Corporate Mergers and Acquisition
In today’s ever-changing marketplace, mergers and acquisitions of corporations take place every day.
A corporate merger is basically the combination of assets and liabilities of two separate firms into a single business entity.
There is usually an exchange of stock where one firm issues new shares to the shareholders of the other firm at a certain ratio.
This usually takes place between two equal companies in size, wealth and industry.
Corporate acquisition financing is usually where a larger corporation acquires a smaller corporation in the same industry.
In order to facilitate these transactions, companies often need the right financing vehicle of either debt or equity in place to execute this financing successfully.