Company merger is also called absorption merger. According to the acquisition target, it refers to two or more independent enterprises, which can be further divided into asset acquisition and share acquisition. Merger is the integration of enterprises, so it is customary to use it together, while acquisition is only to obtain the control of the other party, and the company is merged to form a company, referred to as merger.
The main difference between M&A and acquisition is that acquisition refers to the purchase of shares of another enterprise by one enterprise with cash or securities, or the merger of assets is very extensive. After the merger is completed, it is in a controlling position. There are usually two forms of merger, namely, controlling the enterprise. Another concept related to the meaning of M&A is merger, which means that two or more enterprises merge into a new enterprise.
Acquisition means that one enterprise buys the assets of another enterprise and multiple legal persons become one legal person. Merger generally refers to the merger of two or more companies. In order to obtain the ownership of all assets or an asset of an enterprise, it is often difficult to strictly distinguish between mergers and acquisitions.