On the surface, the distinction in meaning may not really matter, since the net result is often the same- two companies (or more) that had separate ownership are now operating under the same roof, usually to obtain some strategic or financial objective. Yet the strategic, financial tax and the even cultural impact of the deal may be very different, depending on which transaction is made.
The task of acquiring another company invites skills of experts for expeditious and successful completion of the transaction adhering to all formalities and procedures as required under the law, accounting convention and practices. Moreover in-house talents available with an acquirer company with its executives are required to be supplemented with advice from outside experts. Thus a number of agencies and their role assume significance in the merger
1. Advisors : The advise of Chattered Accountants or Financial Consultants, Merchant Bankers, Stock Brokers and Legal Consultants are important.
On January 31, 2006, adidas closed its acquisition of Reebok International Ltd. The combination provided the new adidas Group with a footprint of around €9.5 billion ($11.8 billion) in the global athletic footwear, apparel and hardware markets.