Business Combinations

Type of Combination
Statutory merger
through asset
acquisition
Statutory merger
through capital stock
acquisition.

Actions of Acquiring
Company
Acquires assets and often
liabilities.
Acquires all stock and
then transfers assets and
liabilities to its own books

Actions of Acquired
Company
Dissolves and goes out of
business.

Dissolves as a separate
corporation, often
remaining as a division of
the acquiring Company.
Statutory consolidation Newly created to receive
Original Companies may
through capital stock
assets or capital stock of
dissolve while remaining
or asset acquisition
original companies
as separate divisions of
newly created Company.
Acquisition of more
Acquires stock that is
Remains in existence as
than 50 percent of the
recorded as an investment legal corporation,
voting stock.
controls decision making
although now a subsidiary
of acquired company.
of the acquiring company.