Mergers and Acquisitions (M&A)

Definition

M&A is the general term for combining companies through a merger, where two companies join as one, or an acquisition, where one company buys and absorbs another. It is the umbrella category for how ownership of a company changes hands outside an IPO.

Wie es im Fundraising vorkommt

For startups, M&A almost always means an acquisition rather than a merger of equals, and it is the most common way venture-backed founders and investors realize a return.

Häufig gestellte Fragen

What is the difference between a merger and an acquisition?

In a merger, two companies combine into a new or surviving entity as roughly equal partners. In an acquisition, one company buys and absorbs another, which is how most startup exits actually work.

Who typically leads M&A activity for a startup?

The board and CEO run the process, often with an investment banker or M&A advisor managing outreach to potential acquirers and negotiating deal terms.

Setzen Sie diesen Begriff ein

Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.

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