Miro Zecevic

Mergers and Acquisitions Mergers and acquisitions (M&A) are defined as a combination of companies. When two companies combine together to form one company, it is termed as Merger of companies. While acquisitions are where one company is taken over by the company. In the case of Merger, the acquired company ends to exist and becomes part of the acquiring company. In the case of Acquisition, the acquiring company takes over the majority stake in the acquired company, and the acquiring company continues to be In existence. In short one in acquisition one business/organization buys the other business/organization. Definition: Merger – When two companies combines together to form one company, it is termed as merger of companies. The two companies end to exist and new company is formed. Acquisition – In case of acquisition, the acquiring company takes over the majority stake in the acquired company, and acquiring company continues to be in existence....

Reverse Merger A reverse merger is a  merger  in which a private company becomes a public company by acquiring it. It saves a private company from the complicated process and expensive compliance of becoming a public company. Instead, it acquires a public company as an investment and converts itself into a public company. Advantages of Reverse Merger The private company becomes a public company at a lesser cost and gets listed on the exchange without IPO. This type of merger does not create a negative impact on the competition in the market. The chances of reverse  mergers  being put on hold due to negative impact are very less. It helps in saving of taxes of private companies. Disadvantages of Reverse Merger             Lawsuits for various reasons are very common during the reverse             Often the promises made during reverse merger do not come...