An acquisition is where one company (the predator) buys the share capital of another company (the target or victim); creating a parent and subsidiary in a group. Both companies continue to exist as legal entities.
　　A merger is where two companies of similar size cancel their share capital and pool their net assets together into a new entity. The new entity then issues shares to the previous shareholders in an agreed ratio.
　　For financial management whether the transaction is classified as an acquisition or as a merger is not usually critical. It is often a more important distinction for financial reporting where merger accounting tends to report better results than acquisition accounting—although International Financial Reporting Standards no longer permit merger accounting due to past abuses.
　　Advantages of Acquisitions
　　Speed — often quicker than organic growth.
　　Entry costs — if the cost of entering a new market is high it may be better to acquire a business already operating in that market.
　　Barriers to entry — acquisition may be the only method of entry into a new market.
　　Risk — organic growth may be riskier than acquiring an existing business.
　　Undervaluation — "asset stripping" may be possible in an acquisition.
　　Disadvantages of Acquisitions
　　Cost — the control premiums paid over the existing market price are considerable, typically over 40%.
　　Shareholder wealth — if the bidder pays too high a price for the target company this will reduce the bidding company shareholders' wealth.
　　May attract the attention of regulatory authorities if there are concerns about damage to the public interest.

 　　ACCA官方微信　　　　
　　掃一掃微信，*9時(shí)間獲取2014年ACCA考試報(bào)名時(shí)間和考試時(shí)間提醒
　　
　　高頓網(wǎng)校特別提醒：已經(jīng)報(bào)名2014年ACCA考試的考生可按照復(fù)習(xí)計(jì)劃有效進(jìn)行！另外，高頓網(wǎng)校2014年ACCA考試輔導(dǎo)高清課程已經(jīng)開通，通過針對(duì)性地講解、訓(xùn)練、答疑、?？迹瑢?duì)學(xué)習(xí)過程進(jìn)行全程跟蹤、分析、指導(dǎo)，可以幫助考生全面提升備考效果。
　　
　　報(bào)考指南：2014年ACCA考試備考指南
　　免費(fèi)題庫：2014年ACCA考試免費(fèi)題庫
　　考前沖刺：ACCA備考秘籍
　　高清網(wǎng)課：ACCA考試網(wǎng)絡(luò)課程