TABD U4DB Response 1 and 2

Name
Tutor
Subject
Date
TABD U4DB response 1 and 2
Misty Brown Posting
From Brown’s discussion, it is evident that companies have to define their goals, and plan and execute due diligence when forming mergers through consolidation. Brown notes that the companies involved in mergers have to define the primary company whose policies will be adopted. In the stock-for-stock merger, Brown notes that companies can use a mixture of stock and cash to acquire a firm. However, the purchased firm would have to bear extra tax charges. He also notes that the asset for the stock is an appropriate method of acquiring only part of the assets of the company to be acquired. By comparing the three methods, he suggests that the most appropriate method for JM to acquire Mason Machining Inc. is to use the cash method. Although Brown provides a detailed account of the three techniques used in the acquisition, he does not elaborate the viability of the method suggests for JM. A thorough analysis should be performed before picking the most appropriate merger acquisition method.
Tamela Davis posting
Davis states that the determining factors when using consolidation to acquire a firm are transparency, communication, qualified transition team, and experienced legal representation. He also notes that companies using the stock-for-stock technique should emphasize on honesty, communication, and accurate books. He is convicted that the success of the stock-stock-technique depends on the level of communication and involvement.

Davis also notes that asset for the stock is the most straightforward technique of acquiring a firm. Although Davis provides a detailed description the determining factors in the acquisition, he does not provide the most appropriate technique JM should employ to acquire Mason Machining Inc. Furthermore, he does not illustrate the tax consequences associated with each acquisition technique. Culhane (2010) suggests that ignoring the tax consideration when acquiring a firm is unhealthy for a business as it affects the company’s negotiating position.

References
Culhane Marty (May 5, 2010). “Top 10 Tax Considerations When Selling Your Business.” Small Business Tax Advisor. Retrieved (May 1, 2018) http://www.smallbiztaxadvisor.com/federal/top10.lasso