Please give the definition and difference between the following as I am not be able to differentiate between them as all look like the same, please respond if you are sure about the term as I am already confused.
Merger, Amalgamation, acquisition, take over
&
Special purpose vehicle, joint venture.
Thanks
Saji
From India, Gurgaon
Merger, Amalgamation, acquisition, take over
&
Special purpose vehicle, joint venture.
Thanks
Saji
From India, Gurgaon
Special Purpose Vehicle/Entity (SPV/SPE)
it means
1. Also referred to as a "bankruptcy-remote entity" whose operations are limited to the acquisition and financing of specific assets. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.
2. A subsidiary corporation designed to serve as a counterparty for swaps and other credit sensitive derivative instruments. Also called a "derivatives product company."
Note
Thanks to Enron, SPVs/SPEs are household words. These entities aren't all bad though. They were originally (and still are) used to isolate financial risk.
A corporation can use such a vehicle to finance a large project without putting the entire firm at risk. Problem is, due to accounting loopholes, these vehicles became a way for CFOs to hide debt. Essentially, it looks like the company doesn't have a liability when they really do. As we saw with the Enron bankruptcy, if things go wrong, the results can be devastating.
attaching PDF file for merger and acquisition
Thanks for replying
SAJI
:P
From India, Gurgaon
it means
1. Also referred to as a "bankruptcy-remote entity" whose operations are limited to the acquisition and financing of specific assets. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.
2. A subsidiary corporation designed to serve as a counterparty for swaps and other credit sensitive derivative instruments. Also called a "derivatives product company."
Note
Thanks to Enron, SPVs/SPEs are household words. These entities aren't all bad though. They were originally (and still are) used to isolate financial risk.
A corporation can use such a vehicle to finance a large project without putting the entire firm at risk. Problem is, due to accounting loopholes, these vehicles became a way for CFOs to hide debt. Essentially, it looks like the company doesn't have a liability when they really do. As we saw with the Enron bankruptcy, if things go wrong, the results can be devastating.
attaching PDF file for merger and acquisition
Thanks for replying
SAJI
:P
From India, Gurgaon
can u all be more specific in differentiating btw Takeover and aquisation . As these word are quite confusing. so plz help me out
From Australia
From Australia
hai thanks a lot 4 the files of M&A....and anyone can also help me to get material of MBAVTU syllabus of M&A valuation problems..and takeover chapter plz.......
From India, Bellary
From India, Bellary
There are no book in india i have seen where difference among the amalgamation,absorption,external reconstruction,marger has been cleared. a picture/power point dump is very useful for the students like me.
There are differenent types of rules and provison are there. auther of the books has contradicted to each other. it is confusing
From India, Chandigarh
There are differenent types of rules and provison are there. auther of the books has contradicted to each other. it is confusing
From India, Chandigarh
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