M&A is what many of you have heard the term but don’t know what it is. Today we will find out.
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M&A stands for Mergers and Acquisitions.
- Mergers are 2 or more companies. The merger was merged and then formed a new company, in which the two existing companies that merged would jointly own the new company. For example, Company A merged with Company B to form a new company called AB.
- Acquisitions are that one company acquires some or all of the business of another company, with the acquired company remaining the same. It didn’t disband and then formed a new company, which we can divide into two cases.
- Share Acquisition is the acquisition of a buyer who purchases some or all of a company’s shares.
- Asset Acquisition, Business Acquisition is the acquisition of a property, part or part of a business unit.
M&A and the reasons why most companies use this strategy.
- M&A adds growth to companies, mergers and acquisitions, competitors who are in the “same business” will immediately increase their share of the market without having to spend time investing in product development. Another strategy is that mergers with other companies in the “new business” can generate growth from outside the business, also known as Inorganic Growth.
- Once the company is merged, it will be able to use the resources and strengths of each company together, reducing overall operating costs.
- M&A for the survival of a business, such as large companies having high capital, merging with smaller companies that may have good products or knowledge but are experiencing financial difficulties.
M&A examples of brands we know
12 years ago, Kevin Systrom created Instagram, a popular teen social media app, and then just two years later, he decided to sell his business, which at the time had only 13 employees, to Facebook for over 32 billion baht. If we think Kevin Sistrom is good at making tens of billions in two years, Mark Zuckerberg might be better, primarily because of the merger. We call this merger an Asset Acquisition M&A. Similar events happened to Snapchat, but the results are not the same: after Facebook bought Instagram for only a year, Facebook bought Snap Inc. for 100 billion baht, three times more than buying Instagram. It looks like this deal. Evan Spiegel may be right, because earlier this year Snap Inc. raised $1 billion in capital to the NYSE market. That’s 10 times higher than the price Facebook is offering, what we’ve seen is evan Spiegel’s steadfastness in knowing what he’s built and believing in his own business to the end.45 Last year.. Ronald Wayne was the founder of Apple Computer along with Steve Jobs and Steve Wozniak. Venn held 10% of Apple Computer’s shares at the time, but decided to sell the company’s shares after just 14 days of holding them for just 25,600 baht. Although Apple was as bipartisan as Mr. Wayne feared, the company grew by leaps and bounds. To date, it has reached 30 trillion baht. If you think 10% of 30 trillion baht, it’s 3 trillion baht. If Mr. Ronald Wayne still holds Apple shares now, he’s probably one of the richest people in the world. Siström, Evan Spiegel and Ronald Wayne are all figures of the era who created something new for the whole world, even if past decisions may have been the right thing to do or something that cost them the opportunity to make huge profits. But that’s probably the best decision, given the conditions and factors at the time, and perhaps the decision to sell the business to someone else would also be the right decision if the business had reached a saturation point. But if we’re still confident that our business is still growing, it’s probably better not to sell the business to others and try to keep our own business growing for M&A valuations. Make a reasonable deal. We have sufficient teams and resources to provide this service. View our service details or contact Line ID : plusitiveaccounting
Articles by longtunman.com
Compiled by Plusitive Accounting Team
