Question

How do joint ventures and strategic alliances differ from mergers and acquisitions?

Answer 1

Differences between joint ventures and strategic alliances from mergers and acquisitions are

1. Joint ventures and strategic alliance are for short term while mergers and acquisitions are for long term
2. In Joint ventures and strategic alliance both the entities exists even after the process whereas in mergers and acquisition only on entity exists and the other ceases to exist
3. In strategic alliance and venture they access to shared technologies and process whereas in mergers and acquisition everything is acquired including debt, employees,etc.
4. In strategic alliance and venture one party does not have to pay shares or cash whereas in mergers and acquisition one party has to pay other party cash or shares at predetermined price.

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