Prepare

These are the different types of mergers. Use the images and research on
your own to explain the meaning. Keep in mind the following aspects: (a)
The nature of the companies (different products, same products, etc) (b)
The purpose or goal of merging and (c) An example.

1.

A.The
nature in
which these companies are developed between companies from the same
industry. In this case, is a merger that occurs between firms that work on the
same space, in other words they are competitors that offer the same goods or
services.

B. The purpose of why these merges occur, is to be able to create a powerful

company instead of being two competitors.

C. A great example of this type of merge is Facebook,whatsapp,instagram.

These companies were independent social media and after some years they
were all integrated into one big social media. Nevertheless they still remain
independent from one another but are under Facebook.

2.

a)

Both companies provide different supply chain for a common good or

service, with the goal of rapid growth
b) The goal is to create a business which ramos uo quick and have a
good growth
c) Disney and pixar

3.

A.

The nature of these companies takes place between two companies that sell
the same product but work in different markets.
 B. The purpose of these companies is to enter into a bigger market
extension, in other words to be able to access a bigger market in order
to ensure a bigger client base
C. A example of these will be the eagle bancshares inc and RBC Centura ,
this merge helps to growth in operations over the North America
market.

4.

a) Both companies are established in the same market but provide

different products.
b) The purpose is to have a bigger customer base and bigger profits.
c) Pizza Hut and Pepsi

1.
 a) Both companies are completely are developing in completely
unrelated business activities.
b) It’s done for bigger market shares and cross selling opportunities.
The belief is that the stakeholders will get benefited for making a
conglomerate.
c) Amazon, meta and Warner media

What is a joint venture? What are the differences between a merger and a joint
venture?

The difference is that in a joint venture the two companies remain being
independent, while in a merger they are constituted into a same new
company.

Apply

Can you tell the differences between mergers and acquisitions?

1. Use these words to complete the statements. You can use each
more than once: acquires, acquired, merged, acquisition, merging,
merger.

● Merging is the process where two or more companies agree to come together and
form a new company; acquisition is the process by which a financially strong
company takes over a less financially strong company by buying more than 50% of
its shares.
● merging_is a strategic decision made after careful discussion and planning
between the companies going to be merged. Hence, there are fewer chances of a
chaotic atmosphere after Merging_. The acquisition_is also a strategic decision, but
in most cases, the decision is not mutual. Hence, there is a lot of hostility and chaos
after a-an acquisition___ has been made .
● Companies that are merged_usually consider each other of equal stature, and
hence they help each other out to create a synergy. In the case of a-an aquisition _,
the company that acquires__ imposes its will on the adquired company, and the
acquired__company is stripped of its freedom and decision-making. 
● Since the _merging requires a whole new company to be formed, it needs many
legal formalities and procedures to be followed. The adquisition_doesn’t have
many legal formalities and paperwork to be filled as compared to the merger