|Definition||:||Mergers and Acquisitions|
|Category||:||Business » Finance|
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.
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.
Frequently Asked Questions (FAQ)
What is the full form of M&A?
The full form of M&A is Mergers and Acquisitions