Merger

Definition

A merger is the combination of two or more companies into a single legal entity, often to achieve greater efficiencies and increase market share. This process typically involves one company absorbing another, but can also result in a completely new company.

Related terms

Acquisition: The purchase of one company by another where the buying company gains control over the target company's operations and assets.

Consolidation: A form of merger where two or more companies come together to form a new entity, dissolving their previous identities.

Synergy: The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts