Differentiate between merger and acquisition.

Question

Accepted Answer

Merger is when two companies combine to form a new entity, while acquisition is when one company takes over another.

Merger involves the creation of a new company, while acquisition involves one company taking over another.
In a merger, both companies' stocks are surrendered and new stocks are issued for the new entity, while in an acquisition, the acquiring company's stocks remain.
Merger is usually a friendly process, while acquisition can be hostile.
Examples of mergers include the merger of Disney and Pixar, while examples of acquisitions include Facebook's acquisition of Instagram.

Accepted Answer

A merger is the collaboration between two or more businesses of equal size that creates one big organisation where their resources,concepts technology and assets can be shared.while in acquisition a larger organisation buys smaller business entity for expansion

Differentiate between merger and acquisition.

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