Thereby the buyer company acquires all the assets and resources of the target company. It combines the other organization with itself. There exist common reasons for Merger and Acquisition, such as it enables enterprises to expand and change the nature of their businesses.

Mergers and acquisitions (M&As) are the acts of consolidating companies or assets, with an eye toward stimulating growth, gaining competitive advantages, increasing market share, or influencing supply chains. A merger describes two companies uniting, where one of the companies ceases to exist after becoming absorbed by the other.