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Definition | : | Mergers and Acquisitions |
Category | : | Business » Finance |
Country/ Region |
: | Worldwide
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Popularity | : |
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Mergers and Acquisitions (M&A) refers to the process of consolidating companies or their assets through various types of financial transactions. The goal of M&A is to create a new entity that is more efficient and effective than the two previous companies on their own.
M&A involves the process of combining two companies into one. A merger is the consolidation of two entities into one, whereas an acquisition occurs when one company takes over ownership of another.
Note:
In a merger, two companies of similar size combine to form a new single entity.
In an acquisition, a larger company acquires a smaller company, thereby absorbing the business of the smaller company.
The full form of M&A is Mergers and Acquisitions