Mergers & Acquisitions
Mergers and Acquisitions are both changes in control of companies that involve combining the operations of multiple entities into a single company.
In a merger, two companies agree to combine their operations into a single entity.
In an acquisition, one company purchases another company, and has the right to sell off operations, merge them into similar groups in the purchasing company, or close facilities or cancel products altogether.
Companies would choose to merge together for different reasons:
Acquisitions are undertaken for strategic reasons. For example: