338 Transaction: The acquiring company
purchases the stock of the target from the target's shareholders for cash, stock securities, or other consideration and elects pursuant to IRS Code Section 338 by the 15th day of the ninth month after the month of acquisition to treat the transaction as if the target company sold its assets for a price equal to their fair market value.
Human capital theory posits that a CEO has an individual repertoire of skills, knowledge and resources that can explain both his or her decision to depart or remain, as well as the likelihood that the acquiring company
will wish to retain him or her.
In addition, get written consent from the to-be-acquired company's insurer for assignment of the coverage to the acquiring company
During a merger, it's important that the risk manager from the acquiring company
confer with his counterpart to determine the other company's perception of risk, what model they have been using, whether they have a more conservative posture toward limits and retained losses, and if" they have identified and dealt well with all their exposures, said Austin, now principal and consultant at Austin & Stanovich Risk Managers LLC, Douglas, Mass.
The aggregated performance of the acquiring company
does not solely reflect the success of the acquisition; this measure could also include the contributions of other business lines.
Mergers and acquisitions Acquiring company
Company acquired Date Jean Coutu (Longueuil.
Then there's the loss of focus on the part of the acquiring company
that may drive down productivity.
Help reduce any "culture shock" by identifying key company or country cultural characteristics of the acquired company and the acquiring company
to assist in communications.
The major difference is that once the mutual is demutualized, the owner of all the stock will be the acquiring company
rather than the open market.
Often, the acquiring company
has a better credit rating and therefore a lower cost of funds and it can actually enhance profitability by paying back the acquired company debt.
In 1983, the SEC issued a Staff Accounting Bulletin in which it determined that the push-down method of accounting should be used to redetermine the basis of assets held by a company which is acquired, as long as the acquired company becomes substantially wholly owned by the acquiring company