Mergers and Acquisitions

Companies often change. They might take over another company or sell a part of their business that is no longer regarded as essential. These types of transactions are known as mergers and acquisitions. Bankers provide advice to those buying or selling companies.

A merger happens when two separately owned companies decide to combine into one. Both companies' shares are surrendered and new company stock is issued. The usual aim of a merger is to create a more competitive, cost-efficient company, through staff reductions, economies of scale and improved purchasing power - although these savings are not always realised. There are other ways of acquiring a company:

Takeover - Acquiring another company
A takeover or acquisition is when a strong company purchases another company (or part of it).
Read about what happens when Butlers, our imaginary public limited company, finds itself the target of a takeover bid.
Management buy-outs - A buy-out from within
A management buy-out is when a business, or part of it, is bought from within by the management themselves.
Read our story to see what happens when the former managers of Butlers decide to buy-out part of the business.