Mergers and Acquisitions

Mergers and Acquisitions (M&A) refer to the processes through which companies consolidate their ownership or control over other companies. A merger occurs when two firms combine to form a new entity, typically to enhance operational efficiencies, increase market share, or gain competitive advantages. Conversely, an acquisition happens when one company purchases another company, which may not necessarily result in a new entity; the acquired company often becomes part of the acquirer.

M&A activities are driven by various strategic goals including growth, diversification, access to new markets, or the acquisition of new technologies. These transactions can range from friendly deals, where both parties agree to the terms, to hostile takeovers, where the acquisition is pursued against the wishes of the target company’s management.

The M&A process typically involves several stages, including due diligence, negotiation, and regulatory approval. M&A can significantly impact the businesses and industries involved, influencing everything from market dynamics to employment levels.