Re: what is merger and acquisition?

[kanimozhi]

A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another with no new company being formed.

[neofedrer]

Originally Posted by kanimozhi

A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another with no new company being formed.

Yes, it is the much suitable definition of merger and acquisition.

[masudkarim]

A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another with no new company being formed.
Investopedia Says:
An example of a major merger is the merging of JDS Fitel Inc and Uniphase Corp in 1999 to form JDS Uniphase. An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc.

The term M&A also refers to the department at financial institutions that deals with mergers and acquisitions.

[Priya Sharma]

The similarity between merger and acquisition is that both of them are combination of two companies. But the basic difference is merger is a financial tool to enhancing long term profitability by expanding their operations. Merger results in a new company name and a new branding. Acquisition is done purely for politically or marketing reasons. Acquisition is also known as takeover, it may be of two types - hostile & friendly.

some eg. of acquisitions are:
-> Tata steel acquired corus group.
-> Videocon acquired daewoo electronics corp.

[mergingtom]

Would any of you here happen to know any M&A support services as well??

I'm working on an M&A deal and I am looking for a good VDR solution that will help me speed things up and help me out a little. I have been looking into one called Deal Interactive and researched them through their site. however I was looking to get other people's thoughts on them. Has anybody ever worked with this service? If so, please let me know. Appreciate it.

-mergingtom

[Priya Sharma]

Hi,
I don't know about it. But i want to know about it.
I want to know about which type of help you are seeking for?
please tell me.

Regards:
Priya

[huanic]

The similarity between merger and acquisition is that both of them are combination of two companies. But the basic difference is merger is a financial tool to enhancing long term profitability by expanding their operations. Merger results in a new company name and a new branding. Acquisition is done purely for politically or marketing reasons. Acquisition is also known as takeover, it may be of two types - hostile & friendly.