Mergers and Acquisitions (M&A) – Definition, Types, and Process
Mergers and Acquisitions (M&A) are increasingly becoming a novel approach for companies to wade through the competitive pressures of today’s globalized society. The increase of mega-mergers in today’s corporate world demonstrates the entrenchment of such transactions in modern business practices. Definitions of Mergers and Acquisitions “One plus one equals three”. This statement defines the main logic that informs merger and acquisition transactions. This logic stems from the fact that most companies aim to create a bigger shareholder value than the sum of the shareholder value that would ordinarily be realized if two corporate entities merge. The reasoning behind merger and acquisition transactions therefore stems from the fact that there is a greater value when two companies work together, as opposed to two companies working in isolation. Mergers and Acquisitions (M&A) are therefore joint activities where the activities of two or more companies merge to create one common purpose for both Continue reading