M&A

Mergers & Acquisitions (M&A) is a general term that describes the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.

The term M&A also refers to the desks at financial institutions that deal in such activity. In a merger, the boards of directors for two companies approve the combination and seek shareholders’ approval. In a simple acquisition, the acquiring company obtains the majority stake in the acquired firm, which does not change its name or alter its organizational structure.