Call 1-800-511-0597
For a Free Consultation

Mergers

A merger is a tool used by companies for the purpose of expanding their operations often aiming at an increase of their long term profitability.

In business a merger is a combination of two companies into one larger company.

Such actions are commonly voluntary and involve stock swap or cash payment to the target. Stock swap is often used as it allows the shareholders of the two companies to share the risk involved in the deal.

Usually mergers occur in a consensual (occurring by mutual consent) setting where executives from the target company help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties.

A merger can resemble a takeover but result in a new company name (often combining the names of the original companies) and in new branding; in some cases, terming the combination a "merger" rather than an acquisition is done purely for political or marketing reasons.

See ACQUISITIONS