Political Science 1020E Lecture Notes - Lecture 8: Planned Economy, Country Risk, Net Present Value
20 Nov 2016
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Document Summary
The purchase of one firm by another. The combination of two or more firms into a new legal entity in which one entity keeps their identity while the others lose their identities. A blending together of two or more entities where both lose their identities and a new separate entity is born. Both (all) sets of shareholders must approve the transaction. Combining the related activities of separate businesses into a single operation to lower cost. Exploiting common use of a well-known brand name. Extend a firm"s competitive scope within the same industry. Can aim at either full or partial integration. Favours capitalizing on a portfolio of businesses that are capable of delivering excellent financial performance. With high growth potential but are short on investment capital. The primary motive should be the creation of synergy. Created from economies of integrating a target and acquiring a company.
