23

Corporate Combinations

OBJECTIVES

To discuss various forms of corporate combination and the motives behind such combination

To show how the consideration value is determined — the amount that the acquiring company pays to the target company

To explain the modes of payment of the consideration value

To delineate merger and take-over regulations in India

To show the accounting procedures of corporate combination

To explain divestitures, spin-offs and equity carve-outs

One of the key areas in financial management deals with expansion. Expansion takes two forms. One is internal expansion where a firm expands gradually over time in the normal course of business, in order to meet increasing demand for its products through the acquisition of ...

Get Fundamentals of Financial Management, Third 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.