What is a merger?
AnswerTwo companies combining into one
In a merger, two firms join to form one.
Business · Facts & stats
Merger facts & stats
7 fact-checked facts about mergers, acquisitions and how companies combine, each with the reason behind it. 5 more are in today's round and join this page after it closes.
The basics
What is "synergy" in a merger?
AnswerThe idea that the combined company is worth more than the parts
Synergies can come from cost savings or new sales.
Going deeper
What is a vertical merger?
AnswerA merger between firms at different stages of the same supply chain
Example: a manufacturer buying its supplier.
What is a conglomerate merger?
AnswerA merger between companies in unrelated businesses
Conglomerates span many different industries.
What is a hostile takeover?
AnswerAn acquisition opposed by the target's management
The buyer goes around the target's board.
Expert level
What does the US Hart-Scott-Rodino Act require for large deals?
AnswerNotice to antitrust regulators before closing
Parties must file premerger notification with the FTC and DOJ.
What is a "poison pill" in M&A?
AnswerA defense that makes a hostile takeover more costly
Shareholder rights plans dilute a hostile bidder's stake.
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