Students often take up Finance as their major without considering the amount of commitment this field requires. There are numerous challenges in this field.You need to stay alert constantly; there are numbers to crunch, profits and losses to consider, vast analyses to perform for taking smallest of the decisions. And if the analysis goes even a slightest bit wrong, it has tremendous negative impact on the future decisions of the company, especially when the decisions are about Mergers and Acquisitions (M&A).
This is the main reason I believe it is a good idea to consider merger and acquisition homework help.The experts not only help you in the homework but also help you understand how everything around M&A works.
Mergers and Acquisitions form a big part of finance industry. There is always some movement going on in the field. There is frequent news about some company being merged with the other, or some company being acquired by the other. It is all about profits and numbers. Not to mention these deals attract a lot of attention thanks to their millions dollars worth. And with attention comes the Tax issues, legalities, investor issues, Staff decisions, and sometimes even venturing into new fields and technologies, and all this is done to stay competitive in this ever progressing world.
Most people believe that Mergers and acquisitions are one and the same. But that is not the case. Below is the brief description of both for your understanding.
What is a Merger?
The merger, as the name suggests, is merging two companies and forming a new one, which is run as a separate company rather than the continuation of any of the old companies.
What is Acquisition?
Acquisition is when one company takes over another company, and the company that has been taken over ceases to exist. The buyer of the company becomes the new owner, and all of the stock of previous company is no longer valid.
What is the difference between both?
The main difference between both Merger and acquisition is the way newly formed company functions. While post-merger the stock of both the companies are merged and new stocks with company name are created, post-acquisition the stock of the company that has been bought out completely ceases to exist, and this company stays just as a part of new company.
Mergers often are carried out in a friendly manner. When CEOs of both the companies decide that combining the companies would prove beneficial for both of them, they often consider merger. While in acquisition it is one company buying out another.
When do companies decide to perform merger whereas when acquisition?
Weather the companies are merged or acquired completely depends upon the board of directors of the companies.
When a company is under debt, they may pay the debt via their stocks, and when the buyer company buys out the stocks of the company in debt, it is acquisition. Debt is not the only reason for acquisition though. And it is also not always necessary that the payment is made via stocks. The company can also use cash for buying the firm in question. There are numerous factors involved in an acquisition. If you like to know more, merger and acquisition homework help provides some good information about them.
Merger Categories:
There are numerous companies daily that carry out mergers. The only thing they do not come to our notice is because of the size of the mergers. The companies carrying out these could range from very small, to small, to medium, to large, to huge. The size of the company can be anything. And not only the size, but mergers also can happen between the companies providing the same services, or those providing completely different services.
Depending upon the companies carrying out the merger, the merger can be categorized into below types:
- Horizontal Merger: Merger between the companies providing same services (products) in the same market.
- Vertical Merger: Merger between a supplier and a customer.
- Market Extension Merger: Merger between two companies operating in different markets.
- Product Extension Merger: Merger between two companies providing different products or services in the same market.
- Conglomeration: Merger between companies having no common business.
Tax Consequences:
With formation of new company, there are numerous legal formalities and processes that come into picture. One of the most important of them is taxes.
Tax is the most crucial factor before a merger, or acquisition is considered. There are numerous types of taxes involved which just add more to the already complex process of M&A. For your convenience, below are just few of the taxes that one needs to consider for the process.
- Excise Tax
- Gross Receipt Tax
- Registration or Licensing Fees
The taxes depend upon the size and reach (geographical reach) of the company. The bigger the company is,more are the taxes involved.Merger and acquisition homework help provides in detail information on the taxes involved in case of M&As.
Why do students need help in it?
As we saw, there are numerous factors that are considered before the mergers and acquisitions, and how performing these would benefit the company. No one likes a failed merger, and hence it is very crucial to consider every aspect of it before taking the leap.
More often than not, students do not understand the gravity of the factors involved in making these decisions at corporate level. A single class is not sufficient in helping a student understand how every factor of this helps the company grow. And this is where merger and acquisition homework help comes in very useful for the students.
In this ever progressing world, there are numerous opportunities for everyone to grow. But with numerous opportunities come extremely difficult challenges, which you have to tackle in order to grow. Understanding the complexities of Mergers and Acquisitions is one of them. But you do not need to face them alone. For understanding M&A, merger and acquisition homework help is always a good idea.
 Happy to help!