Merger Versus Acquisition

A “merger” refers to a situation where 2 firms of similar size combine (or merge ) willingly,

while

An “acquisition” or take-over implies that there is a dominant, bigger (predator) company taking over a smaller (target) company. Take-overs can either be agreed (friendly take-over) or contested (hostile take-over) by the target company.

See other articles on:                                                                         Justifications of Mergers & Acquisitions(M&A), Types of Mergers & Acquisitions,  Common Pitfalls in Mergers & Acquisitions