Management and Organizational Studies 1023A/B Lecture Notes - Lecture 7: Supermajority, Net Present Value, Spend Spend Spend

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Its easier to buy another company to grow vs. starting from the ground up and introduce new product. Acquisition the purchase of one firm by another. Takeover the transfer of control from one ownership group to another. Buys enough shares of a company to have control. The acquiring firm retains its identity, while the acquired firm ceases to exist. Can be classified as domestic or cross boarder m&as. Cross boarder m&as a merger or acquisition involving a canadian and a foreign firm as either the acquiring or target company. Merger the combination of two firms into a new legal entity. Amalgamation a genuine merger in which both sets of shareholders must approve the transaction. Company a merging with company b both companies have to be okay with the merger. Must believe that merger activity is going to make the shareholder richer. Horizontal mergers companies that will purchase or merge with a similar company (e. g. same industry, competitors, etc. )