Is there anyone can explain which suitable methods to apply merger, acquisition, consolidation, and SPE as well as the different between acquisition method and consolidation process. It’s actualy hard to have overview of this topic. Thank so much!
Dear Hoa:
In my opinion, The first one you want to mention is that it 's talking about the characteristic of the two companies after such actions. For example, there is only one company after the M&A and it is a new legal entity, the two old companies is history, the same logic when you apply to other method. This topic focus more on this type of question " what is the significant affect of the company’s investment on its earning and financial position?". For example, if the significant is not big enough (less than 20%), we just view it as a financial asset. But when the holding increasing (more than 50%) or the company can strongly control the target companies, it could easily manipulated earning or adjust to get farvorably financial position. You could search for the case Minh Phung - Epco in Viet Nam or Enron using SPE.