What's the difference between a joint venture company and a merger?

[Ralphjoe]

I have been hearing so much about these two terms, I know there are similarities between them. These are both strategies that businesses take to survive or stay afloat in this very uncertain and very competitive business world right now.
Now I want to know the difference between a joint venture and a merger. Thanks guys as you help me out here.

 

[Suba]

In simple language, a joint venture is a cooperation contract both in production factors, both raw materials, labor and capital by forming a new company, while a merger is the incorporation of two or more companies into one existing company, for example Beermoney, gg merger with Bizdustry .

 

[giddy]

They are some how similar but different
In a merger, two or more companies combine forces and become a new, separate entity. ... However, in a joint venture, two or more companies combine and share their resources for the purpose of pursuing a specific goal.

 

[nwankwovivian247]

In a merger, the ownership of the entity created is the same to the owners of the original firms. On the other hand, a joint venture is owned by the original firms that led to its creation.

Mergers have a larger scope. Joint ventures, on the other hand, have a much-limited scope.
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In a merger, the ownership of the entity created is the same to the owners of the original firms. On the other hand, a joint venture is owned by the original firms that led to its creation.

Mergers have a larger scope. Joint ventures, on the other hand, have a much-limited scope.

 

[Ltherman]

Joint Ventures sometimes called JV are when two or more companies cone together to share resources, tools, workforce and expertise in a particular venture and splitting earnings accordingly.
While merger is when two distinct entities metamorphous as one company after going through a merger process.

 

[Maliha]

Jount venture is a partnership of two or more individuals or companies to share profit.it is in short duration.it is also temporarily in nature.
Merger is combining of two or more companies merge to becomes one.it is permanent in nature.it is done to improve quality and matket value.

 

[Alexandoy]

A merger is the marriage of 2 companies that produces another company. A consolidation is a big company that buys a small company and the big company retains its identity. However, some mergers now retain the identity of one of the merging companies. A joint venture is like a partnership of 2 companies for a particular purpose or project. That is happening now in some government projects like the planned airport that will be a joint venture of San Miguel (the largest company here and another big company called Ayala).

 

[WhiteHouse]

In a joint venture, two companies invest in a new company. They share the ownership but aren’t otherwise linked. The percentage of the joint venture that each owns is decided by their agreement and is usually based on the size of their investment.

Some countries that don’t allow foreigners to fully own businesses (and there a lot of these, including China, India, and in the US, in the airline business). So foreign investors are forced to create joint ventures with local partners, often on terms that are prejudiced against the foreign investor.

A merger occurs when two firms join together and end up owned by the same people. Usually, the shares of the two companies are portioned out in a new share system or in one company’s shares, on the basis of the value of a share in each company.

 

[chicnthin]

Both types involves two or more companies. A merger combines the two companies to create a new one. The new company will be the one to exist and operates. A joint venture shares the resources of the two company for a specific purpose but will still remain as separate company.

 

[Seun4luv]

Merger are defined as the consolidation of companies. These are modes by which different business entities combine while joint venture on the other hand, are the way for two business entities to build a contractual arrangement and work together to achieve the common goal of growth and profits.

 

[Erik4150]

Joint venture is like a partnership between two or more companies who work together to reach a certain goal.
Merger is when two or more companies join together to create one big new company.

 

[Hasan Raza]

A joint venture is a business in which two or more parties agree to do a business or a project. In this they all participate and they bear all profit, losses and cost associated with it.
Merger means joint two existing companies into one new company there are many types of merger.

 

[Sotherefore]

To me I don't see any difference in the two because they are almost the same and the management are also the same I don't see the different between them because join you are joining with people merge you are still joining with people or I can suggest that both are the same it may be different in operation but they are still the same I don't know if what I'm saying is the right thing, let me wait for others to bring out their own point of view .

 

[Eamodu]

I have been hearing so much about these two terms, I know there are similarities between them. These are both strategies that businesses take to survive or stay afloat in this very uncertain and very competitive business world right now.
Now I want to know the difference between a joint venture and a merger. Thanks guys as you help me out here.

As the name implies,a joint venture is a single business owned by two or more people.thus, person A and B come together to run a single business together. A merger on the other hand,involves to businesses coming together as one.thus business A will come together with business B to run together.note business A as it's owner,and business B as it's owner too and they will come together to complete the merger.

 

[Mary]

A merger is when to separate companies combine with each other to create a newly formed organization, while joint venture involves two separate entities undertaking a company or business together

 

[Chumzy]

Joint venture is a business arrangement between two separate organizations, agreeing to do business together while they maintain they entity. The either provide raw materials or finished goods for the other.
A merger is the coming together of two separate entities to become one doing business together. They can both use a new name.

 

[kaychiz]

In a joint venture, two or more individuals or business entities go into business together and decide to share proceeds together while also sharing responsibilities. Its more or less a partnership arrangement.

For merger, two or more businesses that hitherto existed independently, decide to pull their resources, assets and liabilities together and henceforth become a new combined business entity.

 

[Adegbindin Abdullahi]

A merger is when two separate companies combines with one another to create a newly formed organization. Joint venture involves two separate entities undertaking a company or business together, sharing its profit, loss and control

 

[Ridorz]

Merger and joint venture are really similarly but have different in one way. Merger is a two or more company that comes together to form another and stand as one company, while a joint venture is a act of starting a business or investment by two different company in which that they contribute a money to start and share a profit or loose.

 

[Sariana23]

Joint ventures is, in my opinion, when two or more parties invest capital to create a company and make a profit together. A merger is when a company created absorbs one or more companies that have been dissolved. Therefore the benefits are of the company that is maintained without having to share these profits.