Merger Law Associates: What are Mergers and Acquisitions

Hello class, do you have any questions regarding marketing concepts?

Professor Siegfried, can you explain what mergers and acquisitions are?

Well, Sarah, mergers and acquisitions refer to an aspect of corporate strategy, corporate finance, and management that deals with the buying, selling, dividing, and combining of different companies and similar entities. This assists a corporation in growing rapidly in its industry or location of origin, or in a new field or overseas location, without having to create a subsidiary or using a joint venture.

The distinction between a merger and an acquisition is not clear and rather blurry.

Okay, I understand, professor. But what are other advantages of mergers and acquisitions for corporations?

Well, the other big advantages are that a corporation, through an acquisition or merger, can gain large incremental increases in market share, improve economies of scale, and acquire new technology and expertise.

Thanks, professor, for that clear explanation!