Mergers and Acquisitions. The basics.

In the last few years you would have heard of some major acquisitions by tech giants like Google, Yahoo, Apple and the latest being Facebook. Like always consumers want something fresh every now and then. This generation of tech giants eventually acquire younger more innovative start ups to keep themselves alive. More like a fountain of youth for these old Geysers, which bring us to the topic of M and A.

What is M and A?
M and A or commonly know as Merger and Acquisition, are both aspects of corporate strategy, finance and management dealing with buying, selling, dividing & combining of different companies and similar entities that can promote rapid growth of the enterprise.

In various respects Merger and Acquisitions are quite similar. AS in from a legal point of view, a merger is a legal consolidation of two organizations into one entity where as a acquisition is the process when one organisation takes over another and completely establishes itself as the new owner. In this case the acquired organisation still exists as an independent legal entity although its controlled by the acquirer.

Read more on: Facebook's WhatsApp Acquisition

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