Firms undertake mergers and acquisitions to create larger companies, maximize shareholder value and strengthen the financial position of the company, according to Investopedia. These deals also bolster the purchasing power of the acquiring company.Know More
Firms engage in mergers and acquisitions to foster efficiency and gain greater market share, states Investopedia. Directors also can increase the size of their company, which gives them more leverage when negotiating with suppliers. Takeovers also allow companies to make staff reductions and save money.
Company leaders who wish to acquire other entities may seek new technologies, reports Investopedia. This allows larger companies to stay ahead and remain competitive. Mergers and acquisitions may expand distribution and marketing operations. Acquiring another company can place an organization in good standing, allowing that company to raise more capital.
There is a distinction between mergers and acquisitions, and the nature of the deal depends on whether it was a hostile or a mutual takeover, explains Investopedia. Mergers occur when two companies of the same stature agree to merge because it would be mutually beneficial to do so. This deal is otherwise known as "merger of equals," and a new entity forms in place of the two companies. However, many mergers are technically acquisitions, because the company being bought agrees to be purchased by the larger company.Learn more about Corporations
As of June 30, 2014, the Hershey Trust Company is the shareholder with the greatest number of shares, making it the owner of the company. The Hershey Company, formerly known as the Hershey Foods Corporation, Hershey Chocolate Corporation and Hershey Chocolate Company, is an investor-owned public corporation.Full Answer >
When it comes to financial reporting, businesses must disclose all the accounting details and the shareholder information for a company. Therefore, the inclusion of any special notes in the notes section of a report is necessary to support the reported data that is contained in the statements.Full Answer >
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Companies qualify for the Fortune 500 by being in the top 500 private or public companies in terms of recent revenue figures, according to Investopedia. The Fortune 500 is compiled annually by Fortune magazine, with companies like Exxon Mobil, Walmart, General Electric and Chevron competing for the top ranking.Full Answer >