Differences between Acquisition and Merger Strategies

Illustrates the differences between Acquisition and Merger Strategies?

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Acquisition and Merger Strategies are as follows:

a. Acquisitions and Mergers are a much-used strategic plan. They are especially suited for conditions where partnerships and alliances don’t go far enough in providing an organization with access to the required capabilities and resources.

b. A merger stands for pooling of equals, with the recently created company often taking on a new name. An acquisition is a mixture in which one company, the buyer, purchases and absorbs the operations of another, the buyers.

c. The dissimilarity between an acquisition and a merger relates more to the details of management control, ownership, and financial arrangements than to competitive and strategy benefit. The resources, competitive capabilities and competencies of the newly created enterprise end up much the similar whether the mixture is the result of merger or acquisition.

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