Corporate, Mergers & Acquisition
Mergers and Acquisitions (M&A) refer to the consolidation of companies or assets through various financial transactions. This can include mergers, where two companies combine to form a new entity, or acquisitions, where one company purchases another. M&A is a significant part of corporate strategy, allowing companies to grow, diversify, or gain a competitive edge.
Key Concepts in Mergers & Acquisitions:
Mergers
Horizontal Merger:
Between companies in the same industry.
Vertical Merger
Between companies at different stages of production in the same industry.
Conglomerate Merger
Between companies in different industries.
Acquisitions
Asset Purchase
Acquiring company buys the assets of the target company.
Stock Purchase
Acquiring company buys shares of the target company, gaining control.
Friendly Acquisition
Agreed upon by both companies.