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A horizontal merger is when competing companies merge?companies that sell the same products or services. The T-Mobile and Sprint merger is an example of a horizontal merger. Meanwhile, a vertical merger is a merger of companies with different products, such as the AT&T and Time Warner combination.
Summary. A type A Reorganization is a tax-free merger or consolidation. Generally, in a merger, one corporation (the acquiring corporation) acquires the assets and assumes the liabilities of another corporation (the target corporation) in exchange for its stock.
In merger, one cooperative is absorbed by another, which retains its corporate identity. In a consolidation, a new cooperative is formed and both of the existing cooperatives disappear.
Parts of merger and acquisition contracts ?Parties and recitals. ?Price, currencies, and structure. ?Representations and warranties. ?Covenants. ?Conditions. ?Termination provisions. ?Indemnification. ?Tax.
A Type A reorganization must fulfill the continuity of interests requirement. That is, the shareholders in the acquired company must receive enough stock in the acquiring firm that they have a continuing financial interest in the buyer.
A type A Reorganization is a tax-free merger or consolidation. Generally, in a merger, one corporation (the acquiring corporation) acquires the assets and assumes the liabilities of another corporation (the target corporation) in exchange for its stock.
Merger: A merger is fundamentally the combination of two or more business entities in which only one entity remains. The firms are typically similar in size. (Company A + Company B = Company A). Consolidation: A consolidation is a combination of more than one business entity; however, an entirely new entity is created.
In a typical merger, the assets and liabilities of T are transferred to P, and T dissolves by operation of law. The consideration received by T's shareholders is determined by a merger agreement. A consolidation is a transfer of assets and liabilities of two or more existing corporations to a newly created corporation.