How can companies consolidate or cooperate to pursue business opportunities?
Mergers and acquisitions are hotly debated opportunities for some businesses. But other options may be more beneficial than a costly merger or acquisition, depending on the circumstances. The following list includes types of business consolidation and cooperation: Mergers — In a merger, both businesses wind down as separate entities. Usually, a new company is formed and the assets and liabilities of the original businesses are transferred to the new company. Mergers can be costly both financially and in impact on productivity. Companies involved in mergers will want to complete negotiations, prepare for divestitures (if necessary) and complete due diligence. Acquisitions — Acquisitions are also known as “takeovers” or “buyouts” and involve one business buying the possessions of another business. Acquisitions can also be expensive to complete. Most acquisitions involve the following steps: negotiations, due diligence, purchase and sale, and portfolio transfers. Sellers are usually requi
