What Does Merger Mean In Terms Of Accountancy?
When an accountant does a merger, does it mean he or she would do long hours?
Corporations - 1 Answers
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Answer 1 :
A merger is a combination of two or more independent business corporations into a single enterprise, usually involving the absorption of one or more firms by a dominant firm. The dominant firm may purchase the other firm's assets with cash or securities, purchase the other firm's stock, or issue its own stock to the other firm's stockholders in exchange for their shares in the acquired firm (thus acquiring the other company's assets and liabilities). In horizontal mergers, both firms produce the same commodity or service for the same market. In vertical mergers, a firm acquires either a supplier or a customer. If the merged business is not related to that of the acquiring firm, the new corporation is called a conglomerate. The reasons for mergers are various: the acquiring firm may seek to eliminate a competitor, to increase its efficiency, to diversify its products, services, and markets, or to reduce its taxes. So if a company was in the process of being merged with another, I would imagine the accountant would need to put in long hours because of tight deadlines. But the hours should revert to normal once the merger is completed, assuming he gets to keep his job. When 2 companies merge, there would then be 2 accountants, and usually 1 leaves.
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