Mergers & Acquisitions (M&A) refers to the consolidation of companies or assets. M&A can include a number of different transactions, such as mergers, acquisitions, consolidations, purchase of assets and management acquisitions.

There are several reasons why companies merge with or acquire other companies, including but not limited to the following reasons:

• synergy;

• growth;

• diversification of business and industries;

• eliminate competition; and/or

• increase supply-chain pricing power.

Merger : Two or more merged companies shall cease to exist as a corporate legal entity and shall result in a new company / legal entity which absorbs all the rights, liabilities and obligations of the merged companies. The new resulting company out of such merger shall be the legal successor of the merged companies.

Acquisition: A company either purchases part of the shares or assets of another company or the entire shares and assets of the other company (i.e., a take-over of the other company in this case).

M&A: Mergers & Acquisitions.