Mergers and Acquisitions

Mergers and acquisitions are a big part of the finance world and occur when companies must expand their production and operations. A merger is defined as "combination of two firms into one, with the acquirer assuming assets and liabilities of the target firm" (Brealey, Myers & Marcus, 2003). An acquisition is "takeover of a firm by purchase of that firm's common stock or asset" (Brealey, Myers & Marcus, 2003). Mergers and acquisition tend to happen in order to bring more efficiency into an organization. This generally helps to reduce costs and lower prices fro the consumers. In order for the implementation of the deal to be effective a good amount of research must be done to ensure success. Solid decisions must be made in order for one concrete management team to...