The terms mergers and acquisitions are synonymous and may be used interchangeably

Question

Quizplus · Accepted Answer

Although mergers and acquisitions (M&A) are related and often used together in business, they are not synonymous. A merger is a combination of two or more companies to form a new entity, while an acquisition is the purchase of one company by another. In an acquisition, the acquiring company maintains control and the acquired company ceases to exist as an independent entity. Thus, while both M&A deal with the combining of companies, they involve different ways of achieving the end goal.

The Terms Mergers and Acquisitions Are Synonymous and May Be