1 Understanding and classifying different types of mergers and acquisitions
This chapter will introduce you to different types of mergers and acquisitions, helping you understand the reasons that inspire organizations to engage in them. A merger or acquisition is a legal transaction in which one organization transfers or combines some or all of its operations to or with another organization. In an acquisition, one organization transfers operations “upwards” to another organization that becomes its legal “parent.” In a merger, two organizations transfer “sideways” to a new organization that is the sum of its two parts and they often rebrand the name of the organization with a new name, a hyphenated name, or one of the two organizations’ names. ...
