m&a transaction
Definition
M&A stands for mergers and acquisitions, which describes any deal where one business buys another business or two businesses combine into one. A merger is when two companies join together to form a single new company, while an acquisition is when one company simply purchases and takes ownership of another. These deals can range from a small local business buying out a competitor to massive billion-dollar corporate deals.
Example
If you own a bakery and you buy out the competing bakery across the street, taking over their equipment, recipes, customer list, and staff, that purchase is considered an M&A transaction.
Watch Out
These deals involve complex legal contracts, tax implications, and due diligence requirements, so you should always hire an experienced business attorney before signing anything.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.