"As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position."
Legal processes that facilitate the acquisition or merger of businesses.
Introduction to Mergers and Acquisitions: This topic covers the basics of mergers and acquisitions, including the types of transactions, the reasons behind them, and the key players involved.
Corporate Governance: This topic covers the rules, policies, and procedures that companies use to manage their affairs, including the role of the board of directors and the responsibilities of senior management.
Due Diligence: This topic covers the process of investigating a potential acquisition target, including its financial performance, legal compliance, and strategic fit.
Valuation: This topic covers the methods used to determine the value of a target company, including discounted cash flow analysis, market comparables, and precedent transactions.
Negotiation: This topic covers the skills and techniques used to negotiate the terms of an acquisition, including price, structure, and contingencies.
Regulatory Approval: This topic covers the legal and regulatory requirements that must be satisfied in order to complete an acquisition, such as antitrust and competition laws.
Financing: This topic covers the sources and types of financing available for mergers and acquisitions, including debt financing, equity financing, and leveraged buyouts.
Taxation: This topic covers the tax implications of mergers and acquisitions, including issues such as tax credits, deferred tax assets, and the impact of different tax regimes.
Integration: This topic covers the process of integrating the operations and cultures of the acquiring and target companies, including systems integration, staffing, and cultural assimilation.
Post-Merger Integration: This topic covers the challenges and opportunities that arise after an acquisition is completed, including ongoing management of legal, financial, and cultural issues.
Horizontal Merger: The combination of two companies in the same industry and at the same stage of production is called a horizontal merger.
Vertical Merger: The combination of two companies in the same industry, but at different stages of production is called a vertical merger.
Conglomerate Merger: The combination of two companies in different industries or having no common business is called a conglomerate merger.
Market Extension Merger: When two companies in the same industry merge to gain access to new markets or increase their market share in existing markets, it is a market extension merger.
Product Extension Merger: When two companies in the same industry merge to expand their product line or offer a broader range of products to their customers, it is called a product extension merger.
Congeneric Merger: When two companies in related industries or with related products merge, it is called a congeneric merger.
Reverse Merger: In a reverse merger, a private company acquires a public company to become publicly traded without going through the lengthy process of an initial public offering (IPO).
Acquisition of Assets: When one company acquires the assets of another company rather than acquiring the entire business, it is called an acquisition of assets.
Tender Offer: A tender offer is a public offer made by one company or a third party to acquire a substantial portion or all of the shares of another company.
Management Acquisition Merger: A management acquisition merger is when a company's management team acquires the controlling interest in the company.
Leveraged Buyout: A leveraged buyout is an acquisition in which a company is acquired with a significant amount of debt financing that is secured by the assets of the acquired company.
Joint Venture: When two companies agree to form a new entity for a particular purpose, it is called a joint venture.
Cross-Border Merger: A cross-border merger occurs when two companies in different countries merge to form a new global business.
Conglomeration: When a corporation acquires a diverse range of businesses that are not related to its core business, it is called a conglomerate.
Reverse Takeover: A reverse takeover is a type of acquisition in which a private company acquires a public company with the aim of becoming a publicly traded entity.
Share Swap: A share swap is a type of merger in which the shareholders of one company are offered shares in the acquiring company in exchange for their shares in the company being acquired.
Asset Swap: In an asset swap, a company acquires another company's assets by exchanging its own assets with it.
Merger of Equals: In a merger of equals, two companies of equal size and stature merge to form a new entity.
Minority Interest Acquisition: A minority interest acquisition is a type of acquisition in which a company acquires a minority stake in another company.
Parallel Merger: A parallel merger is a type of merger in which two companies merge to create a new entity that is parallel to both companies.
Joint Stock Merger: In a joint stock merger, the shares of the acquired company are converted into shares of the acquiring company.
Reverse Integration: In reverse integration, a supplier acquires its customer company to secure a long-term source of business.
Backward Integration: In backward integration, a company acquires a supplier company to have better control over its supply chain.
Forward Integration: In forward integration, a company acquires a customer company to have better control over its demand chain.
Co-merger: A co-merger is a type of merger in which two or more companies merge to form a new entity that shares control between them.
Activist Merger: An activist merger is a type of merger that is initiated by an activist investor or a group of investors seeking to influence the direction of the company.
Private Equity Buyout: A private equity buyout is a type of acquisition in which a private equity firm acquires a company with the aim of making it profitable and then selling it for a profit.
Merger of Joint Ventures: When two or more joint ventures merge to form a new entity, it is called a merger of joint ventures.
Minority Buyout: In a minority buyout, a company acquires a minority stake in another company with a view to acquiring a controlling stake in the future.
Reverse Morris Trust: A reverse Morris Trust is a type of merger in which a tax-free spin-off of a subsidiary is followed by a merger with a smaller company.
"Technically, a merger is the legal consolidation of two business entities into one, whereas an acquisition occurs when one entity takes ownership of another entity's share capital, equity interests or assets."
"A deal may be euphemistically called a 'merger of equals' if both CEOs agree that joining together is in the best interest of both of their companies."
"From a legal and financial point of view, both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity, and the distinction between the two is not always clear."
"In most countries, mergers and acquisitions must comply with antitrust or competition law."
"In the United States, for example, the Clayton Act outlaws any merger or acquisition that may 'substantially lessen competition' or 'tend to create a monopoly'."
"The Hart–Scott–Rodino Act requires companies to get 'pre-clearance' from either the Federal Trade Commission or the U.S. Department of Justice's Antitrust Division for all mergers or acquisitions over a certain size."
"To allow enterprises to grow or downsize, and change the nature of their business or competitive position."
"Both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity."
"If both CEOs agree that joining together is in the best interest of both of their companies."
"Mergers and acquisitions must comply with antitrust or competition law."
"The Clayton Act outlaws any merger or acquisition that may 'substantially lessen competition'."
"All mergers or acquisitions over a certain size require 'pre-clearance'."
"As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position."
"Both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity."
"A deal may be euphemistically called a 'merger of equals' if both CEOs agree that joining together is in the best interest of both of their companies."
"The Hart–Scott–Rodino Act requires companies to get 'pre-clearance'."
"The Clayton Act outlaws any merger or acquisition that may 'substantially lessen competition' or 'tend to create a monopoly'."
"Companies must get 'pre-clearance' from either the Federal Trade Commission or the U.S. Department of Justice's Antitrust Division."
"M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position."