Mergers Capital

The term M & A means the economic processes that lead to integration of business and capital. This happens at the micro and macro levels. M & A of the English language Mergers and Acquisitions, translated Mergers and Acquisitions. As a result of the transaction A new company. That is, m & a – approach to identifying mergers and acquisitions. It is therefore logical to consider two processes – Mergers and Acquisitions. Merger. It's all pretty self-explanatory.

Combining two or more companies, which could result in a new legal entity. Types of merger: 1) The merger forms – the company that made the merger shall cease to exist as a legal entity. The new company taking over control all the assets and liabilities. 2) The merger of assets – such a union, which transmits the owners of companies in the authorized capital of all the rights of companies. In this case, the contribution may act only the rights of control. Absorption.

This is such a deal, which aims to establish control over the business entity. Implemented through the purchase of more than 30% of the share capital. But it is completely maintained judicial independence society. Let us consider the classification of basic types of mergers and acquisitions. Existing types depending on the nature of integration: A) horizontal merger. Combining the two companies that offer products of the same species. Benefits: increased development, reducing competition. B) a vertical merger. The merger of several companies, including one – raw material supplier to another. Advantages: lower production costs. Profit increases. B) Reorganization LLC. The merger of several companies that are involved in various business fields. Thus in the world is about 15,000 transactions in m & a. Connection – It's one of many opportunities for investors to manage their capital personally. F) Circular integration. This is one way to invest their money literate funds.

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