Forms of Acquisitions Quiz

1. Merger or consolidation, 2. Acquisition of stock, 3. Acquisition of assets

In a merger, one firm absorbs another while retaining its name and identity. In a consolidation, an entirely new firm is created with the termination of the legal existence of both the acquiring and acquired firms.

Pros: 1. No shareholders' meetings or votes required, 2. Direct dealing with shareholders via tender offer. Cons: 1. Potential unfriendliness leading to additional costs, 2. Possibility of minority shareholders holding out, 3. Complete absorption may still require a merger.

<p>Acquiring all the assets of another firm by formal vote of the selling firm's shareholders.</p> Signup and view all the answers

<p>Acquiring assets requires a formal vote of the selling firm's shareholders, which can provide a more structured and controlled process compared to the direct dealing with shareholders in stock acquisition.</p> Signup and view all the answers