Merger Agreement Meaning In English

Cash payment. These transactions are generally referred to as acquisitions, not mergers, since the shareholders of the target company are removed from the image and the objective is placed under the (indirect) control of the bidder`s shareholders. An ingenious fusion is also called product extension fusion. It is a combination of two or more companies operating in the same market or sector with overlapping factors, such as technology, marketing, production processes and research and development (R -D). A product extension merger is achieved when a new line of products from one company is added to an existing product line of the other company. If two companies become a business as part of a product extension, they can have access to more consumers and, therefore, a greater market share. An example of an ingenious merger is Citigroup`s 1998 union with Travelers Insurance, two companies with complementary products. The combination of two or more independent companies into one property. Also known as acquisitions, mergers can be friendly or hostile.

In the latter case, the buying company, which has met with opposition from the directors of the target company, generally offers an excessive price (in the market) to convince the shareholders of the target company to sell them their shares. Such mergers have often been financed by junk bonds. When two companies manufacture product fusion parts or services, the union is called vertical merger. A vertical merger occurs when two companies operating at different levels within the supply chain of the same sector combine their activities. Such mergers are carried out in order to increase synergies resulting from the cost reduction resulting from the merger with one or more utility companies. One of the best-known examples of vertical merger occurred in 2000, when Internet service provider America Online (AOL) merged with media group Time Warner. He will encourage state governors to write letters supporting the merger. Despite the objective of improving performance, the results of mergers and acquisitions (M-A) are often disappointing compared to expected or expected results. Numerous empirical studies have shown high rates of failure of research and development contracts. Studies focus primarily on individual determinants. A book by Thomas Straub (2007) “The Reasons for Frequent Failure in Mergers and Acquisitions”[49] develops a global research framework that compresses different perspectives and promotes an understanding of the factors underlying merger and economics performance. The aim of this study is to help leaders make decisions.

The first important step towards this goal is the development of a common framework of reference, including contradictory theoretical hypotheses from different angles. On this basis, it is proposed to put in place a comprehensive framework to better understand the origins of performance in the field of AM and to tackle the problem of fragmentation by integrating the main competing perspectives in the field of studies on DMs.