M&A

Definition	:	Mergers and Acquisitions
Category	:	Business » Finance
Country/Region	:	Worldwide
Popularity	:

What does M&A mean?

Mergers and Acquisitions (M&A) refers to the process of consolidating companies or their assets through various types of financial transactions. The goal of M&A is to create a new entity that is more efficient and effective than the two previous companies on their own.
M&A involves the process of combining two companies into one. A merger is the consolidation of two entities into one, whereas an acquisition occurs when one company takes over ownership of another.

Note:
In a merger, two companies of similar size combine to form a new single entity.
In an acquisition, a larger company acquires a smaller company, thereby absorbing the business of the smaller company.