What is Mergers & Acquisitions (M&A)?

Mergers and acquisitions (M&A) refers to the process of one company acquiring or merging with another company. There are two main types of M&A transactions:

1. Mergers: A merger occurs when two companies combine to form a new company. The new company may be a combination of the two former companies, or it may be a completely new entity.

2. Acquisitions: An acquisition occurs when one company purchases another company. The acquiring company may pay for the acquisition with cash, stock, or a combination of both.

M&A transactions can be motivated by a variety of factors, including the desire to expand into new markets, acquire new technology or intellectual property, or achieve economies of scale. M&A activity is common in many industries, and investment banks often advise companies on M&A transactions and help them structure and execute deals.