All about mergers by nandani

 The idea is to become big , you want to expand and grow.

Be it private or public company  , using personal money to grow and expand is now being eliminated Companies could be in a situation where they can franchise out , but most of the companies today pursue to merge to optimise your ability to do better business at this cost.
They directly aim at the scale of business, the bigger you are , the bigger share you have , more you could dominate the price and consumers , basically control the market.



In this Article we would read in brief about mergers.
In this rapid growing and highly competative world , everyone is aiming big and high , and now with the voracious competition , every company want to multiply their scale of size and economy .
Merger now has been inculcated as an option to be opted for in their expanding and growing tool.
As, merger acts as a multiplication to current assets and profit.
A lot happens when a merger occurs including certain employees getting let go , certain decisions being made redundant or reorganisation of business assets.
Mergers of companies can be uncertain but generally they end up being beneficial for the resulting single company. When one company and another company see each other as mutually beneficial so ,they can both engage in merger talks to form a united company working together with both of their assets under a similar or new name as a new entity .When two companies become a new company together the stocks of both companies merge into the new in mergers. leadership from both companies generally comes together to make decisions. Mergers and acquisitions can be uncertain for employees of the merging companies as it generally means changes to how you working possibly even your employment when company merge HR division or other staff that don’t fit into the new business model .now for stockholders and investors mergers and acquisitions are generally a good thing and can result in rising stock prices or quick returns on recording in progress.
merger , typically is marriage  in corporate heaven ,
mergers is basically two firms and companies come together with the intention of drawing up some synergies .
The process of merger cannot be done without the interference of law , the idea is not confined between the companies but it needs law interference as well.
In order to successfully merge two companies , it needs high court approval and a list of steps and lined procedure .
The Companies Act , 1956 has provisions relating to mergers.
The Official Liquidator of the Central Government also has a part to play in this process .
Section 390 to 395 of the Companies Act speaks all about merger and other company ventures.
There are five types of company mergers
All these types of merger are categorised by their purpose , function and relation between the companies.
1 – Conglomerate
2 – Horizontal merger
3 – Market Extension merger
4 – Product extensions merger
5 – Vertical merger