What do M&A firms do?
M&A refers to the consolidation of companies or assets. M&A can include a number of different transactions, such as mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. In a merger, the board of directors from both companies approve the combination and seek shareholders’ approval. After the merger, the acquired company ceases to exist and becomes part of the acquiring company. In a simple acquisition, the acquiring company obtains the majority stake of the acquired firm, which does not change its name or legal structure.