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To define this topic more clearly, let me state that a corporate merger, as defined by the âQuick MBAâ reference website, is the combination of the assets and liabilities of two firms to form a single business entity. In everyday language, the term "acquisition" tends to be used when a larger firm absorbs a smaller firm, and "merger" tends to be used when the combination is portrayed to be between equals...
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In everyday language, the term "acquisition" tends to be used when a larger firm absorbs a smaller firm, and "merger" tends to be used when the combination is portrayed to be between equals. In case of a merger between two firms that are approximately equal, there often is an exchange of stock in which one firm issues new shares to the shareholders of the other firm at a certain ratio...
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