Biggs led an interactive presentation titled A New Paradigm in Press Operator Training, addressing the dilemma between continued growth in the flexographic printing industry and the lack of trained press operators available to fill open positions.
A private company may also sell itself to a larger public company for the same reasons. Private companies may reconfigure their assets, operations, and relationships with the stockholders in search of higher growth, new technology, business expansion, and greater revenues. Mergers, acquisitions, and corporate restructurings often enable a private company to develop a competitive advantage by increasing flexibility, growth, and shareholder value.
There are a variety of reasons private companies choose to expand through an expansion transaction rather than naturally "organically". First of all, growth happens much faster, virtually overnight in some cases, whereas natural organic growth takes time as its sales grow.
A private-held company may want to eliminate a competitor, enter a new geographic market, introduce a new product line, or bring on the talent and management team that results from an expansion transaction.
Expansion can be accomplished through mergers, asset acquisitions, tender offers or joint ventures. The following methods can be used to help a private company grow without having to create a whole other business entity.
Merger—A private company merger is when two or more private companies combine to form a single entity under a consolidated management and ownership.
A merger can take place through an amalgamation or absorption.
Amalgamation—An amalgamation is when two or more private companies enter into the merger agreement to form a completely new entity. In this type of merger both private companies lose their identity and a new private company is formed to manage the consolidated assets.
Amalgamation tends to occur when both private companies are of equal size. Absorption—Absorption is when the merger occurs between a two entities of dissimilar size. In such a case, the larger private company would absorb the smaller one.
The fusion dissolves the smaller private company and places all its assets in control of the larger private company. Absorption may also take a smaller private company and make it a stand alone operating division or subsidiary of a larger private company.
Acquisition—A private-market acquisition is when a company public or private buys up the stock of a private company. An acquisition may also take the form of an "asset acquisition", where rather than buying the stock, the buyer simply buys the entirety or a portion of the assets of another private company.
The assets may be tangible such as plants and machinery, or intangible assets such as patents and trademarks. The target private company may then continue as a smaller company or dissolve. In this case, the acquiring company simply hires the staff of the target private company, thereby acquiring its talent if that is its main asset and appeal.
The target private company simply dissolves and little legal issues are involved. Tender Offer—A tender offer is an offer by an acquiring company to the general shareholders of a target private company to purchase a majority of the equity at a premium to market value.
Tender offers are an attempt to gain management control through holding the majority of voting equity. Note that tender offers are less common for private companies than they are for publicly traded companies.In an acquisition, one company purchases another business.
You may consider acquiring a business that serves a different geographic area than your current company. Or perhaps you own a manufacturing business and want to expand vertically. In either case, your financial statements will be impacted. Tidan acquires the major office building located Sherbrooke Street West in Montreal’s downtown core, renames it “Edifice Tidan”, and moves its permanent head office to the building, from where it operates to this day.
collection, transportation and processing company SALT LAKE CITY, UT – October 20, – WM Healthcare Solutions, Inc., a subsidiary of Waste Management, Inc., announced that it has acquired Mountain High Medical Disposal.
In a purchase of assets, one firm acquires the assets of another, though a formal vote by the shareholders of the firm being acquired is still needed. There is a one final category of acquisitions that does not fit into any of the four.
When one public company buys another, stockholders in the company being acquired will generally be compensated for their shares. This can be in the form of cash or in the form of stock in the. For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice.