Merger & Acquisition (M&A) refers to the processes through which companies consolidate their assets and operations. A merger occurs when two companies agree to combine into one entity, typically to enhance market competitiveness, expand capabilities, or realize synergies. In a merger, the companies usually join forces at a relatively equal level.
An acquisition, on the other hand, occurs when one company purchases another, gaining control of its operations and assets. This can involve buying a majority stake in the target company or its entire business. Acquisitions can be friendly, where the target company agrees to the purchase, or hostile, where the acquiring company tries to take control against the wishes of the target’s management.
M&A activities are driven by various strategic goals, including expansion into new markets, diversification of products and services, increased market share, and achieving economies of scale. The M&A process often involves extensive due diligence, valuation assessments, and negotiations to finalize terms of the deal. Legal and regulatory considerations also play a crucial role, as antitrust laws and other regulations must be reviewed to ensure compliance.
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