6:12 pm - Thursday May 25, 2017

An Overview of Merger and Acquisition


The word ‘merger’ refers to the coming together of two or more organizations in a corporate scenario; while the word ‘acquisition’ refers to the act of acquiring or taking over some other entity’s property, again in a corporate scenario. In the world of business, these two terms are often used in collaboration and are referred to as M&A. Although the two terms are commonly used as synonyms but there is a slight difference in their meaning.

Acquisition in other words is the buying of an organization or a company. This buying can be either friendly or hostile. In a friendly case there will be peaceful negotiations until the concerned parties come to a settlement, however, in a hostile situation the buyer might be harsh and may not pay heed to the unwillingness of the seller. Generally, a larger company acquires a smaller one, but there are rare cases where the opposite happens and that is known as a Reverse Merger.

The professionals of this field will have elaborate knowledge as to how and when an M&A could take place successfully. One such individual is Amit Raizada the chief executive officer of SBV or Spectrum Business Ventures. He is an expert in not just leading the M& As but also in structuring and financing for SBV, deal sourcing, designing and building business plans, and many other things. His focus lies on being engaged personally in each and every portfolio entity, so that he is able to get a hold of the available business strategies related to the particular portfolio.

A little different from the acquisition, a merger happens when there is mutual consent between the companies or organizations that are about to get together and form one single corporate organization. One of the foremost things that need to be done once a merger is carried out is to surrender the previously individual stocks and issue new stocks in the name of the merged company. Depending on the nature of the companies, a merger can be termed as a horizontal merger, a conglomerate merger or a vertical merger.

A horizontal merger would be one in which the merging companies have the same product line. A vertical merger occurs when the two merging companies have varied products but on the coming together of the two products, the value of the company enhances greatly. Finally, when two companies with completely different genres of product decide to merge, a conglomerate merger happens.

Those well versed with the subject of mergers and acquisitions like Amit Raizada will be able to cite in details the other types of mergers – the purchased merger and the consolidation merger. This is defined by the way the merger is financed. Amit’s experience is what makes him stand out in his field of work. His business interests are extended far and wide, to places like Canada, Mexico, United States, Europe and Central America. It is by the contributions of Amit that the SBV is presently able to include assets in a wide range of industries.

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