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- In the history of merger and acquisition five waves are recognized within 1898 to 1992.
- Main reasons of merger and acquisition classified as growth, synergy, managerial efficiency, market entry, diversification, tax shield and strategic reasons.
- Business combinations can be done in the form of consolidation, merger, takeover and asset purchase.
- Companies can use share purchase, white knight, poison pills, corporate charter amendments, golden parachutes, greenmail, standstill agreements, poison puts, white squire, pacman strategy, crown jewels as defensive measures against takeover.
- Firms can restructure by going public, going private, joint ventures and capital restructuring.
- Amalgamation is of two types - either in the nature of merger or in the nature of purchase.
- Accounting methods for amalgamation are pooling of interest method and purchase method.