Mergers and Acquisitions are the important aspects of an organization or corporate strategy or corporate finance and techniques of management dealing in buying, selling and merging two or more separate companies which leads a company to grow swiftly in its economy and infrastructure, without creating another business unit. Acquisition is the practice of Takeover or buyout action in which one company is buying another one. Acquisition may be a private or public and may be a friendly or an aggressive one.  In the friendly dealings or transactions both of the companies can negotiate.

 Acquisition practice normally refers to the situation or practice, when a large company buys a smaller one.  If a smaller company acquires the management control of a larger one, it’s called as the reverse acquisition. Mergers may be of different types such as horizontal, vertical, co generic which depends on the nature of the mergers. Most of the companies are bought by the large companies for their patents, name brand, market value of shares, methods, staff, customers and culture values.

The terms “Mergers” and “Acquisitions” often considered as synonymous, but they have some slight difference in their characteristics. In a normal Acquisition practice the target company which is bought a larger company is no longer exist and only the stock and business of the buyer will be continued in the market. A Merger happens when the involved firms are similar in size and they mutually agree to form a new single company or firm. In this practice it’s clear that after a pure Merge none of the companies are separately owned and operated and stocks of both of the companies are continued in the name of the newly formed company. But in normal practice this type of pure “merges” happens very rarely.

Some of the consequences of these Merger and Acquisitions practices are:

• Staff Reductions
• Introduction of New technologies
• Improved visibility and reach in market
• Improved economy and purchasing power
• Synergy
• Resource transfers

If we analyze the consequences and benefits of Mergers and Acquisitions we can observe that the buyers or the takeover companies get more benefits and they emerge as a new powerful large company in the market with improved values. But in another point of view these holistic mergers may be against the public welfares and Shareholders rights. So the mergers are regulated and supervised by Governments.