Registration Statement Under the Securities Act of 1933 Definition

Table of Contents

What Is SEC Form S-4?

SEC Form S-4: Registration Statement Beneath the Securities Act of 1933 must be submitted to the Securities and Exchange Charge (SEC) inside the fit of a merger or an acquisition between two corporations. The form must also be submitted for business supplies.

Form S-4 has two parts. Section I is the prospectus or proxy commentary involved. Section II comprises supplemental information that can include expenses issued, private placements of securities, and additional tax information.

Key Takeaways

  • Form S-4 must be submitted to the SEC inside the fit of a merger or an acquisition between two corporations to be sure the merger is legal.
  • The form must also be submitted for business supplies.
  • Consumers closely watch Form S-4 submissions in an effort to check out to make speedy options from M&A role.

Figuring out Form S-4

A publicly-traded company registering any subject material information related to a merger or acquisition or corporations provide procedure an business offer will file Form S-4. An business offer occurs when a company or a financial status quo supplies to modify securities that it provides for an identical securities at a lot much less onerous words. This is frequently completed in an attempt to avoid bankruptcy.

Consumers closely watch Form S-4 submissions in an effort to check out to make speedy options from M&A role, and can download a company’s S-4 directly from the SEC.

This sort must also be submitted for business supplies.

Why Merge?

Mergers occur for various reasons: they are able to help corporations lengthen to new territories, unite not unusual products or switch into new segments, broaden revenues, and increase source of revenue—all so to create shareholder value. After a merger, new company shares are allotted to present shareholders of every original corporations.

5 not unusual kinds of mergers include:

  • Conglomerate: This occurs between two or further corporations engaged in unrelated business movements (i.e., different industries and/or geographical spaces). A mixed conglomerate takes place between organizations which can be attempting to reach product or market extensions all over the merger, such for the reason that 1995 merger between The Walt Disney Company and the American Broadcasting Company (ABC).
  • Congeneric: Two or further corporations serve as within the equivalent market or sector with overlapping technology, promoting, production processes, or research and construction (R&D). They join forces in this product extension merger, and a brand spanking new product line from one company is added to an present product line of the other company.
  • Market extension: This occurs when corporations advertise the equivalent products then again compete in a large number of markets. For example, WeWork merged with the Chinese language language co-working startup Naked Hub in 2018, which gives an identical co-working services and products in Shanghai, Beijing, and Hong Kong. WeWork used to be as soon as in search of vital expansion out of doors the U.S.
  • Horizontal: This occurs between pageant operating within the equivalent business. The merger is typically part of a consolidation and is further not unusual in industries with fewer corporations. Horizontal mergers can create a single, upper business with higher market share.
  • Vertical: When two corporations that produce parts or services and products for a decided on finished product merge. Generally, the ones two corporations serve as at different levels within the equivalent business’s supply chain and can achieve value support. A well known vertical merger used to be as soon as the 2000 combination of The united states Online (AOL) and media conglomerate Time Warner.

In all cases, participating corporations must post Form S-4 to the SEC to be sure the merger is legal.

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