Both terms often refer to the joining of two companies, but there are key differences involved in when to use them. A merger occurs when two separate entities combine forces to create a new,...

Technically, a merger is the legal consolidation of two business entities into one, whereas an acquisition occurs when one entity takes ownership of another entity's share capital, equity interests or assets.

However, there’s a clear mergers and acquisitions difference — these are two different deals. A merger describes the process of two privately held companies or public companies uniting into one completely new entity to face strong prospects in the industry or conquer new markets.

Mergers and acquisitions (M&A) refers to the ways businesses, or their assets, are consolidated or combined. In an acquisition, one company purchases another outright. A merger is the...

Merger: Two or more companies, usually similar in power or size, voluntarily combine their assets to create a new business or legal entity. The merger is typically agreed upon by both companies and is a more equal partnership than an acquisition.