Two company organisations are combined into one through mergers and acquisitions (M&A). When two companies combine to create a new, third company, a merger takes place. In an acquisition, one business buys another and incorporates it into its operations.

The objective of a merger or acquisition is to produce a new business that is more productive and efficient than the two preceding companies were individually.

Both the owners of the original businesses and the owners of the newly combined organisation profit financially from mergers and acquisitions. As part of the agreement, certain stockholders will cash out their shares. As the new firm expands, some shareholders will keep their shares and benefit from increasing dividends.

Mergers and acquisitions can have both operational and strategic advantages. Due to the numerous factors that need to be taken into account and the extensive documentation required, the M&A process may be rather challenging.

Due diligence considerations are the first step in an M&A, followed by documentation, pre-closing, closing, and post-close considerations. To conduct and finish a successful deal, tax, legal, and commercial professionals must do extensive work in each aspect.