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What Is The Difference Between Merger And Acquisition?

Clients collaborating with offshore banks on Merger and Acquisition projects succeeded in creating additional value by an average of 18% or more. Visit here: https://bit.ly/3tF9O80

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What Is The Difference Between Merger And Acquisition?

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  1. What Is The Difference Between Merger And Acquisition?

  2. On the 19th, Facebook, a social networking service (SNS), acquired the mobile messenger WhatsApp for $19 billion (about 20 trillion won). In response, an American civic group put the brakes on the issue, saying, “There is a risk that Facebook may abuse the personal information of WhatsApp users.” However, Facebook refuted the claim of a civic group, saying, “Facebook and WhatsApp will be operated separately.” The reason Facebook was able to separate WhatsApp was that it acquired WhatsApp, not what it was. Merger and Acquisition are often used in conjunction with mergers and acquisitions, but mergers and acquisitions are different terms. So, what is the difference between mergers and acquisitions?

  3. Acquisitions are when one company acquires control of another company by buying stocks, etc. Therefore, the company that is the target of the acquisition does not disappear. On the other hand, a merger refers to the merging of two companies into one. When two companies merge into one, usually one company remains and the other company disappears. For example, when Facebook acquires WhatsApp, control of WhatsApp remains with Facebook, but Facebook and WhatsApp remain separate companies. But when Facebook merged with WhatsApp, WhatsApp ceased to exist. This is because WhatsApp is merged into Facebook through a merger.

  4. Acquisitions and mergers also differ depending on what stocks the shareholders of the acquired or merged company hold. In the case of a merger, the shares owned by the shareholders remain alive, but in the case of a merger, the shares of the company being merged are lost. Here, the disappearance of stocks does not mean that all of the stocks owned by shareholders become trash. In the case of a merger between companies, the stock of the merged company is exchanged for the stock of the merged company under certain conditions. For example, when Facebook merges WhatsApp, the merger proceeds under the condition that every 100 shares of WhatsApp will be converted into 10 Facebook shares. As a result, a shareholder with 10,000 shares of WhatsApp will own 1,000 shares of Facebook after the merger.

  5. In some cases, stocks are given in cash. It mainly exchanges stock for cash to those who oppose the merger among the shareholders of the merged company. This is because the shareholders of the merged company have the right to demand that their shares be exchanged for money if they are not satisfied with the merger. How can an M&A specialist from an offshore bank help you? What matters in Merger and Acquisition is the process, not the outcome. A successful M&A by offshore Bank must be able to create sustainable value. they believe that M&A should be considered as part of a global growth strategy from a client’s point of view. Until a single M&A is concluded for a customer, a repeatable M&A model must be established by accumulating long-term planning to find opportunities and multiple Merger and Acquisition experiences. In every M&A moment, offshore Bank’s M&A experts provide valuable advice to clients:

  6. • By clarifying the client’s M&A strategy and goal consciousness, the probability of success is increased, and the client’s M&A team is upgraded to support the establishment of a repeatable M&A strategy in the future.• Fact-based quantitative evaluation helps to guard against unreasonable M&as, identify hidden synergies, and conduct business due diligence on a completely new level that can predict the situation after mergers in advance.• With our experienced experience in concluding multiple M&as, we support maximizing the value obtained through M&as by reducing various risks that impede synergy in advance. Clients collaborating with offshore banks on Merger and Acquisition projects succeeded in creating additional value by an average of 18% or more.• Prepare for asset sale in advance and implement a low-risk carve-out program to help ensure the soundness of the surviving company. We support you to maximize the value of your projects, such as investments and partnerships.

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