Mergers and Acquisitions (M&A)
FDI Invest team selectively supports Mergers and Acquisition through strategic consulting and synergy creation across companies, businesses, products and services of different markets or same market for forging higher business strength and next level capabilities development.
What Are Mergers and Acquisitions (M&A)?
Mergers and acquisitions (M&A) is a general term that describes the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, purchase of assets, and management acquisitions.
The term M&A also refers to the desks at financial institutions that deal in such activity.
- The terms "mergers" and "acquisitions" are often used interchangeably, but they differ in meaning.
- In an acquisition, one company purchases another outright.
- A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name.
- A company can be objectively valued by studying comparable companies in an industry and using metrics.
- When one company takes over another and establishes itself as the new owner, the purchase is called an acquisition
- On the other hand, a merger describes two firms, of approximately the same size, that join forces to move forward as a single new entity, rather than remain separately owned and operated
- A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies.