Mergers And Acquisitions - M&A


DEFINITION of 'Mergers And Acquisitions - M&A'

A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.


Loading the player...

BREAKING DOWN 'Mergers And Acquisitions - M&A'

An example of a major merger is the merging of JDS Fitel Inc. and Uniphase Corp. in 1999 to form JDS Uniphase. An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc.

The term M&A also refers to the department at financial institutions that deals with mergers and acquisitions.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. Sandbag

    A tactic used to hide or limit expectations of a company's or ...
  4. Saturday Night Special

    An obsolete takeover strategy where one company attempted a takeover ...
  5. Merger

    The combining of two or more companies, generally by offering ...
  6. Acquisition Premium

    The difference between the estimated real value of a company ...
Related Articles
  1. Professionals

    Career Advice: Investment Banking Vs. Wealth Management

    Take a comparative look at two of the most popular career choices in the financial sector, wealth management and investment banking.
  2. Professionals

    Career Advice: Investment Banking Vs. Private Banking

    Examine the two potential career options of investment banking and private banking, with an eye toward choosing the most suitable career.
  3. Stock Analysis

    Who Are Bank of America’s Main Competitors?

    Explore information and analysis on JPMorgan Chase, Wells Fargo and Citigroup, the three banks considered the main competitors to Bank of America.
  4. Technical Indicators

    Key Financial Ratios to Analyze Biotech Companies

    Explore the rapidly growing biotechnology industry, and learn some of the key financial ratios investors use to analyze companies in the industry.
  5. Stock Analysis

    Is It too Late to Get into the Netflix Frenzy?

    Explore the current state of Netflix and the question of whether its sharp rise in share price over a two-year period means it is too late to buy the stock.
  6. Stock Analysis

    YouTube Can Be A Real Threat for Netflix

    Understand the similarities and differences between YouTube and Netflix. Learn about three key reasons why YouTube can become a threat to Netflix.
  7. Stock Analysis

    Southwest Airlines: Delta's Worst Enemy?

    Learn about the rivalry between Southwest Airlines and Delta. For decades, Delta was the major operator in the South, but it has been displaced by Southwest.
  8. Investing

    What's an Acquisition?

    In corporate terms, an acquisition is the purchase of a company or the division of a company. Some acquisitions are paid in cash, while others are paid with a combination of cash and the acquiring ...
  9. Fundamental Analysis

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  10. Investing Basics

    Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
  1. What are the primary factors that drive share prices in the drugs sector?

    The primary factors that drive share prices in the drugs sector are mergers and acquisitions activity, spending on health ... Read Full Answer >>
  2. What is the outlook for mergers and acquisitions in the utilities sector?

    Mergers and acquisitions (M&A) in the utilities sector will likely continue at a brisk pace for the foreseeable future, ... Read Full Answer >>
  3. What is the long-term outlook of the chemicals sector?

    The long-term outlook for the chemicals sector, as of 2015, is good, primarily due to continuing emerging market opportunities. ... Read Full Answer >>
  4. What level of mergers and acquisitions is common in the chemical sector?

    The level of mergers and acquisitions (M&As) in the chemicals sector has surged to an all-time high since the turn of ... Read Full Answer >>
  5. What proportion of the chemical sector is related to life sciences?

    The subsectors of the chemicals sector that are related to life sciences, pharmaceuticals and agricultural chemicals, make ... Read Full Answer >>
  6. In which industries are mergers and acquisitions most common?

    Mergers and acquisitions are most common in the health care, technology, financial services and retail sectors. In health ... Read Full Answer >>
  7. What is the difference between an accretive and a dilutive merger?

    A merger and acquisition (M&A) deal is said to be accretive if the acquiring firm's earnings per share (EPS) increases ... Read Full Answer >>
  8. What is the electronics sector?

    The electronics sector produces electronic equipment for industries and consumer electronics products, such as computers, ... Read Full Answer >>
  9. What are the long-term trends investors should consider before buying shares of a ...

    The telecommunications sector has undergone significant changes over the course of several decades. These factors center ... Read Full Answer >>
  10. What are some common questions an interviewer may ask during an interview for a position ...

    When interviewing for a job at an investment bank, a candidate is likely to answer questions about his career and education ... Read Full Answer >>
  11. What can cause a merger or acquisition deal to fail?

    When two large companies announce plans to merge, or when the larger of the two acquires the smaller entity, the surviving ... Read Full Answer >>
  12. What can shareholders vote on?

    Common stock shareholders in a publicly traded company have certain rights pertaining to their equity investment, and among ... Read Full Answer >>
  13. Does investing in small cap stocks have advantages over investing in big cap stocks?

    The primary advantage of investing in small-cap stocks is significant upside growth potential that is unmatched by mature ... Read Full Answer >>
  14. What is the drugs sector?

    The drugs sector is the portion of industry that develops and produces pharmaceuticals. This sector includes both major corporations ... Read Full Answer >>
  15. Are acquisitions only for large companies?

    Mergers and acquisitions (M&A) often make headlines. However, the companies that make the news rarely represent the types ... Read Full Answer >>
  16. How do I evaluate whether a company is a good acquisition candidate?

    Mergers and acquisitions allow businesses to increase their market share, expand their geographic reach and become larger ... Read Full Answer >>
  17. What happens to the stock prices of two companies involved in an acquisition?

    When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. ... Read Full Answer >>
  18. What is a stock-for-stock merger and how does this corporate action affect existing ...

    First, let's be clear about what we mean by a stock-for-stock merger. When a merger or acquisition is conducted, there are ... Read Full Answer >>
  19. Why do companies merge with or acquire other companies?

    Some of the reasons for mergers and acquisitions (M&A) include: 1. Synergy: The most used word in M&A is synergy, ... Read Full Answer >>
  20. In M&A how does an all-stock or all-cash deal affect the equity of the buying company?

    Mergers and acquisitions (M&A) are forms of corporate restructuring that are becoming increasingly popular in the modern ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  2. Bullish Engulfing Pattern

    A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses ...
  3. Cyber Monday

    An expression used in online retailing to describe the Monday following U.S. Thanksgiving weekend. Cyber Monday is generally ...
  4. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
Trading Center