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Entering Target Markets: Difference between revisions
difference between merger and acquisition legally speaking
(definition of w:consolidation (business) from article [[w:mergers and acquisitions) |
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* '''[[w:Mergers and acquisitions|Mergers and acquisitions]]''' (abbreviated '''M&A''') are both an aspect of corporate strategy, corporate finance and [[w:management|management]] dealing with the buying, selling, dividing and combining of different [[w:companies|companies]] and similar [[w:business organization|entities]] that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. Mergers and acquisitions activity can be defined as a type of [[w:restructuring|restructuring]] in that they result in some entity reorganization with the aim to provide growth or positive value. ( Wikipedia ) | * '''[[w:Mergers and acquisitions|Mergers and acquisitions]]''' (abbreviated '''M&A''') are both an aspect of corporate strategy, corporate finance and [[w:management|management]] dealing with the buying, selling, dividing and combining of different [[w:companies|companies]] and similar [[w:business organization|entities]] that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture. Mergers and acquisitions activity can be defined as a type of [[w:restructuring|restructuring]] in that they result in some entity reorganization with the aim to provide growth or positive value. ( Wikipedia ) | ||
:::[[w:Consolidation (business)|Consolidation]] of an industry or sector occurs when widespread M&A activity concentrates the resources of many small companies into a few larger ones, such as occurred with the [[w:automotive industry|automotive industry]] between 1910 and 1940. ( Wikipedia on Mergers and acquisitions ) | :::[[w:Consolidation (business)|Consolidation]] of an industry or sector occurs when widespread M&A activity concentrates the resources of many small companies into a few larger ones, such as occurred with the [[w:automotive industry|automotive industry]] between 1910 and 1940. ( Wikipedia on Mergers and acquisitions ) | ||
:::From a legal point of view, a '''merger''' is a legal consolidation of two companies into one entity, whereas an '''acquisition''' occurs when one company takes over another and completely establishes itself as the new owner (in which case the target company still exists as an independent legal entity controlled by the acquirer). ( Wikipedia on distinction between merger and acquisition from [[w:mergers and acquisitions]] ) | |||