Merger & Acquisition (M&A)
Combining or purchasing companies, often facilitated by advisory banks.
Detailed Description
Merger & Acquisition (M&A)
What is the difference between a merger and an acquisition?
A merger combines two companies to form a new entity, while an acquisition involves one company purchasing another.
What are some types of mergers?
Types of mergers include horizontal, vertical, conglomerate, market extension, and product extension mergers.
What is the purpose of mergers and acquisitions?
The primary purposes include growth and expansion, diversification, creating synergies, and gaining access to new technologies or expertise.
What are the key stages in the M&A process?
Key stages include strategic planning, target identification, due diligence, valuation and negotiation, financing, closing the deal, and post-merger integration.
What challenges can arise during M&A transactions?
Challenges include cultural integration, regulatory hurdles, overvaluation risks, and operational disruptions.