What does M&A stand for in investment banking?

In investment banking, M&A stands for mergers and acquisitions.

Mergers and acquisitions is the area of finance concerned with combining companies or transferring ownership and control of businesses. In a merger, two companies combine into a single business, often with the aim of gaining scale, entering a new market, or creating operating efficiencies. In an acquisition, one company purchases another, which may continue as a subsidiary or be integrated into the buyer.

Investment banks advise buyers and sellers throughout the process. Their work can include identifying targets, valuing a company, arranging financing, negotiating terms, conducting due diligence, and helping structure and close the transaction. Banks may also provide fairness opinions or assist with shareholder and regulatory requirements.

The ampersand matters less than the meaning: M&A is the standard abbreviation in finance and business journalism. It is not the same as marketing and advertising, although acquisitions can be used as part of a company’s broader growth strategy. Deals may be friendly and negotiated, or hostile and pursued against management’s wishes.