In developed economies, smooth merger and acquisition transactions are regular features. The merger and amalgamation of companies have increased in number in recent years. All over the world, a number of mega-merger and hostile takeover could be witnessed. Until recently, an acquisition of one company by another was viewed as a sign of failure of the former and violent aggression of the latter. But the trend towards globalization across the nations and regions of the World has only increased the intensity and number of mergers, creating more focused, competition in each industry. So now is the time for you to make your corporate endeavors fora merger and acquisition transaction smooth by calling The Law Offices of Aric N. Williams.
Merger/ amalgamation
When two or more companies decide to pool the resources under a common entity, it is called a merger. As a result of the merger, a new company comes into existence, and this process is called a consolidation. Alternatively, if as a result of a merger, one company survives and others loses their independent entity, this is called an "Absorption". There are three forms of smooth merger and acquisition transactions.
• Horizontal Mergers: This is a combination of two or more firms in a similar type or area of business — for example, the merger of HP & COMPAQ. This is a horizontal merger because the company is making a lateral purchase of a competitor, consequently obtaining more market share in their industry.
• Vertical Merger: This is a combination of two or more firms involved in different stages of production or distribution – for example, a shipping company merging with a box manufacture. It may take the form of aup or down stream merger — for example Automobile companies & auto ancillary units, etc. This is a vertical merger because a company is either buying a supplier for its goods (up-stream merger) or distributor of its goods (down-stream merger).
• Conglomerate merger: This is a combination of firms engaged in unrelated lines of business activity. The main motive behind the conglomerate merger is to diversify the portfolio of goods that a company sells, thereby reducing the risk involved in the ever changing market and demand for its products.
Acquisition or take over for your business
It refers to one company acquiring effective control over assets or management of another company without any combination of companies, but rather, each company remains independent. A hostile takeover is where one company is unwilling to be taken over by another company but does not have the ability to prevent the takeover.
A hostile takeover can occurred by one company purchasing the required number of shares from non-controlling shareholders in the open market of another company, all the while, keeping its identity a secret.
Transportation service in Los Angeles CA is a matter of responsibility. Conducting the proper Due Diligence is essential to ensure you choose the right type of vendor that can fit your needs. A big part of the Due Diligence process includes verifying that the vendor has the proper license, employment structure, and insurances. This Due Diligence process will also help determine which vendor of transportation services in Los Angeles CA will be the best fit for your company’s dynamics and post-transaction integration process. Having the proper legal consultants assist you through this process is vital and at the Law Offices of Aric N. Williams we ready to help with all your needs.
