What Should You Know About Mergers and Acquisitions?
Mergers and acquisitions are common in business. They can be a way for companies to grow, reduce risk, and increase profitability. It's important to understand how these transactions work so that you can make the most of them when they happen to your company or another one you're involved with. Definition of Mergers and Acquisition When two companies that share a similar market or industry, merge or acquire each other’s operations, the result is a larger and more profitable business. The new company will have the combined resources and capabilities of both businesses and can be expected to enjoy improved financial performance. Mergers and acquisitions are not only a means of growing your business but also an opportunity for diversification as well. A Takeover A takeover is when one company buys another company. It can be an important part of business strategy, but it's not always a good idea. There are two types of takeovers: hostile and friendly. A hostile takeover happ