Mergers and Acquisitions 101

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A merger is a hostile takeover, while an acquisition is a friendly takeover
A merger and an acquisition are the same thing
A merger involves two companies becoming one entity, while an acquisition is when one company purchases another company's ownership stakes to assume control (correct)
A merger is when one company purchases another company's ownership stakes to assume control, while an acquisition involves two companies joining together to become one entity

The high level of competition for acquisition targets and the need for significant financing
The lack of opportunities for rapid growth and expansion
The level of owner involvement, the often less formal nature of the process, and the typically lower levels of management depth (correct)
The reliance on key individuals and the high level of formalities involved in the process

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A merger is a deal where two companies combine to form a new entity, often with equal terms, while an acquisition is a deal where one company buys another, often with the buyer having more control.
M&A transactions within the SMBs (Small and Medium-sized Businesses) and Lower Middle Market are unique due to their smaller deal sizes, limited resources, and different financial structures compared to larger corporations.

A common goal of both mergers and acquisitions is to increase shareholder value, often by reducing costs, increasing efficiency, or gaining access to new markets, customers, or technologies.