Merger and Acquisition Explained in Hindi| Meaning of Mergers and Acquisition| Merger vs Acquisition

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8.9 هزار بار بازدید - 6 ماه پیش - 🔴 Difference Between Acquisition and
🔴 Difference Between Acquisition and Merger ---

The following are some key differences between an acquisition and a merger on the basis of different parameters.

🫵🏻 Benefiting Party
The fact that various parties might profit from each type of transaction is perhaps the most apparent distinction between mergers and acquisitions. Here is how each may be advantageous to the parties:
🗣️ Merger: In a merger, both organisations can continue to operate and use their combined resources to enhance the general operating procedures of the new organisation.
🗣️ Acquisition: In acquisitions, the firm acting as the buyer might gain access to new shareholders, new consumers, new inventory, additional cash, and a wider market. This indicates that the purchasing firm will probably gain more than the acquired company. An acquired firm either goes out of business or continues to operate under the acquiring company's name.

🫵🏻 Resulting entity
While both mergers and acquisitions entail pooling the resources of two businesses, the end outcome might vary depending on the transaction.
🗣️ Mergers: Most mergers result in a new company that incorporates the greatest features of the two original businesses. Some firms may merge the names of the two former companies to use for the new one, particularly if either company is a familyowned enterprise.
🗣️ Acquisitions: When a business buys another, it makes an acquisition. As a result, the acquiring firm often keeps its own identity while having the option to incorporate some aspects of the acquired company.

🫵🏻 Issuing of new shares
There is another significant distinction between mergers and acquisitions. It is in relation to the issuance of additional shares for investors. Here is how it goes.
Merger: Following a merger, the resulting new company often issues new shares to enable new shareholders to own a stake in the operational firm rather than one of the prior corporations.
Acquisition: A corporation typically doesn't issue any additional shares following an acquisition. This is because the acquiring company stays the same, and the acquired company no longer exists. The option to purchase shares in the acquiring firm is available to shareholders.

🫵🏻 Decision-Making power
The degree of decision-making authority each firm has over the business move is a further distinction between acquisitions and mergers.
🗣️ Merger: When two businesses combine, it signifies their mutual willingness to work together. This indicates that each has almost equal decision-making authority.
🗣️ Acquisition: While agreements between the two firms are frequently required for acquisitions, it is conceivable for one company to acquire another without the other's express assent. A hostile takeover is another name for this kind of transaction.

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🔴 In this video-
Teacher's Name - CS Payal Popli
Topic -Merger and Acquisition
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#padhakulog #economics #economicstudent #statistics #economics11thclass
#csfoundation #icsi  #companysecretary #companiesact2013  #commercestudents
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