An Overview of Mergers and Acquisitions and its Impact on Market

Merger and Acquisition is one of the most effective ways to boost the growth of any company. It is a general term which depicts the unification of companies through various types of financial transactions. The terms ‘merger’ and ‘acquisition’ are often used interchangeably, but they both have distinct meanings. In an acquisition, a company acquires another company by buying its assets. Merger, on the other hand, is combination of two firms, which subsequently forms a new legal entity. This article delves into the importance of mergers and acquisitions as a strategic tool for business growth by discussing various types of mergers, and the legal framework regulating M&A in India.