What are the types of mergers and acquisitions?

  • Merger – in this type of M&A, the merger is approved by the boards of directors of two companies and approved by their respective shareholders. The acquired company won’t exist as it becomes a part of the acquiring company.  
  • Acquisitions – the majority stake in an acquired firm will go to the acquiring company without changing the name and legal structure of the former.
  • Consolidation – through this type of M&A, two companies will combine their core businesses to create a new company.
  •  Tender Offer – a company acquires another company by purchasing the acquired company’s stock
  • Acquisition of Assets – this type of M&A is common to companies facing bankruptcy where one company will directly acquire the assets of the other company

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