Mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location.
In the United States, merger volume rose 14.2 percent, to $822 billion.
Global dollar volume in announced mergers and acquisitions rose 23.1 percent in 2010, to $2.4 trillion, according to Thomson Reuters data.
Companies have stashed away a record amount of cash, which they have hoarded since the height of the financial crisis (2008-2009) when cash was considered king.
In 2010, corporate merger and acquisition (M&A) activity made a huge comeback. Most of the M&A activity involved North American companies, but activity has also increased around the world, and in various market sectors / industries.
Of course, those that lose their jobs often feel a sense of bitterness for the merging companies, and that can taint the image of the newly formed company in the eyes of the public.
However, any remaining employees can feel a sense of panic and wonder if their job is in danger, and that can lower productivity levels during the most important time in the lives of the two companies.
The most impactful is often the loss of jobs during the combination process. It's a normal occurrence, since many jobs are often found to be redundant when two companies come together.
A merger is when you integrate your business with another and share control of the combined businesses with the other owner(s).
An acquisition is when you buy another business and end up controlling it.
Deals can be worth hundreds of millions, or even billions, of dollars. They can dictate the fortunes of the companies involved for years to come.
When they're not creating big companies from smaller ones, corporate finance deals do the reverse and break up companies through spinoffs, carve-outs or tracking stocks.
Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, which bring separate companies together to form larger ones.