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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Evaluation of mergers and acquisition.
Hi
just to get this point right when evaluating mergers through share for share offer; is it ok to say the gains on the shares are rolled over and both parties get the tax liability delayed till the gain crystalizes?
if there is a longer/more detailed better way of putting this, please put it forward.
Additionally, in the event of unlisted company pursuing subsidiary of a listed company , how does partial listing operates to make the deal favorable to the target company? I mean the concept of partial listing.
thanks, john.
Your first point is fine.
By listing some of the shares on the stock exchange it means those shares are more easily tradable which will be more appealing to the shareholders of the target company. (If they were receiving shares that were not listed on a stock exchange then it would be harder for them to sell them in the future).
Got it.
thanks
You are welcome 🙂