Are you looking to sell your business? Do you know the terminology? Learn what differentiates mergers from acquisitions.

What is a merger?

  • Two existing companies combine to create one new company.
  • Provides benefit to both companies.
  • Working towards a common desired result, decrease operational costs, increase profits, and become larger in markets.

What is an acquisition?

  • An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Purchasing more than 50% of a target company’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders.
  • Happens to expand the acquiring entity and decrease the competition.

An integration is a more generic term that can include mergers and acquisitions.

Questions? Contact Kelly O’Farrell at (320) 214-2959 to learn more.