Business mergers and acquisitions

Buying business that is already in operation represents less risk and no need to wait until the business will gain momentum, safer investments. But when buying already existing business, it is important not to overestimate it and to consider possible threats. Finding the right business for acquisition can also take considerable time.
Main advantages of business acquisition |
Main disadvantages |
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Mergers and affiliations
The following types of business consolidation are possible:
- Affiliation – is connecting one or several companies to the other company already in operation, to which all the rights and duties of the company reorganised through affiliation are transferred.
- Consolidation – is combining two or more companies into a new company, to which all the rights and duties of the reorganised companies are transferred.
Usually legal entities of the same legal form can participate in mergers of legal entities (e.g. PLC can merge with PLC only).