business
 






 

Question by  xyroclast (65)

Can you explain the difference between a merger vs. acquisition?

I do not understand it.

 
+7

Answer by  phickman (7)

A merger is when two companies come together and for the mutual benefit of both companies. An acquisition is when one company buys a second company. In an acquisition, the company that is purchased ceases to exist.

 
+7

Answer by  Jim23 (303)

When one company take over another company that is an acquisition . When two companies combine to make a new company through agreement on both parts is called a merger.

 
+4

Answer by  tamarawilhite (17883)

In an acquisition, one company buys the other's assets, property and contracts. It could in theory fire all the people of the acquired firm and keep the contracts and patents. In a merger, the leadership chains of both companies and their assets merge. Many jobs are guaranteed.

 
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