In corporate finance, what does M&A stand for?

In corporate finance, M&A stands for mergers and acquisitions.

Mergers and acquisitions are transactions in which companies combine, transfer ownership, or purchase control of businesses and other assets. In a merger, two organizations generally combine into a single entity, while an acquisition occurs when one company buys and gains control of another. In everyday business reporting, the abbreviation M&A often covers both structures.

Companies pursue M&A for reasons such as entering new markets, obtaining technology or talent, increasing production scale, or reducing duplicated costs. Deals may be negotiated privately or involve publicly announced offers to shareholders. Their structure can include cash, shares, debt financing, or a combination of payment methods.

M&A is not the same as an ordinary partnership or a minority investment. A merger or acquisition usually changes ownership or control, although the exact legal consequences depend on the transaction. Analysts commonly examine the purchase price, financing, regulatory approval, integration plans, and whether the combined business produces the expected strategic benefits.