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Business Mergers
August 10, 2020 • Business
Mergers and acquisitions are transactions in which the ownership of companies, other business organizations or their operating units are transferred or combined. From a legal point of view, a merger is a legal consolidation of two entities into one entity, whereas an acquisition occurs when one entity takes ownership of another entity’s stock, equity interests or assets. From a commercial and economic point of view, both types of transactions generally result in the consolidation of assets and liabilities under one entity, and the distinction between a “merger” and an “acquisition” is less clear.