A merger usually involves one ﬁrm trying to take over another smaller ﬁrm, whose management attempts to resist the takeover.

Question

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A merger is a type of corporate restructuring in which two companies combine to form a single entity. In a merger, both firms agree to join together as equals, whereas in an acquisition, one company buys another company. In either case, the management of the smaller firm may or may not resist the transaction, depending on factors such as the terms of the deal and the potential impact on the company's stakeholders.

A Merger Usually Involves One ﬁRm Trying to Take Over