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Definition

Definition

Merger and acquisition (M&A) is a general term that refers to the consolidation of companies or assets. To be specific, a merger is a consolidation of two companies into one entity, while an acquisition means one company takes over another and establishes itself as the new owner.

 

M&A is an important means of adjusting the industrial structure and optimizing allocation of resources through using of market mechanism. During the development of small and medium-sized enterprises (SMEs), M&A helps them go through bottleneck period and achieve a leap forward.