Distinction between Mergers and Acquisitions<\/strong><\/h6>\n\n\n\nAlthough they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things. When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer \u201cswallows\u201d the business and the buyer\u2019s stock continues to be traded.<\/p>\n\n\n\n
In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a \u201cmerger of equals.\u201d Both companies\u2019 stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created.<\/p>\n\n\n\n
In practice, however, actual mergers of equals don\u2019t happen very often. Usually, one company will buy another and, as part of the deal\u2019s terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it\u2019s technically an acquisition. Being bought out often carries negative connotations, therefore, by describing the deal as a merger, deal makers and top managers try to make the takeover more palatable.<\/p>\n\n\n\n
CGR-MINDS have international expertise in handling all such types of transactions, right from Targeting to closing the deal.<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"
Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, which bring separate companies together to form larger ones. When they\u2019re not creating big companies from smaller ones, corporate finance deals do the reverse and break up companies through spinoffs,<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":979,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/pages\/7233"}],"collection":[{"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/comments?post=7233"}],"version-history":[{"count":4,"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/pages\/7233\/revisions"}],"predecessor-version":[{"id":8867,"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/pages\/7233\/revisions\/8867"}],"up":[{"embeddable":true,"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/pages\/979"}],"wp:attachment":[{"href":"https:\/\/cgrminds.in\/wp-json\/wp\/v2\/media?parent=7233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}