M&A is a general term that is used to describe the consolidation of two companies. There are two main types of M&A: merger and acquisition.
A merger is when two companies combine to form a new company. All of the assets and liabilities of both companies become the assets and liabilities of the new company. A merger usually happens when two companies are equally strong and want to join forces to become even stronger.
An acquisition is when one company buys another company. The acquiring company will take on all of the assets and liabilities of the acquired company. Acquisitions usually happen when one company wants to buy another company in order to obtain its assets, such as its customer base, technology, or products.
M&A can be a complex process, and businesses need to be prepared for it. M&A can be a great way for businesses to grow and expand, but it can also be a risky proposition. Businesses need to have a clear exit strategy in place before embarking on an M&A deal.
If you're thinking about M&A for your business, it's important to seek professional advice. An M&A advisor can help you navigate the process and ensure that you get the best possible outcome for your business.
