Mergers and Acquisitions

M & A Mergers and Acquisitions

M&A represent an important part of corporate finance. Every day big investment banks arrange M&A transactions, and it means a lot of documents that must often be translated by specialized translators.

Mergers and acquisitions are both aspects of strategic management, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow quickly,  In fact, mergers and takeovers (or acquisitions) are very similar corporate actions – they combine two previously separate firms into a single legal entity.

A merger takes place when two companies join together to form a new one (e.g. Walt Disney and Pixar or Exxon and Mobil, Facebook and WhatsApp…)

A takeover or acquisition takes place when a company buys another one (e.g. Daimler Benz and Crysler, Microsoft and Nokia…)

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So a takeover is the purchase of a company. A takeover is different from a merger, which occurs when the purchaser and the target both cease to exist and instead form a new, combined company.

M&A can be also defined as a type of restructuring in that they result in some entity reorganization with the aim to provide growth or positive value. 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 automotive industry between 1910 and 1940.

Mergesrs and Acquisitions in Spanish: Fusiones y Adquisiciones

Mergers and Acquisitions in French: Fusions-acquisitions

 

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