Business Combinations

Business combinations occur when one company acquires another or two companies merge to form a single entity. This process can happen through purchasing shares, assets, or through creating a new company. The goal is often to expand market reach, improve efficiency, or acquire new technologies. Financially, the acquired company's assets and liabilities are combined with the acquiring company's, and the overall value is reflected in the new or expanded organization. These transactions are carefully accounted for to ensure transparency and accuracy in financial reporting.