Mergers, Acquisitions, & Consolidations
Lesson:
Businesses don't always stay independent.
There are three major types of ways this can happen: mergers, acquisitions, and consolidations.
One of your clients is talking about the future of his business.
Here's what you know:
- Shareholders from one firm will receive cash or shares, shareholders of the other firm will keep their shares.
What type of activity is going on?
Answer:
- It's an acquisition.