Difference between merger and acquisition
I see some deals classified in internet deals as "mergers" but involve one party buying up all the shares of the other; can that still be classified as a merger? Or is it technically an acquisition?
I see some deals classified in internet deals as "mergers" but involve one party buying up all the shares of the other; can that still be classified as a merger? Or is it technically an acquisition?
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A merger means that neither party remains a going concern.
An acquisition means one company continues to exist (acquirer).
In the case you mentioned, it’s likely that BuyerCo dissolved and become NewCo, even if they retained their name
this isnt really true
legally it's a merger (i.e. merger agreement) whether its a merger of equals or a merger where a bigger company acquires 100% of a smaller company. Different news articles will use these names interchangeably, and will sometimes only refer to merger when both companies are relatively large/similar scale.
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