Page 15 - M & A Disputes

Chapter 1

Overview of Merger and Acquisition Transactions and Disputes

Mergers and Acquisitions

The conjunctive term merger and acquisition (M&A) refers to transactions by which companies are
combined through the purchase, sale, and combining of separate companies or assets thereof. M&A is
typically consummated in an effort to accomplish financial objectives or help a company attain growth
or market share within a particular industry or segment without having to organically create an addition-
al business entity. During the first decade of the 2000s, over $14 trillion of M&A deals were completed
globally, as described subsequently in chart 1.1. fn 1

Mergers and acquisitions are terms often used in conjunction with one another; however, the terms
themselves are not synonymous. A merger is a legal term that refers to the absorption of one organiza-
tion or corporation that ceases to exist into another that retains its own name and identity and that ac-
quires the assets and liabilities of the former. fn 2 The term acquisition refers to gaining possession or
control over a target company or its assets.

Business acquisitions may be accomplished by an asset purchase, a stock purchase, a merger, or some
combination thereof.

fn 1 Bloomberg.

fn 2 Black’s Law Dictionary.

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