Merger And Acquisition Of A Merger

1962 Words8 Pages
A merger takes place when two companies joint together to form a single company. A merger is alike to a takeover or acquisition, except that in the case of a merger remaining stakeholders of both companies involved retain a shared interest in the new company. By contrast, in an acquisition one company purchases a bulk of a second company’s stock, creating an uneven balance of ownership in the new combined company. Acquisition refers to buying out another company and taking it into the fold of the acquiring company. This is done by paying the acquired company, the value of its capital and depending upon the situations, a premium over the capital amount. Acquisitions and mergers both involve one or multiple companies purchasing all or part of another company. The main difference between a merger and an acquisition is how they are financed. By acquiring a small company with a good technology, a big company can develop a competitive advantage for example; recently Facebook acquired Instagram and Whatsapp. This means to stay competitive; company needs to remain on top of technological development and buyer will need to pay an amount if they want to acquire the company and for seller, that premium represents their company 's future growth. Merger or acquired its increases the capital of small company. HUMAN RESOURCE PLANNING HR should know the vision, and strategic plans of the company need of the company, management of all aspects of HR. Essentially, good HR planning will ensure

More about Merger And Acquisition Of A Merger

Open Document