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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 668 |
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Because a merger should always be economically viable and profitable before it takes place there should be no great costs associated that will not be made up in the future. However, even a good accounting team can misread the market and cause great cost. Maybe a company's future is not as strong as predicted or the company merger does not go smoothly...
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These things can cause unforeseeable costs that may be unrecoverable.
Companies can be purchased in two ways, with cash or by stock. Companies purchased with cash are pretty straight forward where a company offers share holders a price for each share. The price is usually higher then the current stocks quote to entice all to sell...
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