Mergers and Acquisitions, accounting homework help
I need a memo regarding the following explaining the types of acquisitions and what the main characteristics are. It should be approximately 500 – 600 words:
As a member of JIM’s acquisition team, you have been asked to look at various forms of acquisitions. Currently, it is JIM’s plan to acquire Mason Machining, Inc. by paying $6,500,000 in cash, but management would like to know what forms of acquisition are possible. Your research has determined that there are 3 types of acquisitions/reorganizations. They are as follows:
- Type A—merger or consolidation
- Type B—stock for stock
- Type C—assets for stock
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Write a memo:
- Explaining each of these types of acquisitions, and
- What are the main characteristics of each?