1. What is the difference between a merger and a consolidation? 2. Why might the
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1. What is the difference between a merger and a consolidation? 2. Why might the portfolio effect of a merger provide a higher valuation for the participating firms? 3. What is the difference between horizontal integration and vertical integration? How does antitrust policy affect the nature of mergers? 4. How is goodwill now treated in a merger? 5. Suggest at least five ways in which firms have tried to avoid being part of a target takeover Answer each question and show your work please.Explanation / Answer
What is the difference between merger and consolidation? Business Law Questions Answers.com > Wiki Answers > Categories > Law & Legal Issues > Business Law View Slide Show Best Answer A Merger is when two or more corporations come together but only one of the corporation stays exists afterwards. For example if company A and Company B merge to and only company A or B exists afterwards. In consolidation, when two or more corporations come together to form a completely new corproration. For example company A and Company B consolidate to form company C. Horizontal integration is the process of merging similar industries, industries that produce similar products. Horizontal integration would include tactics like buying competing companies that produce the same goods as you do. Vertical integration is the process of buying out suppliers of that particular industry. For example, a steel company would have an advantage over competitors by vertical integration if that company bought out places like coal fields or iron mines, places that competing steel companies rely on to make their steel
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