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Basic Accounting Knowledge: Merger And Acquisition

2011/1/10 13:43:00 46

Accounting Acquisition Company

What is M & A?


The connotation of M & A is very extensive, generally refers to merger (Merger) and takeover (Acquisition).


Mergers, also known as merger and absorption, refer to two or more independent enterprises.

company

Merge into an enterprise.

usually

One or more companies are absorbed by a dominant company.


Acquisition refers to the acquisition of a company's stock or assets by cash or negotiable securities in order to get it.

enterprise

The ownership or control of all assets or assets of a company.


Another concept related to the meaning of merger and acquisition is Consolidation. It refers to two or more than two enterprises merging into a new enterprise. After completion of the merger, a number of legal persons become a legal person.


Essence of mergers and acquisitions


The essence of M & A is a kind of alienation of rights in the process of controlling the rights of enterprises.

M & A activities are carried out under certain conditions of property rights and enterprise system. In the process of merger and acquisition, one or a part of the right owners get the corresponding benefits from the control of the enterprise owned by the pfer, while the other part of the right body obtains this part of the control right by paying a certain price.

The process of mergers and acquisitions is essentially the process of changing the subject of the rights of enterprises.

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