| Mergers, MBO, LBO, Joint-Venture |
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Merger: the main purpose of a merger is the need to strength and increase its market presence and, at the same time, to obtain synergies. LBO: the leveraged buy-out is the acquisition of a company through the use of the financial debt provided by one or more banks. In these transactions, we can include also the acquisition through MBI (management buy-in), MBO (management buy-out) and Spin-off (sale of business division) that involve an institutional investor in partnership with a management team. The acquisition of a company generally takes place through the set up of a new company that will carry out and complete the transaction; the NewCo is usually financed by a mix of bank loans and equity injection from investors (institutional or not). Joint-Venture: a joint venture is a cooperation agreement between two or more companies; the companies, once decided to cooperate jointly on a specific project, employ their resources, sharing the related risk. The purpose of creating a JV comes from the need to reinforce a market presence without losing the independence of each company.
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