Mergers and Acquisitions often called as M&A in short form. Companies globally adopt these strategies to grow or survive in the competitive market. The merger has been defined in the Companies Act, 2013 as the combination of two or more business entities to make a new entity. The acquisition, on the other hand, involves one party selling out to another wherein the buying party combines both the entities to make it into a single entity.

In the layman language, the merger is an agreement that is based upon the two existing companies that pursuit to form an all-new company. A merger is basically done for the purpose of expansion of business unit and to broaden the hands in every corner of the market making an entry to new segments for gaining market limelight.

Whereas, the acquisition is when an existing company or new company acquires the other company with a legal agreement is called the acquisition.