Joint venture is the co operation of two or more individuals or business in which each agrees to share profit, loss and control in a specific enterprise.
FEATURES OF JOINT VENTURE :
• Joint venture is a short duration special purpose partnership.
• Joint venture does not follow the accounting concept 'going concern'.
• The members of joint venture are known as co-ventures.
• Joint venture is a temporary business activity.
• In joint venture, profits and losses are shared in agreed proportion. If there is no agreement regarding the distribution of profit, they will share profit equally.
• Joint venture is an agreement for polling of capital and business abilities to be employed in some profitable venture.
THIS IS $AFPW HERE MEANING Merger •
A transaction where two firms agree to integrate their operations on a relatively co-equal basis because they have resources and capabilities that together may create a stronger competitive advantage.
•The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock
•Example: Company A+ Company B= Company C.
Mergers, acquisitions and joint ventures
Published on January 05,2016
?Sanjeev BagalSenior Manager Procurement & Production ,SCM, Logistics and Commercial
1. MERGERS, ACQUISITIONS AND JOINT VENTURES s
2. MEANING Merger •
A transaction where two firms agree to integrate their operations on a relatively co-equal basis because they have resources and capabilities that together may create a stronger competitive advantage.
•The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock
•Example: Company A+ Company B= Company C.
3. ACQUISITION
• A transaction where one firms buys another firm with the intent of more effectively using a core competence by making the acquired firm a subsidiary within its portfolio of business
• It also known as a takeover or a buyout
• It is the buying of one company by another.
.In acquisition two companies are combine together to form a new company altogether.
• Example: Company A+ Company B= Company A.
4. MERGER ACQUISITION COMPANY A COMPANY A COMPANY BCOMPANY B Company A and Company B together form the new Company C Company A buys Company B Company A
MERGER ADVANTAGES
. Merging of two organization in to one.
It is the mutual decision.
Merger is cheaper to go Public than IPO
Through merger shareholders can increase their net worth.
Buying one organization by another.
It is faster and easier transaction.
The acquirer does not experience the dilution of ownership.
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