Team memos

As a member of JIM’s acquisition team, you have been asked to look at various forms of acquisitions. Currently, it is JIM’s plan to acquire Mason Machining, Inc. by paying $6,500,000 in cash, but management would like to know what forms of acquisition are possible. Your research has determined that there are 3 types of acquisitions/reorganizations. They are as follows:

Type A merger or consolidation
Type B stock for stock
Type C assets for stock
Write a memo:

Explaining each of these types of acquisitions, and
What are the main characteristics of each?

Sample Solution