5 Questions
What is the difference between a merger and an acquisition?
In a merger, two companies come together to form a third, while in an acquisition, one company simply buys another.
What was the total value of mergers and acquisitions reported by Thomson Financial in 2006?
$3.5 trillion
Why do many companies make investments in mergers and acquisitions?
To expand operations into new markets or new industries
What did Google acquire for $1.65 billion?
YouTube
How has the recent recession impacted the trend of mergers and acquisitions?
Reduced the trend
Study Notes
Mergers and Acquisitions
- A merger is a combination of two or more companies into a new entity, while an acquisition is a purchase of one company by another.
- The total value of mergers and acquisitions reported by Thomson Financial in 2006 was $3.9 trillion.
- Many companies make investments in mergers and acquisitions to expand their product or service offerings, increase market share, and reduce competition.
- Google acquired YouTube for $1.65 billion.
- The recent recession has impacted the trend of mergers and acquisitions, with a significant decline in deal value and volume, as companies became more cautious and focused on cost-cutting and debt reduction.
Test your knowledge of the reporting of consolidated financial statements with this quiz. Explore concepts such as acquisitions, controlling interest, and the consolidation process.
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