Issuer Consulting provides full advisory and consulting services for mergers and acquisitions for both public and private companies. To understand the benefits of choosing Issuer Consulting, it is important to first understand mergers and acquisitions.
A merger occurs when two companies agree to combine and become one company. As a result of a merger, both companies surrender their shares; shareholders then exchange their old shares with shares of the newly formed company. Common Stock shareholders have the right to vote on mergers or acquisitions. Although some Preferred Stock classes may also have voting rights. Before investors can exchange stock, a majority of shareholders must approve the merger.
An acquisition is not quite the same as a merger. In an acquisition, one company buys another company, with stock, cash, or both. All of the target company’s stock is surrendered to the buyer. Rather than combining with another company (a merger), acquisitions occur when one company purchases another company. An exchange of shares does not take place; instead, the target company’s stock becomes untradeable, if public, and the target company’s shareholders receive shares and/or cash equivalent to the value of those shares.