merger and acquisition
Business takeover deal
A merger and acquisition—usually pluralized as mergers and acquisitions or abbreviated M&A—refers to the consolidation of companies through various financial transactions.
In a merger, two companies combine to form a new entity.
In an acquisition, one company purchases another, which may continue operating or be absorbed.
The phrase covers the entire field of corporate restructuring: She works in mergers and acquisitions at an investment bank.
M&A activity often signals industry consolidation or aggressive growth strategies.
- target companyFirm sought for purchase
- due diligencePre-transaction reasonable care
- leveraged buyoutDebt-funded corporate acquisition
- private equityCapital for unlisted companies
- contractEnforceable written agreement
hostile takeover · shark repellent · white knight · board of directors · diversification · corporate restructuring · tender offer · golden parachute · market penetration · valuation · tax implications · shareholders · financial analysts · investment banks · synergy · competitive advantage · legal compliance · regulators
merger and acquisitiondivestiture
Disposal of assets
spinoff · demerger · corporate breakup · split-up · carve-out
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