The Notion mergers and acquisitions contains each aspects connected with consolidation of entities i.e. selling, dividing and connecting. As a effect of connection of two or more companies a new company is made. An acquisition consist in a repurchase onefirm to another and the new corporate is not formed. The cause of mergers and acquisitions are mostly financing the weaker company, the increase of position in the field or will to lead new and better services. M&A activity can be defined as a type of rebuild. The difference between a "connection" and an "acquisition" has become more blunt in disparate respects, especially in notion of the final economic effect, albeit it hasn’t fully disappeared in each situations. From a legal point of view, "connection" is a lawful consolidation of two and more diffrent companies into one unit, while an acquisition appears when first company takes over other and totally establishes itself as the new proprietor, in which case the first company still occur as an irrespective legal entity menage by the acquirer. Read more.
