. Deferred Payment 5. Leveraged Buy – Out 6. Tender Offer. Financing a Merger: Form # 1. Cash Offer: After the value of the firm to be acquired has been determined, [...]

By |2016-06-28T09:22:02+05:30June 28, 2016|Merger|Comments Off on Top 6 Forms of Financing a Merger
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