Hart-Scott-Rodino Antitrust Improvements Act of 1976
It is no secret that the United States went through two decades of vigorous antitrust improvements and enforcement. Before the Hart-Scott-Rodino Antitrust Improvements Act was passed, the enforcement agencies weren’t powerful enough to require private economic data from third parties, and the competitors of the merging company, like what we discussed in Williams Act. And...
Friendly Mergers vs. Hostile Deals
We have discussed everything there is to know about mergers and acquisitions in several articles prior to friendly mergers vs hostile deals. In those articles, we have also established the different kinds of mergers and how these affect a company. Some mergers lead a company to the right path to success, while some are simply a means to an end.
With that said, there is...
History and Causes of Merger Waves
Throughout history, giant companies have joined together through mergers but what causes merger waves? In the United States alone, there were six periods of high merger activity. These higher merger activities are often referred to as merger waves as well.
These periods of merger waves are characterized by cyclic activity. This means high rates of fusions followed by...
Type of Merger: Short-Form Merger
A short-form merger may take place in situations in which the stockholder approval process is not necessary. As a continuation of the previous article, we will discuss short-form mergers and how they are structured. We have previously established that there are different types of entity deals such as a stock deal or a merger.
In the previous article (Deal...
Do Diversified or Focused Firms Do Better Acquisitions?
Planning to change or renew your business structure, there are a lot of factors to consider: Do Diversified or Focused Firms Do Better Acquisitions? Additionally, there are also plenty of questions to ask so you can lead your business on the right path to success.
One of those questions is whether or not diversified firms do better acquisitions than focused firms? If...
Types of Preventative Antitakeover Measures
Protecting your company from a takeover is one of the most main priorities when it comes to running a business. In reality, most shareholders and other competitors are looking towards a takeover or antitakeover to hold a majority stock share in a company. This is especially true for most giant companies.
As a CEO and a company owner, it is one of your duties to...
Advantages of Tender Offers over Open Market Purchases
It is one of the biggest questions in the world of stocks and trades – what are the advantages of tender offers over open market? If so, what will it cost? Is there a higher success rate? Which one will cost me less and earn me more?
There are different types of tender offers in the corporate world, but that is another topic to discuss for another day. Today, we...
Tender Offers vs. Long-Form Merger
Until August 2013, there have been two ways to acquire a public target, through a tender offer or through a long-form merger. The former has to do with a two-step transaction, while the latter is a statutory merger that requires the target’s shareholder vote in order to approve the deal.
If you’re planning to acquire a US company, this article shall help you by...
Deal Structure: Asset vs Entity Deals
When it comes to structuring a deal, there are different factors you need to consider. For instance, you might ask yourself: Is an asset deal better than an entity deal?
In this article, we will discuss the difference between the two further and dwell deeper on how each one has its own purpose. First, let’s discuss asset deals.
Asset Deals
There are plenty of...