Noun n the codes c and u show whether a noun, or a particular sense of a noun, is countable an agenda, two agendas or uncountable. A vertical merger integrates different types of businesses that may share a suppliercustomer relationship. A horizontal merger is the merging of companies that operate in the same industry often competitors, creating economies of scale. Generally, the larger of the two companies is the acquirer. Joint venture dictionary definition joint venture defined. An absorption of one corporation by another, with the corporation being absorbed losing its separate identity and governance. Negotiation definition and meaning collins english. A merger is the combination of two companies into one by either closing the old entities into one new entity or by one company absorbing the other. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Negotiations are formal discussions between people who have different aims or intentions. In order to understand the logic underlying valuation methods, background knowledge on merger and acquisition will be provided. The first is when youve decided it makes sense to join forces with another company to reap the rewards that come. A merger definition in business often refers to a corporate strategy where different companies will combine into one company, either to strengthen their financial or operational position. Coates iv1 the core goal of corporate law and governance is to improve outcomes for participants in businesses organized as corporations, and for society, relative to what could be achieved.
In a merger there is usually a process of negotiation involved between the two companies prior to the combination taking place. Merger meaning in the cambridge english dictionary. The main difference between a merger and an acquisition lies in the way in which the combination of the two companies is brought about. A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation. Merger 1 acquisition in which all assets and liabilities are absorbed by the buyer. Dutch term force majeure which covers the english one, also includes all circumstances beyond a persons control and has therefore a wider meaning. The first is when youve decided it makes sense to join forces with another. They are not sharply defined, instead referring to.
Businessdictionary is a free easytouse free business glossary with over 30,000 definitions that span across critical businessrelated topics including. Introduction to mergers and acquisitions 5 a horizontal merger horizontal mergers occur when two companies sell similar products to the same markets. A situation where the total value of share capital that is used to purchase another company is less than the total value of the equity that is being purchased. Acquirer, predator, offeror, the company which is making a bid for the merger or. There are several types of mergers and also several reasons why companies complete mergers. Technically speaking, the two companies are of similar size for a merger to occur. A private equityled rollup is an example of a horizontal merger, whereby several companies that supply similar services or goods are combined under a common financial and reporting infrastructure to consolidate a fragmented. Dictionary of business fourth edition specialist dictionaries. Law an absorption of a lesser estate, contract, criminal offense, right, or liability into a succeeding larger one.
Mergers can drastically affect stock before the merger of businesses occurs. Mergers are effected by exchange of the premerger stock shares for the stock of the new firm. Mergers come into play in the world of business for two very different reasons. Mergers synonyms, mergers pronunciation, mergers translation, english dictionary definition of mergers. The premerger planning is the phase where the whole merger strategy is being planned and formulated at the most comprehensive and practical manner. It leads to the dissolution of more or more entities, to get absorbed into another undertaking, which is relatively bigger in size. An absorption of one corporation by another, with the corporation being. A merger deficit can occur when a company takes the funds that it raised in new stock offerings to buy the stock of another company. In a merger, two or more companies are combined into one, where only the acquiring company retains its identity.
Owners of each pre merger firm continue as owners, and the resources of the merging entities are pooled for the benefit of the new entity. The remaining corporation continues in existence, having. Mergers and acquisitions edinburgh business school. The remaining corporation continues in existence, having absorbed the others. Voluntary amalgamation of two firms on roughly equal terms into one new legal entity. A horizontal merger occurs between or among competitors,and a vertical merger occurs when suppliers, shippers, retailers, and such in a common industry join together. For readers who are lawyers, bankers, or studying to be one, this book can serve as an introduction to the legal and business terms including corporate and private equity sponsor terminology often encountered. The term is from jerry b harveys book the abilene paradox and other meditations on. A horizontal merger is a merger or business consolidation that occurs between firms that operate in the same space, as competition tends to be higher and the synergies and. Glossary of terminology and definitions for business and management. Mergers and acquisitions edinburgh business school ix preface an understanding of mergers and acquisitions as a discipline is increasingly important in modern business. Merger article about merger by the free dictionary. In other words, it occurs when one company buys out its competitor or they agree to join forces and create a new combined company. Owners of each premerger firm continue as owners, and the resources of the merging entities are pooled for the benefit of the new entity.
Stock exchange chiefly to replace manual systems with electronic processes. The pre merger planning is the phase where the whole merger strategy is being planned and formulated at the most comprehensive and practical manner. This thesis discusses merger and acquisition and introduces the method and framework to effectively value and price a company in merger and acquisition context. Merger definition is the absorption of an estate, a contract, or an interest in another, of a minor offense in a greater, or of a cause of action into a judgment. Given the interest in the academic and business literature, merger and acquisition will continue to be an interesting but challenging strategy in the search for expanding corporate influence and profitability. Merger financial definition of merger financial dictionary. Coates iv1 the core goal of corporate law and governance is to improve outcomes for participants in businesses organized as corporations, and for. Consolidation of the acquired firm by the acquiring firm. The merger implementation is the process where merger negotiation proceeds until the deal is concluded. A glance at any business newspaper or business news web page will indicate that mergers and acquisitions are big business and are taking place all the time. A horizontal merger, also known as horizontal integration, is the combination of two companies that compete in the same or in a similar industry. Mergers definition entrepreneur small business encyclopedia. Merger and acquisition legal definition of merger and. Several financing options are associated with takeover activity and are generally specific to the acquiring firm.
Merger law an absorption of one estate, or one contract, in another, or of a minor offense in a greater merger one who, or that which, merges merger business, finance the combining of two commercial enterprises into a unified single enterprise under a single management, with voluntary participation by both parties. A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity. Find the top 100 most popular items in amazon books best sellers. In other words, two or more companies are consolidated into one company. Definition and meaning a company merger is a fusion of two companies two firms get married and become one. Capital outlay money which is spent for the acquisition of assets, such as land.
Mergers definition of mergers by the free dictionary. Methods by which corporations legally unify ownership of assets formerly subject to separate controls. Mergers are effected by exchange of the pre merger stock shares for the stock of the new firm. For this reason, the term merger of equals is sometimes used. The goal of a horizontal merger is to create a new, larger organization with more market share.
A merger is an agreement that unites two existing companies into one new company. The firms that agree to merge are roughly equal in terms of size, customers, scale of operations, etc. Merger definition, a statutory combination of two or more corporations by the transfer of the properties to one surviving corporation. All information on free downloadable ebook mergers and acquisitions free pdf ebook cakart free book section, click on image to see the detail mergers and acquisitions free pdf ebook you can find many more books for competitive exam or ca cs cma exam, click here to view details. Dealmakers dictionary of mergers and acquisition terminology. For readers who are lawyers, bankers, or studying to be one, this book can serve as an introduction to the legal and business terms including corporate and private equity sponsor terminology often encountered in the structuring, negotiation and execution of mergers. The term merger is used to mean the unification of two or more business houses to form an entirely new entity. Dealmakers dictionary of mergers and acquisition terminology mandell, donnan on. Companies may also try to merge to increase their scale and productivity. Mergers article about mergers by the free dictionary. Merger definition of merger by the free dictionary. A merger is a financial activity that is undertaken in a large variety of industries.
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