Mergers, acquisitions and joint ventures
Companies cooperate for many reasons. Joint ventures range from shared assets (e.g. oil pipelines), through jointly controlled operations (as with the Airbus consortium), to shared control of a third entity. Equity investments range from a few shares purchased to show commitment to a supplier or distributor, to outright acquisition in order to acquire control of assets or market share, or a merger which replaces two companies with one new enterprise. A company might also make loans to another, usually to promote some mutual interest. You can assess such opportunities using the techniques discussed elsewhere in this book, especially in Chapter 6.
Accounting for such mergers, acquisitions and joint ventures, ...
Get The Definitive Guide to Business Finance: What smart managers do with the numbers, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
