Merger & Acquisition

Hii Buddy , I want tot know What Are Mergers and Acquisitions ? Will you Please provide me Definition & Examples of same ?

[Shaleen]

Mergers and acquisitions (M&A) are Transactions in which the Ownership of Companies, other Business Organizations or their Operating units are transferred or combined.

Aspect of Strategic Management, M&A can allow enterprises to grow, shrink, change the nature of their business or improve their competitive position.

Definition of 'Mergers And Acquisitions - M&A'

A General Term Used to refer to the Consolidation of Companies.

A Merger is a Combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

Varieties of Mergers

Horizontal merger
Two companies that are in direct competition and share the same product lines and markets

Vertical merger
A customer and company or a supplier and company Think of a cone supplier merging with an ice cream maker.

Market-extension merger
Two companies that sell the same products in different markets

Product-extension merger
Two companies selling different but related products in the same market.

Conglomeration
Two companies that have no common business areas