Concept of Merger and Acquisition in Agribusiness

Formation of merger

Concept of Merger and Acquisition in Agribusiness is essential for Financial Manager. There are three fundamental legal procedures that can be used by one firm to acquire another company:

1. Merger or consolidation
2. Stock acquisition
3.   Asset acquisition.

The company that acquires another company is called the bidder, and the company that is purchased is called the target company.

Merger or Consolidation

A combination of companies may take the form of either a merger or consolidation.

• A merger is characterized as a combination of two or more firms in which the identity of the acquiring firm is retained by the resulting firm.
• Two or more businesses are merged in a restructuring to create a single company. When the companies are of similar size and market strength, restructuring might be used.
• A merger is a full absorption of one corporation by another, in which the merging company maintains its name and as a separate entity, the acquired company ceases to exist.

Types of merger

Before going to invest, the Concept of Merger and Acquisition in Agribusiness is essential. Four forms of mergers can be defined as:

1. Horizontal Merger

A horizontal merger happens when in the same line of business, i.e. manufacturing the same commodity, one corporation combines with another. A bank may take the form of a merger with another bank, for example.

2. Vertical merger

A vertical merger happens when one of its suppliers is purchased by a manufacturer.

3. Congeneric Merger

It includes related companies but not producers in a producer-supplier relationship (vertical) of the same product (horizontal) or the business.

4. Merger of Conglomerate

A Conglomerate merger happens when a new business company is incorporated into unrelated entities.

Stock acquisition

A second way to purchase another company is to simply buy the voting stock of the company through an exchange of cash, stock shares, or other securities. A tender offer will do this. A tender offer is a public offer by one company to buy the shares of another firm directly.

Asset Acquisition

By purchasing any or all of its properties, a company may absorb another company. It does the same thing as purchasing the company.

Acquisition Types

Below are the main forms of acquisition:

1. Acquisition Horizontal

This is the buying of a company in the same field as the bidder.

2. Acquisition in Vertical

A vertical acquisition includes companies at various stages of the manufacturing process. The purchase of a travel agency by an airline corporation will be a vertical purchase.

3. Acquisition by Conglomerate

If the bidder and the target business are not related to each other, the transaction is considered an acquisition of a conglomerate.

Takeover

A takeover is a general and imprecise term referring to the transition from one group of shareholders to another of ownership of a company.

So, A business firm especially an agribusiness firm should have the Concept of Merger and Acquisition in Agribusiness.

#agro_research_international

Contact: 

If you have any questions, thoughts, or suggestions, please contact us or join our social media networks. 

Email us:  [email protected], [email protected]

Feel free to comment:

Your email address will not be shared with anyone.

Name *

First

Last

Email *

Phone

Comment or Message *

Name

Submit

Join our LinkedIn group

https://www.linkedin.com/groups/13943442/ 

Join our Facebook group

https://www.facebook.com/groups/agribusinesseducationandresearchinternational

You may read:

Agribusiness operational decision-making tools – Agribusiness Education and Research International

What is Human Resources Development for Agribusiness? – Agribusiness Education and Research International

The Dollar Crisis and Agro Enterprise Management – Agribusiness Education and Research International

https://agribusinessedu.com/why-is-market-information-important/

What is the scope and importance of Agricultural Marketing? – Agribusiness Education and Research International

Agribusiness value chain in Southeast Asia – Agribusiness Education and Research International

Drivers of Competitiveness for Agribusiness in South Asia – Agribusiness Education and Research International

Organizing is critical in Agribusiness and Business Management – Agribusiness Education and Research International

 You May Read:     What are the Characteristics and Traits of an Entrepreneur?   – Agribusiness Education and Research International

You may read:   Agribusiness how it works? – Agribusiness Education and Research International

You may read: Covid -19 Pandemic Impact on Agribusiness – Agribusiness Education and Research International

You may read:  What is Agribusiness? – Agribusiness Education and Research International

 You may read:   Agribusiness in Bangladesh – A Basic Introduction – Agribusiness Education and Research International

You may read: Organic Agriculture Introduction – Agribusiness Education and Research International

You may read: What is Sustainable Agriculture? – Agribusiness Education and Research International

What is Permaculture? – Agribusiness Education and Research International

E-Commerce and Supply Chain Finance – Agribusiness Education and Research International

What are L/C operating processes under structured customs and practices and documentary credit (UCPDC)? – Agribusiness Education and Research International

Technology Application in the Financial Section of Agribusiness – Agribusiness Education and Research International

What is Supply Chain Finance? – Agribusiness Education and Research International

Role of IT in supply chain management in Agribusiness after Covid 19 Pandemic   – Agribusiness Education and Research International

What is an agile supply chain in Agribusiness? – Agribusiness Education and Research International

What is Supply chain Management Networks in Agribusiness? – Agribusiness Education and Research International

What is Strategic sourcing for supply chain management strategy in Agribusiness? – Agribusiness Education and Research International

What is the supply chain management process in Agribusiness? – Agribusiness Education and Research International

What is Supply Chain Management in Agribusiness? – Agribusiness Education and Research International

Supply chain management and Agribusiness – Agribusiness Education and Research International

Factors Affecting Supply Elasticity – Agribusiness Education and Research International

Supply Affecting Variables or Supply Determinants – Agribusiness Education and Research International