Nature of mergers and acquisitions

Mergers and acquisitions (M&A) refer to the consolidation of companies through various financial
transactions. They involve the combination of two or more separate entities to form a new entity or the
acquisition of one company by another. M&A transactions can take several forms, including mergers,
acquisitions, consolidations, joint ventures, and strategic alliances.
Mergers: A merger occurs when two companies agree to combine their operations and form a new
company. In a merger, the shareholders of both companies usually exchange their shares for shares in
the new entity.
Acquisitions: An acquisition happens when one company purchases another company. The company
taken over loses its identity