Mergers and Acquisitions Defined
Mergers and acquisitions or M & A are two different tools used regarding corporate finances, strategies and managerial decisions that enable a company to run the business and make it grow without the need to add an additional business structure. A merger expands company operations by increasing profitability over the long-term. Acquisition involve the purchase of usually other companies, including hostile or friendly versions. Mergers involve the friendly board consensus of a targeted company that assist the buyer in properly assessing details prior to a purchase. However, an acquisition can be done through a hostile takeover, by passing the agreement of that company board altogether and making a purchase with that company’s shareholders’ consent.