The Difference Between Mergers And Acquisitions
In the world of investment and business, the term “M&A” [...]
In the world of investment and business, the term “M&A” – Mergers & Acquisitions is often used together, but in reality, they are not exactly the same.
📌 1. Mergers
A merger is the process of combining two companies into a single new legal entity. This typically happens when two companies of similar size agree to cooperate, aiming to enhance competitiveness, expand market reach, or optimize costs.
👉 Example: Company A + Company B = New Company AB
📌 2. Acquisitions
An acquisition occurs when one company acquires a majority or full stake in another, thereby gaining control. The acquired company may retain its name and operate independently or be fully merged into the acquiring company.
👉 Example: Company A acquires 100% of Company B → Company B becomes a subsidiary or is merged into A
⚖️ Key Distinction:
- Mergers imply cooperation and equality
- Acquisitions imply control and dominance
🎯 Both approaches can create exceptional value when backed by the right strategy and well-managed post-transaction integration.
💼 Interested in M&A opportunities in Vietnam?
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📧 Email: m-a@tradeanalytics.vn
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