How do control issues affect mergers?

Q: How does joint control differ from control as applied on consolidation?

A: As per IFRS 10 , an entity is said to have control if they have power over investee, right to…

Q: What is a merger of equals?

A: Merger of equals: It happens when 2 companies of approximately the same capacity come together to…

Q: Is synergy a valid rationale for mergers?

A: Synergy: The definition of synergies is that the union of two company’s fallout in a product that is…

Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing…

A: A company or a corporate entity or an organization can diversify and grow using different…

Q: What are agency problems?

A: Owners of the company are shareholders. The number of the shareholders for a corporation will be…

Q: What are agency conflicts? What groups can have agency conflicts?

A: Introduction: The problem or conflict of the entity occurs as a result of conflict between two…

Q: What are the steps in valuing a merger using thecompressed APV approach?

A: Adjusted present value of the investment is the method of calculating the net present value of a…

Q: Examine what the empirical evidence say about who actually gains in a merger combinations.

A: Merger is a corporate strategy to reduce the competition and expand business operations. Merger…

Q: What is the relationship between principle-agency theory, separation of ownership, and controversy?

A: Corporation there are shareholders who are the owners of the company but they do not run the company…

Q: How are non-controlling interests affected by intra-group transactions?

A: Non-controlling interest is the portion of subsidiary company's that is not owned by the parent…

Q: s how break risk is

A: Introduction : Merger arbitrage can be understood as an investment technique in which an investor…

Q: What is the term use to describe making successive offers or asking prices in response to a lack of…

A: Mergers and Acquisition is the process by which a company consolidates or transfers the ownership of…

Q: Why so many mergers fail to produce the expected synergistic gains?

A: Merger:It is an agreement which unites two or more companies into a new company. It helps companies…

Q: What major “merger waves” have occurred in the United States?

A: Mergers take put in waves due to macro-factors such as financial stuns. Mechanical changes, or…

Q: Discuss the effects and procedure for mergers and acquisition.

A: SOLUTION- Mergers and acquisition is a part of almost every industry, as is its lasting effect on…

Q: What’s the difference between a hostile and a friendly merger?

A: A hostile takeover comes around when one company, the obtaining company, tries to require over…

Q: In the context of Merger & Acquisition, What is the definition for Purchase Price and why is it…

A: Merger refers when two or more companies merge to form a single legal entity. Mergers are made so…

Q: cons

A: A joint venture (JV) is a contractual arrangement whereby or extra events conform to percentage…

Q: How are non controlling intrerests (NCI) affected by intragroup transactions?

A: Non-controlling interests are the ownership is defined where the shareholder holds less than 50% of…

Q: What is joint venture?

A: JOINT VENTURES: Joint Venture is a business legal entity where the two or more than two business…

Q: Briefly describe some of the anti-takeover measure used.

A: Companies are either reducing the competition or adjusting with them. This can be done with the help…

Q: what does the voting rights of the Exchange mean?

A: Shareholder voting indicates the privilege given to shareholders to take part in the decision making…

Q: Explain what is involved in valuing a merger using the ‘comparative firms’ approach.

A: Valuation is referred as the quantitative method to estimate the fair value of an assets or a…

Q: The benefits from merger or acquisition

A: Merger and acquisition is a corporate strategy in which two or more companies combine to form a new…

Q: What are horizontal, vertical, congeneric, andconglomerate mergers? Are the different typesof…

A: Horizontal merger: If two companies combine to achieve the organizational synergies in the same…

Q: Define conglomerate merger

A: A conglomerate merger is a merger of companies engaged in corporate practices wholly irrelevant.

Q: Find a recent merger transaction that failed due to regulatory concerns over market share…

A: Many a times regulators block a M&A (mergers and acquisitions) deal on the basis that it will…

Q: Which are the main legislative acts governing the Mergers & Aquisition activities in the United…

A: Mergers and Acquisitions (M&A) are transactions of uniting two or more companies into one. The…

Q: What is the difference between merger and enter into a joint arrangement?

A: The question is based on the concept of Accounting Theory.

Q: What is a merger? Discuss if it is an effective strategy or not.

A: A business combination is a deal in which one company is acquired by another (acquired person).…

Q: How is goodwill now treated in a merger?

A: Goodwill forms a part of assets of the entity and is considered an intangible asset.

Q: Discuss the pros and cons of diversification as a rationale for mergers.

A: Pros of diversification as a rationale for mergers are as follows: Economies of scale: Mergers of…

Q: Explain why diversification, per se, is probably not a good reason for merger.

A: Diversification only is not actually a good reason for mergers. Diversification doesn't create value…

Q: What is the difference between a merger and a consolidation?

A: Merger : A merger can be characterized as the substantive and legislative joining of two or more…

Q: types of mergers

A: Financial management includes various long term growth decisions, Merger is one of them. When two or…

Q: What is the difference between a hostile and a friendly merger?

A: Merger is the process of combining two or more different companies of similar nature and size, to…

Q: Offer some reasons that a company might choose to merge with or acquire another company.

A: A company merges or acquires another company when the benefits of such action exceed the costs.

Q: What is meant by contemplating a merger?

A: Merger is an agreement that combines two companies into one new company.There are several types of…

Q: Describe some takeover defenses.

A: Introduction: Defensive tactics: Frequently the managers of target firm oppose the attempts of…

Q: Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?

A: Definition: Acquisition: The acquisition refers to the business combination when one entity or…

Q: What is the difference between statutory merger, staturory consolidation and statutory acquisition?

A: Merger, acquisition and consolidation are three forms of business reorganisation with other…

Q: monopolies, and barriers to entry

A: Answer: The gross profit from capital must suffice three purposes as: Sufficient equivalent for…

Q: What are the four economic types of mergers?

A: Introduction: A process or an arrangement in which two or more companies are merged to create one…

Q: What Is the difference between statutory merger, statutory consolidation and statutory acquisition?

A: The difference between statutory merger, statutory consolidation and statutory acquisition is…

Q: What are some reasons for the current merger wave?

A: Merger wave can be defined as the sequence of time period where the probability of occurring mergers…

Q: What is involved in valuing a merger using the ‘comparative firms’ approach.

A: Comparable Company Analysis is defined as the process or procedure, which used to determine the…