As a member of JIM’s acquisition team, you have been asked to look at various forms of acquisitions. Currently, it is JIM’s plan to acquire Mason Machining, Inc. by paying $6,500,000 in cash, but management would like to know what forms of acquisition are possible. Your research has determined that there are 3 types of acquisitions/reorganizations. They are as follows:
- Type Aâ€”merger or consolidation
- Type Bâ€”stock for stock
- Type Câ€”assets for stock
Write a memo:
- Explaining each of these types of acquisitions, and
- What are the main characteristics of each?
600 word memo