Merger, Amalgamation, Acquisition, Take Over - PPT Download

Please provide the definitions and differences between the following terms as I am having trouble distinguishing between them; they all seem similar to me. Kindly respond only if you are confident about the term, as I am already confused.

1. Merger
2. Amalgamation
3. Acquisition
4. Takeover

Additionally, could you explain the distinctions between the following:

1. Special purpose vehicle
2. Joint venture

Thank you,
Saji

Special purpose vehicle, even I do not know. If you find the answer, please update me as well. Regarding the definitions for the rest, I am attaching the PPT. Kindly see if it is useful for you or not.

Special Purpose Vehicle/Entity (SPV/SPE) means:

1. Also referred to as a "bankruptcy-remote entity" whose operations are limited to the acquisition and financing of specific assets. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.

2. A subsidiary corporation designed to serve as a counterparty for swaps and other credit-sensitive derivative instruments. Also called a "derivatives product company."

Note: Thanks to Enron, SPVs/SPEs are household words. These entities aren't all bad though. They were originally (and still are) used to isolate financial risk. A corporation can use such a vehicle to finance a large project without putting the entire firm at risk. The problem is, due to accounting loopholes, these vehicles became a way for CFOs to hide debt. Essentially, it looks like the company doesn't have a liability when they really do. As we saw with the Enron bankruptcy, if things go wrong, the results can be devastating.

I am also attaching a PDF file for merger and acquisition. Thank you for replying.

SAJI :P

Can you all be more specific in differentiating between Takeover and Acquisition? These words are quite confusing, so please help me out.

Hi, thanks a lot for the files on M&A. Can anyone also help me get material on the MBA VTU syllabus for M&A valuation problems and the takeover chapter, please?

There are no books in India that I have seen where the differences among amalgamation, absorption, external reconstruction, and merger have been clearly explained. A picture or PowerPoint presentation would be very useful for students like me.

There are different types of rules and provisions present. The authors of the books have contradicted each other, which is confusing.