The Difference Between The Term A Merger And An Acquisitions(Part2 of 4)



Merger Versus Acquisition


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


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


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