======Mergers and Acquisitions (M&A)======
Mergers and Acquisitions (M&A) is a general term that describes the consolidation of companies or their assets through various types of financial transactions. Think of it as corporate matchmaking. In a **merger**, two separate companies agree to join forces and become a single new entity, much like a marriage where both partners create a new family. In an **acquisition**, one company, the acquirer, purchases and takes over another company, the target. This is more like one business buying another outright. M&A deals can be friendly, where both sides are happy to proceed, or they can be hostile, leading to dramatic corporate battles. These transactions are a constant feature of the business world, reshaping industries by allowing companies to grow faster, gain a competitive edge, acquire new technology, or enter new markets. For investors, M&A announcements can send stock prices soaring or tumbling, making them crucial events to understand.
===== Why Do Companies Do This? =====
At its heart, M&A is about creating value. A company doesn't spend billions just for fun; it's usually chasing the holy grail of business: [[synergy]]. This is the idea that the combined company will be worth more than the sum of its two parts (2 + 2 = 5). The primary motivations behind M&A activities include:
  * **Growth and Market Power:** It's often faster to buy growth than to build it from scratch. Acqu