Mergers and acquisitions refers to the aspect of business approach, business activity and management which deals with buying, selling and merging different companies which can support , build, finance a developing company in a certain industry develops quickly without having to create another business entity. Merger is a tool used by companies for the purpose of expanding their businesses with the aim of increasing their profitability. In most cases, mergers occur in a consensual context (occurred by mutual consent) in which the executives of the target company help those of the acquirer in a due diligence process to confirm that the deal has value for both parties. Takeovers can also occur in the event of an adverse buyout, purchasing the majority of a company's outstanding shares on the open market, contrary to the wishes of the target's board of directors. In the United States, business laws vary from state to state, so some companies have limited security against hostile takeovers. One form of security against an enemy takeover is the shareholder rights plan, otherwise known as the "poison pill." Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay An acquisition may be only slightly different from a merger. In fact, it may be different in name only. Like mergers, acquisitions are actions through which companies seek economies of scale, productivity and better market visibility. Unlike all mergers, all acquisitions involve the purchase of a company by another company: there is no exchange of shares or alliance as a new company. Takeovers are often hospitable and all parties feel satisfied with the deal. Other times, takeovers are more hostile. In an acquisition, as in almost all of the mergers we talked about above, a company can purchase another company with cash, stock, or a combination of the two. Another option, common in smaller operations, is for one company to acquire all of the other company's assets. Company Of course, company Y simply becomes a shell and will eventually liquidate or enter a further area of ​​business. Another type of acquisition is a reverse merger, a deal that allows a private company to go public in a fairly short period of time. A reverse merger occurs when a private company that has strong opinions and is eager to raise financing buys a publicly traded shell company, typically a company with no assets and limited resources. The private company merges with the public company and together they become a completely new public company with tradable shares. The corporate sector worldwide is reforming its operations on different types of merger strategies such as mergers and acquisitions to deal with the tasks posed by the new model of globalization, which has led to greater integration of domestic and international markets. The power of such operations is growing with the deregulation of the government's various strategies as the organizer of the neoliberal economic system. In the past, companies also used alliance strategies extensively, but one of the most striking features of the current wave of mergers and acquisitions is the presence of a large number of cross-border deals. Historically, mergers have often failed to add value.