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merger is 2 companies combining into 1... acquisition one company is taking the other over

2006-06-22 06:17:29 · answer #1 · answered by cmhurley64 6 · 0 0

Difference Between Merger And Acquisition

2016-10-03 04:46:36 · answer #2 · answered by ? 4 · 0 0

The phrase mergers and acquisitions or M&A refers to the aspect of corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets. Usually mergers occur in a friendly setting where executives from the respective companies participate in a due diligence process to ensure a successful combination of all parts.

On other occasions, acquisitions can happen through a hostile takeover by purchasing the majority of outstanding shares of a company in the open market. In the United States, business laws vary from state to state whereby some companies have limited protection against hostile takeovers. One form of protection against a hostile takeover is the shareholder rights plan, otherwise known as the "poison pill". See Delaware corporations.

Historically, mergers have often failed to add significantly to the value of the acquiring firm's shares. Corporate mergers may be aimed at reducing market competition, cutting costs (for example, laying off employees), reducing taxes, removing management, "empire building" by the acquiring managers, or other purposes which may not be consistent with public policy or public welfare. Thus they can be heavily regulated, requiring, for example, approval in the US by both the Federal Trade Commission and the Department of Justice.

2006-06-22 06:19:36 · answer #3 · answered by Retarded Dave 5 · 0 0

merger is two companies combined together for a common interest. Both have interest in the management on either of the company. While acquisition, is buying or acquiring other company. It is the buyer who owns and operate the company upon acquisition. The seller have no interest on the said company anymore.

2006-06-22 06:26:42 · answer #4 · answered by leonxinef 1 · 0 0

a merger is when two companies agree to become one, with the results hopefully making them stronger and more profitable. An acquisition is when one company takes over another, such as by buying up the majority of their stock.

2006-06-22 06:20:19 · answer #5 · answered by rainydaydreamr 4 · 0 0

Technically a merger is usually two somewhat equivalent companies joining together. Often they may combine names or do business under an entirely new name. (Corp A + Corp B = Corp C.)

An acquisition is where one company buys another and integrates it into its operations. (Corp A + Corp B = Bigger Corp A.)

2006-06-22 06:19:14 · answer #6 · answered by Thrasher 5 · 0 0

Merger is to join-up
Acquisition is to steal

2006-06-22 06:20:13 · answer #7 · answered by Search 2 · 0 0

Watch American Psycho. It will clearly be explained.

2006-06-22 06:18:36 · answer #8 · answered by pulchritudinous 6 · 0 0

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