The difference between company merger and acquisition

First, the performance is different:

1, acquisition:

In order to achieve certain economic goals, a company gains a certain degree of control over other companies through property rights transactions.

2.M&A:

Two or more independent enterprises, companies merge to form an enterprise, usually a dominant company absorbs one or more companies.

Second, the characteristics are different:

1, acquisition:

The purpose of acquisition is to eliminate competition, expand market share, increase the monopoly power of the acquired company or form scale effect.

2.M&A:

In the process of M&A, one or a part of the right holders get corresponding benefits by transferring the control right of the enterprise, while another part of the right holders get this control right at a certain cost.

Extended data

The most basic motivation of M&A behavior is to seek the development of enterprises. Enterprises seeking expansion are faced with two choices: internal expansion and development through mergers and acquisitions. Internal expansion may be a slow and uncertain process, and it will develop much faster through mergers and acquisitions, although it will bring its own uncertainty.

Through mergers and acquisitions, the scale of enterprises has been expanded and an effective scale effect can be formed. Scale effect can bring about the full utilization and integration of resources, reduce the cost of management, raw materials, production and other links, thus reducing the total cost.

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