IF AN INVESTOR OWNS MORE

WHEN TWO OR MORE Control -It means having the THAN HALF OF A COMPANY'S
COMPANIES JOIN Acquirer- Gets Acquiree - it is the authority to make decisions VOTING RIGHTS, THEY
CONTROL IT. THEY ALSO HAVE
TOGETHER TO BECOME control of one or controlled about how a business runs A STAKE IN HOW WELL THE

CHAPTER 1-2 ONE BIG COMPANY,

CONTROLLED BY ONE
more companies. business.
financially and operationally,
so you can gain advantages
COMPANY DOES AND CAN
INFLUENCE HOW MUCH MONEY
THEY MAKE FROM THEIR
OF THEM. from its actions. INVESTMENT.

BUSINESS ACCOUNTING ACCOUNTING ACCOUNTING

INVESTOR
COMBINATION POV POV POV
Horizontal POV - Two or
more businesses in the
same field that used to
compete against each other.
BUSINESS LEGAL POV Based on the
POV corporation code
Vertical Integration -
Two or more businesses BUSINESS
BUSINESS Statutory Mergers - one
in the same industry, but POV COMBINATION LEGAL POV
entity will remain while
at different stages in how the other will stop
they sell their products. operating
BUSINESS LEGAL POV
POV
Conglomeration - Two or
more things from completely Statutory
different or unrelated
industries.
Acquisitions - both
SHAREHOLDER WITH < SHAREHOLDER WITH entities will form a
SHAREHOLDER WITH <
51% VOTING RIGHTS 51% VOTING RIGHTS < 51% VOTING RIGHTS new entity

He calls the shots on money

He can make the most He can choose who works in
and operations because of a
important decisions in important roles at the
deal, and he owns over half
board meetings because company and can also
the company through an
his vote counts for more change their jobs if he wants
agreement with other
than anyone else's. to.
investors.