
350 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
15.7 Mergers and Acquisitions
Mergers and acquisitions (abbreviated M&A) is an aspect of corporate
strategy, corporate nance and management dealing with the buying, sell-
ing, dividing, and combining of different companies and similar entities that
can help an enterprise grow rapidly in its sector or location of origin, or a
new eld or new location, without creating a subsidiary, other child entity,
or using a joint venture.
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15.7.1 Mergers
Theoretically, a merger happens when two rms agree to go forward as
a single new company rather than remain separately owned an