Mergers & Acquisitions

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Definition:

Mergers & Acquisitions or M&A is a combination of two areas. A merger is when two firms decide to come together to become a single new company and new company stock is issued. An acquisition or takeover is when one company buys another and then the target (bought) company ceases to exist. There is no exchange of stock or consolidation as a new company. If either the merger or acquisition is large enough the FTC can investigate if the transaction is compliant with antitrust laws. Usually the two terms are talked about in conjunction with each other as Mergers & Acquisitions or M&A