Even a friendly merger of equals or the acquisition of one company by another can be a complex business transaction. Colorado residents may be particularly interested in a recently proposed merger between two suppliers of two of the world's largest electronics companies -- Samsung and Apple.
The actual technical and legal details of organizing a successful business merger are rather complex. From satisfying the concerns of investors and regulators, to ensuring that proper due diligence has been exercised leading up to the transaction, major mergers and acquisitions need to be handled with care. In fact, when acquiring a new business even a friendly acquisition can prove to be a rather surprisingly challenging task.
Mergers and acquisitions -- also known as M&A -- are essential to economic progress in a capitalist society. Generally, the term "mergers and acquisitions" refers to the consolidation of companies either through the combination of two separate entities to form a new, single company or the purchase of one company by another company in order to incorporate it into an existing entity. M&A activity is often viewed as a sign of economic health.
In a capitalistic society, mergers and acquisition are essential to economic growth. In most cases involving mergers and acquisitions, the corporate strategy is to find solutions that will help create both process and cost efficiencies. Executing the merger and acquisition of a corporate entity, however, can be a tough and complicated task. And, sometimes the process of actually merging two companies into one can take time.
A biopharmaceutical company in Colorado recently announced they are acquiring a privately held company in Italy. Clovis Oncology, based out of Boulder, said they will pay $200 million for the acquisition of EOS S.p.A.